Chapter 4 / The Formula for Riches / The Difference Between Rich and Poor / by Dr. Hannes Dreyer.
Chapter 4
How can you become and Stay Wealthy?
I made up my mind in 1987, that the only way to become wealthy was to identify what was keeping me poor, formulate it, and then follow a strategy to avoid doing the wrong things and choose what is right.
I realized that doing it this way would give me a far better chance of becoming wealthy than trying any other known strategy because, from personal experience, I know the chances are less than 1% that other strategies are going to help me to become financially wealthy.
People are following the wrong financial strategies. These strategies are based on the wrong economic model. Unless we start by changing our attitude and getting out of our mental boxes, it is impossible to become wealthy.
I formulated a strategy based on what keeps us poor.
The question then remains, how do I incorporate all of this into a formula?
The Birth of The Formula For Riches.
In 1987 I was a professional financial planner with Volkskas Bank in South Africa.
I was one of their top insurance brokers.
Although I was doing exceptionally well, I realized that, unless I could get my money to work for me, I would continue to work for my money all my life. I searched for ways to invest my surplus income and I looked beyond all the obvious choices.
The reason I did not consider the conventional or “normal” ways of investing (i.e. paper assets; products offered by financial institutions) was because I could see that the projected growth rate the financial institutions, “promised”, was inadequate if I wanted to stop working before I reached fifty. At that stage, I was thirty years old and my goal was to be financially free before the age of fifty.
I calculated that if I followed the financial institution's advice, I would need a lot of money in order to make enough money to retire by the age of 65. But I wanted to retire at 50 and I knew that would be totally impossible, according to them and their products. But I did not accept no for an answer. I felt there had to be another way.
Selling insurance policies in 1987 was easy. By then I had invested a lot of time and money in my own sales education and I was a top performer. But I had also realized that while I was putting in all this work and dedication for the company, I was not making myself rich.
No matter how many awards, bonuses, free holidays, and even high commissions I earned, none of that would replace real financial freedom. You see, all those wonderful rewards I was given, were really cheap for the company compared to the millions I was bringing in for them.
That’s why my “real job” in 1987 was to find a better way, where my money would work for me instead of me working for my money.
I looked at real estate as an option but soon ran into a problem. It was almost impossible to calculate the real growth of my investment. Many people claimed they could calculate the growth of their investments, but they were confused.
What they did was calculate the growth on their real estate – in other words, how much their property appreciated over a period of time – but they could not calculate the growth on their investment. I am one of those people who believed that problems create opportunities, so I began working on a solution to the problem.
Without knowing it, I had taken step two on my journey in order to discover The Formula for Riches.
In order to calculate the growth of my surplus, I developed the Property Pro Investment Program?. The original purpose was to determine the growth potential in any specific real estate investment anywhere in the world.
Different kinds of property investments – which one?
There are different ways to invest in real estate and different classes of property.
The two different classes of real estate are residential and commercial. To make things more complicated, in each class of property there are different ways to invest (or so I thought in 1987).
You can buy and sell, develop, or buy property as a long-term investment. In 1987 I did not know which of the two classes of property would be best to invest my money, time and effort.
It was while experimenting with the results of the program that I figured out a system to calculate the growth potential in any class or type of property investment and also fortuitously developed a system to determine the risk potential in any property investment.
This was quite an eye-opener. For the first time, I had a “tool” to determine the risk and growth potential of any property.
Because of this, I became aware that if I changed any of the more than twenty variables inherent in any property investment, both the risk and the growth potential changed.
What was even more fascinating was the fact that the results were mostly the direct opposite of what I had been taught in my professional training. (Remember, I was a qualified financial planner at that stage.) For example, the higher the risk, the higher the growth.
This was scary!
I thought I had made a mistake with the design of the Property Pro Investment Program?. How on earth was it possible that I could lower the risk and simultaneously increase the growth on my investment? How could I change the picture so profoundly simply by applying well-known strategies like gearing or negotiation?
This was contrary to what I had been trained to believe.
