7 rules of wealth creation
Post on 19-Oct-2014
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7 Rules of Wealth
have you ever wondered why some
people are wealthy
and others aren't
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How can you get into that
situation?
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How can you change your life so
that you can have all the things
that you've ever wanted?
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A few very simple
yet time-tested strategies will get you on the road to financial freedom and true wealth
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7 Rules of Wealth Creation.
1. Develop a "Wealthy" Mindset
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Without doubt, your mindset is the
single most important factor that
will determine whether you will be
wealthy or not
1. Develop a "Wealthy" Mindset
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True wealth and abundance come from having an affluent psychology
1. Develop a "Wealthy" Mindset
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You gotta remove any disempowering beliefs you have about yourself or money
Whatever you think about, you
bring about i.e. Law of Attraction.
1. Develop a "Wealthy" Mindset
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2. Spend Less than you Earn, Invest the Remainder Wisely
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The average person is spending
105% of their earnings i.e. they
are in debt
Debt is only good if it's for building assets
2. Spend Less than you Earn, Invest the Remainder Wisely
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This is good debt!
You must have a spending plan for your life
to make sure you only spend what you have
and then save and/or invest what remains
save at least 10% of your earnings
2. Spend Less than you Earn, Invest the Remainder Wisely
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3. Learn the Language and
Mechanics of Money
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Making money and becoming wealthy
can be a bit like learning a foreign
language
There's lots of terms like: Assets, Liabilities, Liquidity, Net Worth, Gearing, Leverage, etc.
3. Learn the Language and Mechanics of Money
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and you must know what they mean
in order to become a good investor
The mechanics (tools, strategies, investment
vehicles, etc.), also need to be learnt so
you put them into practice knowledgeably.
3. Learn the Language and Mechanics of Money
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4. Pay off Your Debts...Fast!
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You can literally get rich by getting out of debt!
Start by paying off the loan with
the highest interest rate first.
4. Pay off Your Debts...Fast!
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It could very well be your
credit card debt
Then start on the debt with the next highest interest rate.
4. Pay off Your Debts...Fast!
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5. Acquire Assets
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Reducing your liabilities(debts)
which we spoke about in Rule 4
The second way is by increasing your equity (assets)
5. Acquire Assets
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There are essentially 3 types of assets:
Paper Assets (Shares, Bonds, Pensions etc);
Real Estate (Residential, Commercial, Development)
Business (Start, Buy, Rent)
5. Acquire Assets
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You absolutely must acquire the
knowledge about investing in these
asset classes in order to build wealth
Work within your own boundaries. Only acquire assets you can afford to pay for or learn how to use Other Peoples Money (see Rule 7).
5. Acquire Assets
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6. Know the Power of Compounding
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Did you know that if you invested just $5,000 per year at an average return of 7% from the age of 25
you'd be a millionaire by the time you hit 65
6. Know the Power of Compounding
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It's vital that you decide on an absolute
dollar amount you will invest each and
every month
no matter what and stick to this to see
your wealth grow through
compounding.
6. Know the Power of Compounding
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7. Use Other Peoples Money, Other Peoples Time
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One of the keys to getting out of the rat
race and creating financial independence
is knowing the secret of leveraging other people's time (OPT) and other people's money (OPM).
7. Use Other Peoples Money, Other Peoples Time
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The ability to raise and use OPM and OPT
is crucial to obtaining the financial freedom you desire.
7. Use Other Peoples Money, Other Peoples Time
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Strategies like these can really make you a lot of money and put you on the road to real wealth creation.
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Learn The Powerful Formula To Achieve Your Financial Goals
With Mathematical Precision