The 4 Pillars of Wealth Creation
Many people know how to make money but majority might not know the pillars of wealth creation. You need high income skills to create wealth. Making money, Saving, Investing and management are all steps to become rich.
What is wealth and how do you create it??Let’s look at what I call the four pillars of wealth creation. Everything I am about to tell you about wealth building can be summarized in one sentence.
Find work you love doing and pays well, hold your living expenses constant, and reinvest leftover money into stocks, bonds, and real estate.
Rinse and repeat for enough years, and you’ll have built sustainable wealth. The word “sustainable” is the key.
We live in a world where many people want to take a shortcut to the wealth-building process by throwing their money into highly speculative assets like Bitcoin, NFTs, and options trading.
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While you can get lucky and strike it rich with these speculative assets, it won’t be sustainable because these can come crashing down (and stay down) as quickly as they shot up in value.
I have always been interested in wealth and the wealthy.?You may have noticed that this blog has a whole main menu area dedicated to building wealth - personal finance.
Wealth is the accumulation and possession of money and assets. Even though you may think it means the same as prosperity, the latter has a broader scope.
Prosperity is about striving and succeeding in life. It is an abundant state of mind. That is why anyone planning on being wealthy should prepare for being prosperous instead.
Many of the articles in that area focus on the?demographics of millionaires.?And, the habits of millionaires.
Definition of Wealth
Wealth is an abundance of valuable material possessions or resources. Now, wealth: In My Terms – And Maybe Yours? Wealth is about a process in which we create and deliver value.
Furthermore,?wealth creation is about long term approaches that involve your personal development.?And this development results in your ability to create and deliver more and more value over time.
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Creating and delivering value results in the ability to make money and accumulate valuable resources.?Those resources are how we measure a person’s wealth.
Now, that is pretty thought-provoking to me.?Stop and think about it for a minute.?Think about how it relates to you and your own pursuit of wealth.
The Foundations Of Wealth Creation
Since that is the definition of wealth that I’m using today, I want to unpack it.?And, I want to unravel it before we get started.
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So, let’s emphasize some key points about creating?money in abundance.
We think about delivering value and creating wealth over the long-term. And, we do this by?practicing good money habits?and through continuous self-development.
By delivering more and more value, we are able to earn and accumulate more and more resources.?These resources are accumulated over the long-term.?Therefore,?wealth is not about getting rich quick.
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Wealth is defined by resources.?And, I like the word resources.?Here’s why…
Money, investments, and property are some?important aspects of wealth-building.??On the other hand, it is not just about monetary assets like these.
There are other types of valuable resources you should accumulate to create true wealth.?And we will touch on those in a moment.
But now, let’s take this definition and review the 4 pillars of wealth creation.
The Pillars Of Wealth Creation
With all the research and writing I have done on the topic, I wanted to reduce some of the things I have learned down to a few basic concepts.
And, share those concepts with you.?I call them the 4 pillars of wealth creation.
1. Create Wealth By Making Money
As far as you’re building &?delivering value, making money makes sense.
When you make money, cutting down your expenses can?accumulate assets to build wealth.?Even if you start from?zilch,?you?can still observe most business tycoons?create their wealth.?
Now that you have understood the psychological aspect of wealth creation. Do not get too hung up on wanting to read all the personal development books in the library or kindle.
You need to take action and start creating wealth.
When a person can create and deliver value, normally they can make money and increase their income over time.?So, the ability to make money is the first resource we are going to discuss.
a). Build A Fabulous Business
The other primary means to make money is to?create and build wealth?through business ownership.?Here you have to create and deliver value for your customers, not your employer.
Whether you work for someone or have your own business, ask yourself this question.?What is my unique value proposition or what can it be??Then nurture it and develop it to make money.
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