At university and during my studies in financial planning I was taught that “the higher the risk of any investment, the higher the growth will be.”
Now I had proof that this theory of “the higher the risk, the higher the growth” was simply not true.
In fact, the basic truth was so simple and obvious that I could not believe I had overlooked it. I think the reason why I did not “see” the obvious was because I was conditioned to be an “expert” - a Certified Financial Planner.
Since then I have come to see that the truth is simple, yet our conditioning and our mindsets keep us from seeing it, no matter how clear it really is.
Ignorance will keep us poor, even if we make a lot of money.
In other words, we can make money but we cannot hold on to it if we do not educate ourselves. For example, a high-earner brings in lots of money but spends it all, or invests it all in a business venture with high risk or simply high input costs which is a different kind of risk, and loses it all.
This is why winning the lottery does not make you rich and most lottery winners are worse off a year or two later than they were before they won. Because it’s not money that makes you rich! It is understanding how to create riches, using a proven tool to do this (Universal Formula For Riches, Property Pro program?), and being careful to stick to the system!
Sometimes the truth is so obvious that we tend to overlook it. Let me tell you what brought about this revelation.
In my negotiations on a property transaction, I calculated that I simply could not afford a property based on the asking price. The only way I could buy the property was if the owner was prepared to take a lot less than the asking price.
I told the estate agent I wanted to offer less, but he immediately advised me that he “knew” the seller would not accept a lesser offer.
About a month later the property was still on the market. I approached the estate agent again but this time I said that I had decided to make an offer to purchase.
He completed the offer to purchase and wrote in the original asking price. I said it was not the price I was willing to pay. The offer would be lower than the previous price we had discussed, I had decided to deduct all the costs of the transaction as well.
The estate agent was not pleased or impressed but I stuck to my offer saying I simply could not afford to pay more.
He reluctantly presented the offer to the seller who phoned and asked me to increase my offer by $2,857 and I would have a deal. I told him that my offer was final as I could not afford a cent more. Now, this may not sound like a lot of money but the lesson I learned was immeasurable.
The day the offer expired, the seller accepted it.
I had bought a fabulous property and in the process saved myself a lot of money.
My first financial lesson – the lower the risk, the higher the growth.
That evening I realized I had lowered my risk because I had paid less. At the same time, I had increased the growth of my investment because I had bought the property below the “perceived” market value.
In other words the lower the risk, the higher the growth on your investment. This is directly the opposite of what we are taught. Yet it is so logical that most people overlook this truth, mostly because we are so conditioned to believe and never question what the financial institutions teach us.
Let me explain this truth by using an example.
The first thing is to determine the “real” value of the property as there is more than one value to any investment.
Do you know what the market value is as opposed to the real value (intrinsic value) of any investment? I will explain this a little later. Most investors do not know this.
Let us assume the intrinsic value is $1 million but the seller wants $1.3 million (market value).
If I offer him $1,3 million and I have to resell the property immediately for whatever reason and I only get the intrinsic value of $1 million, I have lost $300,000.
This loss is a real risk. To me losing capital is a risk.
However, if I can get the property for $700,000 and the intrinsic value is $1 million which I can get on a quick resale, I would have made a profit of $300,000.
It is, therefore, better and a lot less risky (exactly $600,000 less risky!) to buy the property for $700,000 than for $1,300,000.
I also change a loss of $300,000 into a profit of $300,000.
By paying $600,000 less, I increase my profit by only $300,000 if I sell at the intrinsic value of the property unless I can find someone else who is willing to pay me the $1,300,000 which is possible but may take more effort.
Let’s take it one step further.
If the seller wanted $1 million for the property and I paid $1 million then my risk and profit are $0 – provided the value of the property is $1 million and I can get it when I sell.
If I buy it for $700,000 I save $300,000, in other words, I lower my risk by $300,000. If I then sell the property for $1 million I of course make $300,000 profit.
