7 Rules of Wealth Creation

Folks, have you ever wondered why some people are wealthy and others aren't. How can you get into that situation? How can you change your life so that you can have all the things that you've ever wanted? A few very simple, yet time-tested strategies will get you on the road to financial freedom and true wealth. Read these 7 Rules of Wealth Creation.

1. Develop a "Wealthy" Mindset

Without doubt, your mindset is the single most important factor that will determine whether you will be wealthy or not. True wealth and abundance come from having an affluent psychology. You gotta remove any disempowering beliefs you have about yourself or money. Buy yourself a copy of Napolean Hill's "Think and Grow Rich" if you want to understand how your thinking will make you wealthy (or not!). Whatever you think about, you bring about i.e. Law of Attraction.

2. Spend Less than you Earn, Invest the Remainder Wisely.

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. 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. It is recommended that you save at least 10% of your earnings. Finally, when investing, only take investment advice from someone who is as wealthy as you want to be.

3. Learn the Language and Mechanics of Money

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. 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.

4. Pay off Your Debts...Fast!

You can literally get rich by getting out of debt! Start by paying off the loan with the highest interest rate first. It could very well be your credit card debt. Then start on the debt with the next highest interest rate. Do this by laying down a payment schedule month by month until that debt is gone. If you think you haven't got enough left out of your monthly pay packet to start paying off those debts...think again. Everyone can buy one less daily capuchino, make a sandwich for lunch, walk instead of grabbing a cab etc. Simple stuff but it makes a difference to your net position at the end of each month.

5. Acquire Assets

There are two ways to increase your net worth...1. Reducing your liabilities(debts) which we spoke about in Rule 4. The second way is by increasing your equity (assets). There are essentially 3 types of assets: Paper Assets (Shares, Bonds, Pensions etc); Real Estate (Residential, Commercial, Development) & Business (Start, Buy, Rent). 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).

6. Know the Power of Compounding

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. Ok, so many of you want to be millionaires at a younger age but it illustrates the point. 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.

7. Use Other Peoples Money, Other Peoples Time

I don't know how many times I've heard people say "I don't have the money to do that". Listen, no one does. But saying this is a nice excuse that allows you to stay within your comfort zone. The answer to any problem always lies outside your comfort zone. 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). The ability to raise and use OPM and OPT is crucial to obtaining the financial freedom you desire.

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5 Money Mindset Hacks To Explode Your Income

If you want to start making more money look beyond the paycheck. So often our money - both the good and the bad - comes from within. We can work like a donkey, but if we don't have a successful mindset then we'll never get ahead. If you want to start making more money, don't get a second job, just get real with yourself about how you may be standing in your own way.

A lot of the time, money isn't about the physical green paper, it's about the psychology of money and our attitude towards it.

Here are five money mindsets to help increase your income:

Believe in yourself

Sometimes convincing ourselves that we deserve better is the hardest part of making positive changes, this is especially true when it comes to making money. Asking for what you're worth isn't easy and it can be uncomfortable - but only if you let it. If you believe in yourself and know what you're worth then you should have no problem asking for it - and more importantly getting it.

Get rid of your money blocks

If you believe in yourself then others will too. Don't be limited when it comes to your finances because money makes the world go round. If something isn't right with your money then make the necessary changes to fix it. Don't ever think you can't do something. We can do anything, if we work hard. If you want to start a business, then do it. If you want to save more money, then do it.

Increase gratitude

Giving back is so important, this includes giving back to yourself and to others. Take a moment and think of all the people who helped you get where you are today. If you're like me you probably have a list of people that you would like to thank, so do it. Don't forget to put yourself on that list too. If you are debt free and making money you're doing it because you worked hard for it and for that you deserve a pat on the back.

Forgive your financial past

No one is perfect. If you have a less than ideal financial past don't let it stop you from moving forward. Don't forget the past because making those mistakes helped turn you into the financially responsible person you are today (or at least on your way to becoming). However don't dwell on it, just learn from the past and move on.

Declutter your life

Who has time for nonsense in their life? Not smart, savvy young women, that's for sure. Get rid of everything in your life that's not useful and serves no purpose, this includes both people and what's in your wallet. You don't have time for negativity when you're trying to make money because they both take up a lot of energy. If you have to pick one, I suggest focusing on making money and forgetting about negativity.

Declutter your home, car and office as well. Money likes speed, clarity and a clear space. If you find that your office desk, wallet and closet at home are cluttered then it's time to get to work! Money cannot flow into your life when there's clutter all around you.

If you have unused credit cards, store cards and bank accounts then close them. Is your wallet littered with old receipts? Toss them. Does your wallet look old and tattered? Then it is time to buy a new wallet. They may have served their purpose in the past, but now you've moved on to bigger and better things. You need to make time for more important things - like stacking all your cash.

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4 Quick Ways To Change Your Money Mindset

Many us have been raised up in environments that have caused us to think negatively about money. We were told thing things such as "money doesn't grow on trees", " the more money you have the more problems you have", "money doesn't buy love or happiness", and "money is the root of all evil" No wonder why the majority of people have a hard time thinking positively about money! As a result the subconscious mind is passing by opportunities that can possibly create more wealth.

Here are 4 Tips On How To Change Your Money Mindset

1. Money is a Tool. The first tip in changing your money mindset, is to first recognize that money is a tool, it is neither good or bad. It's also a fact that money is ore often used to good than it is to do bad. A lot of people who I come across say if they had more money they would give back to the community or donate to a charity. It is important to be grateful and appreciative of all the good money can be used for, it can make positive changes in the world and help others. Money is a tool that should be sought after, and not avoided.

2. Money is Abundant. The next tip is to recognize that money is abundant it is available. When you were young, you may have been told by your parents that money doesn't grow on trees, and if you are still holding on to that belief, your mindset may be holding you back and pushing money away. Yes, money may not grow on trees but there is enough of it available for you to get share, so get rid of the belief that it is scarce.

3. Give it Away. Yes, you read it right. You need not to be scared to give money away, by giving money away you can develop a positive mindset for money. Wanting to hold on to every bit that you have is a sign of a stingy mindset and reinforces the idea into your subconscious that there is not enough available. Giving reinforces the concept of abundance.

4. Be Happy for those who have money. Finally be happy for those who have money, we are often told that people who have money are greedy and we are tempted to think negatively about them. However, it is opposite of that, wealthy people often accumulate their wealth by sharing what they have with others and believing in the idea of abundance.

When someone else has money, don't resent their success. If you have feelings of jealousy and envy, that will only hold you back from achieving your own success and wealth. Instead be happy for others and know that wealthy is available and can happen to you too.

I shared with you 4 Tips on How to Change Your Money Mindset! As long as you believe these negative thoughts, and hold on to them you will continuously push money out of your life, you will never create the wealth that you desire or deserve to have.

By making these changes in how you think about money, you will be on your merry way to developing a positive mindset. Once you being thinking about money in a positive way, you will be on the path to creating your own wealth.

Article Source: http://EzineArticles.com/6542217

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