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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10 Power Questions To Get You Motivated

There are times in life when we need to motivate ourselves. We often have big ambitions we want to achieve. Sometimes, however, the motivation and clarity we need evade us, and the limited timeframes we have mean we need to get busy when we simply lack the zest to do so.

The following are a set of simple questions we can ask ourselves to begin to create the direction, the clarity and above all the motivation for ourselves to act:

1. What is the highest vision for my career, my life and myself?

This is really a reminder question for us. A key element of a balanced life is to have a clear vision of who you want to be and where you want to take your career and your life. This question is an opportunity for you to create that vision (preferably on paper), or if you already have it, to remind yourself of it.

2. What's the bigger picture here?

This question follows on from the first. When you have your vision, your subconscious mind will start to think creatively about how you can begin to make that vision happen. What's the bigger picture here, allows you to keep your thinking at a higher level, rather than bringing it down to the detail of life too quickly.

3. What are the key activities I need to be engaged in to get me to where I want to be?

This is a great all-encompassing question that takes you down a level in terms of your thinking. The focus of this question is the key activities. These are the 20% activities that will give you 80% of your results (according to the Pareto Principle). Again, this keeps your thinking at a level that allows you to focus on just those things that will get you to your outcome in the best way possible. You are not down at the micro or detail level yet. A good way to approach this is to come up with a list of just 2-4 key activities. These will become your projects from which your key tasks will flow.

4. How can I leverage my time, energy and money?

Leverage means investing a small amount of your resources in such a way that you get results that are many, many times greater than that investment. It could be, for example, that you invest a given amount of your time, energy and money to acquire the time, energy and money of many others. This is a form of leverage that is used to very powerful effect, for example, in the business world, and is how many businesses grow from sole-entrepreneurship to global status. Therefore asking yourself this key question constantly, permits you to engage fully in those activities that will give you the greatest return on your time, energy and money.

5. Do I need outside help?

This question flows on logically from the previous. It opens up your thinking, and allows you to consider the fact that others may be able to help you in your quest. This question prevents you from getting caught up in believing that you have to do everything yourself. Often when we are in this mode we can easily become overwhelmed, and this can sabotage our results. It is therefore useful to be asking yourself this question constantly so that external resources regularly show up for you.

6. What is stopping me from moving forward?

Sometimes we don't consider this question, and simply try to achieve our aspirations in life. By considering what may be stopping you, you are giving yourself the chance to acknowledge what is going on for you at a deeper level. This can reveal blockages that go way back, that may even have begun in childhood and could still be affecting you today. By using key techniques such as Energy Therapy to clear psychological and emotional barriers, you can begin to move forward and work more effectively towards your outcomes.

7. Given who I am, where I am in life, who I want to be and where I want to be in life, how can I use the time I have to the greatest effect?

This question may be detailed, but it acknowledges that you may have a limited amount of time in which to act, and therefore recognises that you need to use that time wisely. It also acknowledges who you are and where you are in your life right now whilst recognising that you have aspirations to improve. This is a powerful question that encourages you to look beyond those activities that may seem urgent but may not at this moment in time be in the best interests of your overall vision.

8. What can I do?

The is another all-encompassing question that begins to bring your thinking down to the task level whilst allowing your subconscious to consider all the options open to you. It also focuses your mind on what you can do rather than what you feel you can't.

9. How can I get started?

Getting started is one of the most difficult parts of any project or vision accomplishment. Asking yourself how you can get started brings your focus back to the current moment, and allows you to decide what your first step is going to be. This point alone can open up numerous doors in your mind, and can begin to make what may have seemed overwhelming or impossible, possible.

10. How can I work smarter?

Once we've started on our journey towards our vision, we can often get caught up in the detail of the work, and risk losing both our focus and direction. The upshot is that we can become derailed and distracted, and the effectiveness of our work can suffer. Asking yourself at every stage of your journey How can I work smarter will help you to find better, more useful and more intelligent ways of achieving your aims.

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