Thus if I can determine the intrinsic value I avoid a lot of risks because I am not going to pay more than the property is worth – even if the perceived value, also called the market value, may be more. Anything you pay more than the intrinsic value of an investment is financial suicide.
The art of investing is to be able to determine the intrinsic value of an investment.
You must always pay less than the intrinsic value if you want to be an investor. If you pay less than the intrinsic value you create “real” value and you lower the risk in any investment.
Why do most people commit financial suicide?
Right now the majority of so-called investors are skating on thin ice, due to financial ignorance, as they do not know how to determine the intrinsic value of a property or any other investment themselves.
They listen to other people and base their decisions on emotion.
This is only the tip of the proverbial iceberg.
As already explained, the market value is not the “real” value of an investment. The market value is what the average investor will pay for a specific real estate at a given time and under certain conditions such as low-interest rates.
Market value is influenced by the general investor sentiment about a specific class of investment at a given time. The sentiment is the same thing as emotion.
In any investment, there is a “real” value. Sometimes the market value is more than the “real” value. In other words, the average investor will pay more than the investment is worth. This is especially true during boom times, as we experienced from about 2003 to 2006 in many countries around the world.
The opposite is also true. The market value can be less than the “real” value of a property.
The “real” value is also called the intrinsic value. How do you find out what the intrinsic value is? If you want to become an investor, you must know how to determine the intrinsic value of any class of investment otherwise you will not be able to determine your real risk in an investment.
The discovery of the real value, real risk, and real growth on any property investment.
I can determine the real growth and real risk in any class of property investment, and this has been the case since 1987 when I developed the Property Pro Investment Program?.
While using the program I had also found, contrary to what I had believed about risk versus growth, that the lower the risk the higher the growth. As previously mentioned, I thought there must be a flaw in the system. Then I realized that the flaw was in my assumptions!
The program is correct because it works only with figures and calculations, not preconceived ideas, common knowledge, or anything else that turns out to be way off the truth. This is another reason to rely on a system that works and not on our own sometimes flawed judgment.
At that stage, I felt I had discovered the biggest treasure in the world. I was so excited because I could see that the truth was setting me free and it could do the same for others! So I immediately started sharing this newfound “wisdom” with my peers. Needless to say, they were not nearly as excited as I was. In fact, they absolutely refused to discuss the topic with me!
To them, this was not part of financial planning and we as financial planners were not allowed by contract to sell any other products than those that the financial institutions allowed us to sell.
I was surprised at the lack of interest in a tool that told the truth about investing however I did not allow this to stop my enthusiasm. With my new system, I discovered that there was very little correlation between the growth of a property (the increase in market value due to the popularity or status of the area) and the growth of your investment in the property.
Again, this did not make sense to me as I had been taught that there were only three criteria to good property investment. You’ve heard this before, over and over again: the most important thing is location, location, and location.
By comparing literally hundreds of properties in different areas, I quickly realized that location plays a very small part in the overall growth of your investment.
I could in fact prove that the better the area the higher the risk factor!
I also discovered approximately two dozen different techniques, strategies or management approaches you can use to manage growth and risk in any long-term property investment. By applying these techniques you not only lower the risk but at the same time, increase the growth of your investment.
I discovered yet another interesting phenomenon. By applying different strategies and layering them on top of each other, the results will increase exponentially.
In other words, if I use only one strategy at a time there will be a change in the risk and growth - it will improve. But the moment I start using more than one strategy on the same property, the improvement in results can become spectacular, to say the least!
When I explained this to my financial colleagues in 1987, they thought I had lost my mind and they did not hesitate to tell me so. They told me that I should concentrate my energy on selling insurance policies because they were time-proven, secure, and solid investments.
When you are pioneering something you are obviously alone and often misunderstood. It would have been so easy, at that point, to listen to their “wisdom” or should I say “conventional wisdom” and climb back into my box.
I decided to apply my newfound wisdom and experimented with the property as an investment. I bought my first commercial property in 1987, using the Property Pro Investment method and the results were, to say the least, spectacular. I had never in my life thought that it was so easy to get the kind of return on any investment, I got from that first commercial property.
Once you have identified the risk and growth in the property you can apply different management techniques in order to lower the risk and increase the growth of your investment in that specific property.
My Property Pro Investment Program? incorporates The Formula For Riches in a property investment system. Using the system it is possible to identify the risk and growth potential in any kind of property investment, anywhere in the world, and in any location, within minutes.
It is possible to improve the growth, as I mentioned, from 13% to 100% or more, just as an example. The most important thing is that you can measure and minimize risk, and also measure and increase growth, as per The Formula For Riches.
In other words, you are in control of your investment. And that’s when the whole picture changes! From being grateful for an investment that only just limps past inflation, to getting real growth.
From resigning to the idea that you will have to work your whole life, to see that you can retire within a matter of years, this is what real investment according to The Formula For Riches can do!
The Next Truth.
Things are not always as simple as they seem. Although my money began working for me, I soon realized there were other factors playing very important roles in investment. And I needed to know what these factors were because otherwise, I might do something wrong without knowing it.
This is why I say that the number one reason why people are not financially successful is that they are financially ignorant.
Let me explain. I have observed numerous people who nurture anxiety and discouragement because they don’t understand how to make their lives more prosperous.
Creating financial wealth is not about how hard you try, or how intelligent and knowledgeable you are. Or how lucky. Or how driven. Or how well-connected. It is about being effective in doing the basics right consistently. It is these fundamental principles I explain in my Wealth Creation Mentoring Course?.
What I teach my students is that by following a system anyone can learn to live his or her life in freedom and not as a slave.
Why do I like systems and what are they?
The Formula For Riches and the Property Pro Investment Program? both cut out emotion and fallible human judgment. They cut out the sales and media hype, the gossip and the nonsense. They cut out the guesswork and the uncertainty. They cut out the confusion and the haziness and the contradictions.
They give you a system that has been proven over and over, and anyone can apply it and be successful.
This is the reason why I can guarantee success. It’s the reason why I offer the guarantee in the beginning of this book. The Formula For Riches is just a system anyone can follow to become rich.
All my systems are guaranteed simply because incorporated into them is The Formula For Riches.
A recipe is just another word to explain a system. If I want to bake an apple pie, I first have to find out who has the best apple pie recipe. I then follow that recipe to the letter. If the recipe is correctly formulated and I follow the recipe properly then I have a 100% chance of successfully baking an apple pie.
If I am a master apple pie baker then all I have to do is to document the process (or perhaps get someone else to do it for me). Once I have the process (called the recipe), I can give that process (recipe) to anyone and if they follow that recipe they will get a perfect apple pie.
But the recipe is the trick. I can have the recipe, I can study the recipe but if I do not follow the recipe I will not get an apple pie.
So a system is a process or recipe, which produces results that are, (1) predictable, (2) consistent, and (3) repeatable, meaning that it works the same way, over and over, and produces the same results every time.
I get excited about my Universal Formula For Riches s-y-s-t-e-m because of it...
? S - Saves
? Y - Your
? S - Self
? T - Time,
? E - Energy and
? M - Money
The Formula For Riches is not the only system I have created – but it is the most powerful once you understand and apply it. I have created several other systems and all of these systems have only one purpose: to help ordinary people become Wealth Creators.
But there is one condition, you must want to.
I can give you the best apple pie recipe, but if you do not want to bake an apple pie or if you do not like apple pie, then it will do you no good to buy the recipe and never use it or use it in a “half-baked” fashion.
The same is true for Wealth Creation. Unless you want to create riches and abundance in your life, no one can help you. You are in fact the master of your destiny.
What you will find, is that embedded in the core of all the educational systems that I have developed, is The Formula For Riches.
You will find it in the Property Pro Investment Program?, the Retire Quickly Program?, and the Wealth Pro Program?.
Why did I do it this way? Simply because if you use the systems as thousands of others have done, you will save yourself time, energy, and a lot of money.
Think about it. I started from scratch and have spent to date twenty years developing these systems. I have spent thousands of dollars on educating myself. Does that mean that you will need to spend the same amount of time and money to get there? The answer is no, why would you re-invent the wheel?
One of the principles of wealth creation is to use other people’s time, effort, and money. If you can buy a reliable system, for a fraction of what it originally cost to develop, then you are accelerating your wealth creation. Condensing what you need to learn from twenty years into twenty months or maybe twenty weeks or twenty days! Why not? It will depend on your own motivation.
Not only will such a system save you a lot of money but it will also help you to get enormous financial growth on your investment without taking risks.
The Formula For Riches consists of a systematic process that works every time, over and over again. It cannot fail if you follow it to the letter.
If you want to get more growth simply apply the formula. By applying The Formula For Riches you will discover that you will always get better growth on your investment by simply lowering your risk.
It's that simple.
Why do I develop educational systems?
The reason for this is that through systems an ordinary person can become an extraordinary person. An average salesman can become a super salesman and a good company can become a great company.
I have learned that one extraordinary person is worth a lot more than 1000 mediocre people.
I know that software programs (systems) are the solution to people's problems. But I have also experienced that there are two systems. The normal or average system (and average does not work for a great business) and intelligent systems.
If you can develop an intelligent system, you can train ordinary people how to use the system.
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Here is the trick: an intelligent system in the hands of an ordinary person will always produce intelligent and therefore extraordinary results.
The same is true for investments. You can teach any person the system.
Understanding the system can take as little as two hours, simply because The Formula For Riches is based on universal principles. Once you understand and begin to apply, you will get extraordinary investment results.
In order to grow the business, you duplicate the system. You can literally explode your business into a phenomenal business and your investment into an extraordinary investment and become financially free in a very short period of time.
What Entrepreneurs Should Remember.
Most entrepreneurs build a business around themselves. The business depends on them. If they are not there, the business will not survive. These entrepreneurs are very hard working.
The workload totally consumes them and the business runs their life. These entrepreneurs are not free. They are the slaves of their business.
To make things worse, if you are an ordinary entrepreneur there is a business factor that will always work against you, to keep you a slave. I call it the ceiling of complexity.
My experience is that entrepreneurs are normally excellent at what they do but almost always run into three serious problems:
Most entrepreneurs do not understand what cash flow is or how to manage it. They only know how to do what they are good at and before they know it, they hit the first obstacle which has almost always to do with growing too fast without applying the right financial principles.
Because they are growing too fast it leads directly to the second obstacle and that is the performance ceiling.
They are focused and because they are good at what they do they excel. There is however only so many hours in the day and one person can only do what he can do. Once you have reached that point you have reached the ceiling of performance.
There are different ways to increase your ceiling of performance but eventually, you will reach an optimum point. You cannot perform any better, no matter how hard you try. The only way to break this ceiling is to increase your fee or to appoint more people in order to help you and in doing so you soon run into the next problem.
By appointing more people you can overcome the problem of performance, but you can create a new set of problems. Over a period of time your focus shifts and before you know it you are a manager – and you invest your time, effort, and money in managing people.
One day you wake up and find you are appointing people to manage people and then you appoint more people to manage the managers.
This is a natural transformation in a business but also a dangerous time as it is normally at this stage that you hit the ceiling of complexity. Now the business is running your life. You are no longer running the business.
Ask yourself: “Does it feel as if you are the only one who really cares about the business and that the people working for you are doing less than you expect of them?”
If your answer to that question is “yes” then warning lights should go on.
How can entrepreneurs avoid this problem? You need to create a life, a business, AND investments that work for you. You have to make sure that they do not change somewhere along the way and become traps or treadmills.
You need to find solutions to the ceilings of cash flow, performance, complexity, and growth which can so easily take the joy and the productivity and the control out of the business.
The only way you can create a life that works is if you escape from doing the routine work which is keeping you from experiencing the abundance of life. You must build intelligent systems in order to eliminate the “routine and keep busy” stuff in your business.
You escape that by creating an intelligent system that takes care of the tyranny of routine and gives you the freedom which effectively saves you from having to manage the drudgery.
Everything runs on a system.
Life is a system.
An atom is a system.
The universe is a system.
Our body is a system.
The relationship we’re having right here is a system.
I run all my ventures on systems. Because the systems work, I am free, not just financially but also in terms of the number of hours per day I can spend doing what I feel like doing. I have an astonishing amount of free time when you consider my income. But at the same time, I know what is going on in all of my businesses on a daily basis.
I am lucky that I have great partners when it comes to building intelligent systems. One reason for this is that our relationships have been structured correctly in a way that avoids the “expert” problem. My partners are not incentivized to drag their work out over as long a period as possible.
It is also structured in a way that avoids the “employee” problem (lack of motivation or sense of responsibility and ownership). The fact that my partnerships work is not a piece of luck, but the result of a certain system or strategy when it comes to my working relationships!
As a result, I am happy with what we are achieving in life.
I also know that we can do a lot better – and I am glad to say that I see that everyone on the team is doing more than is expected of them to make the systems the best we can make them.
My Wealth Creation Mentoring Course incorporates twenty-five years of experience, and I am glad to say, our intention is to make it the best Wealth Creators Mentoring Course in the world.
Not only is the mentoring process unique but we have also developed some unique systems during the financial challenge. My software team is extraordinary, and some of the “behind the scenes” engines they have developed are the most sophisticated engines available.
Is it difficult to follow The Formula For Riches?
Yes and no.
No, because the formula is simple and based on universal principles. It’s not rocket science. Yes, because although The Formula For Riches is simple it is not always easy to follow.
Firstly because you are going against conventional wisdom and most people will not understand or agree with you. Secondly, you will have to take action because in the application lies the understanding and the effectiveness. Without action, the Formula cannot work.
I am pro-self-education. You need to learn what you must do and then the most important step is to apply the knowledge. It is of no avail reading about something and knowing what to do, but not doing it.
The most difficult part is to actually apply what you know, and then to keep on doing it, in other words, to be persistent to the point that the application of the action becomes a habit. In creating wealth it is better to do a little bit regularly than a lot only once.
How do you eat an elephant? One bite at a time! This simple principle is applicable to Wealth Creation. Do the right things consistently.
When I talk about wealth I refer to it in the bigger scheme of things. I include peace of mind, happiness, fulfillment, and success. Personally, I think we all are our own worst enemies. We limit our thinking.
We allow others to influence us by telling us what we can and cannot do. We allow them to control our thinking and our belief system when it comes to creating wealth and money. And this we must guard against.
Why did I take on a challenge to change 11 cents into more than $1,400,000 in less than two years?
I find a lot of people just won’t believe me when I tell them that you do not need money to make money. So I set out to prove it. I decided to invest a tiny amount and make a million or more. And I structured my investment in such a way that I invested only 11 cents.
I see that people do not know the power of a dollar. And so we do not get our full value for the money we earn. Can you imagine what we could do if we all had the ability to take just one dollar and convert it into more than $1,400,000 in less than two years? What do you think would happen to the economy of every country if each person in that country could learn to do the same?
The world would be a paradise.
The good news is that it is possible. You do not need a brilliant mind to do it.
You do not need a lot of money. I set out on this journey with less than one dollar to prove that it is possible.
You do not need to take any risks. In fact, I am one of the most conservative investors you can find and I don’t like to take risks with hard-earned money.
What I have done, and what my mentoring students who have followed this challenge week by week will confirm, is to apply the basic universal principles of The Formula For Riches that is to make one dollar work for me.
Just to make sure you understand the last sentence, I want to repeat it. I used basic universal principles to let the one dollar work for me.
These basic universal principles are incorporated in The Formula For Riches.
The problem is it is usually the other way around. We have been trained to work for our money.
We make a lot of money during our lifetime, only to retire “poor” at the age of 65 because we have never learned how to get our money to work for us.
There are two golden rules about making money.
The first rule is you can make excuses or you can make money but you cannot make both.
The second is that you have two choices, money is your slave or you are the slave of your money. There is no middle way.
If you work for your money – then you are the slave to money.
If your money works for you – then the money is your slave.
How do you tell which is which? Easy - if you have been working for more than five years and you cannot afford to stop working and still maintain your standard of living then you do not know how to get your money to work for you. In other words, you were trained to be the slave of money.
The Surplus.
In order to get your money to work for you, you must first have some money. I call this a surplus. This is over and above your expenses. Unless you have some surplus money to work for you it is not going to work, because you will need that which is not surplus to maintain your standard of living.
Let me quickly define what a surplus is. You take your income minus living expenses. If there is something left after you have deducted your living expenses from your income it is a surplus.
If there is not enough to pay for everything we call it a shortfall. In other words, most people cannot begin the process of becoming an investor, simply because they do not have a surplus to start off with.
They take the money they cannot really afford and invest it, but before the investment begins to work for them they withdraw the investment (principal) or the gains on the principal.
In general, people do not give their investment a chance to become productive.
As a financial planner, I saw that people would invest in some kind of a savings plan but at the same time, they have a personal bank overdraft.
What they are doing is not investing or saving because as far as I am concerned they do not have a surplus, to begin with. They live in a fool’s paradise. It is like borrowing from Peter to pay Paul. They live in debt, and debt is what kills Wealth Creation.
It also makes fortunes for financial institutions, which is why so many people do not understand this simple principle and continue to believe that debt is normal and not a problem.
You cannot begin to invest unless you have a surplus.
In order to become a Wealth Creator, you must have a surplus to begin the process of Wealth Creation. This is what The Formula For Riches says.
There are two ways to create a surplus:
? Become an entrepreneur – that is, someone who has the ability to take an intangible, such as an idea, and turn that into money, or
An investor is not necessarily an entrepreneur. To become an investor you only need to have a surplus. Anyone can become a Wealth Creator, as long as your income is more than your living expenses.
The reason I teach people to become entrepreneurs is that there are ways to increase their surplus without taking the risk of losing their money. The more surplus money you have, the easier it will be to start the process.
But as you may have realized by now, the amount is not the criteria. In fact, you should not put too much money into a business, or you break The Formula For Riches. All you need is a surplus in order to initiate the process.
Another reason why people do not believe that their money can work for them is that they do not understand how to make it do so. Most people hand their money over to financial institutions with the idea that the financial institution can grow their investment, even though they never yield above-average results. The majority of growth goes to the shareholders.
This is why the public cannot expect their money to work for them when they hand it over to a financial institution. The institutions have total control over the money, but they take no responsibility. They put your money to work for them, not for you. How can you say your money is working for you if it is not under your control?
If perhaps you did not grasp what I have just said, then I urge you to go back to the previous section and reread it until you understand what happens with investment money. The moment you hand your money over to any financial institution, your money does not work for you.
Money is the slave of only one master. Money works for the person who is in control.
Once you have a surplus, you can start on your road to financial success. For the next step, you need a simple system you can follow to invest in assets, with the potential for it to work for you. The harder these assets work, the wealthier you will become.
In order to become super-rich, you must learn how to turbo-boost your surplus. You cannot turbo boost your surplus unless you can manage the risk and growth on your investment. In other words, you must take full responsibility for your investment.
By taking small steps in the right direction, you will be amazed at the incredible difference it can make to the amount of wealth that you accumulate in your lifetime. At the same time, you will experience the benefits in the life of your family.
You will truly experience what it means when I say that money is your slave. It can make life a lot more enjoyable.
Free your mind, and your imagination – and enjoy feeling what it would be like to have a million dollars! That’s right, $1,000,000 two years from now - starting with only 11 cents!
Before I explain how to minimize risks and increase your growth we need to start by looking at The Formula For Riches.
Once you understand it we can start with the implementation so it can benefit you.