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Wealth builders live modestly by spending less than they can afford (in money, time, and energy), so they can invest the difference for greater value in the future. Read below the 7 key principles you can apply to grow your wealth this pandemic era.
#1 Earn Your Wealth
There’s no way you’re going to get to what you want and where you want to be if you’re not trying to get there. With money, this is pretty darn straightforward. You want money? Get a job. Start side hustling and doing side projects to make more money. If you want to grow wealth, you have to earn some income. There are many ways to earn more income, and you need to find the most that you can do and get to work.
#2 Bring in More Than You Spend
As things reopen, it is fine to want to take advantage of the new/old opportunities in front of us but remember that it is easy to begin spending a lot more money, very quickly. Unless you are in the stage of life where you want to reduce your assets, keep your eye on expenses as the opportunities for spending increase.
#3 Save More
The second rule to getting rich is saving. It’s not enough to just earn money – you have to save it as well. The more income you have, the easier it is to save more. But even on lower incomes, you can still save. Having an inflow of income alone just doesn’t cut it. You have to save.
#4 Give More Value Than You Take
Adding value to the world by giving more than you receive makes everyone better off. That’s how you build true wealth. You improve others lives by improving your own.
By giving more value than you receive, success becomes a measure of how much you’ve given. The wealthier you become, the more you are giving to others.
#5 Apply Leverage To Build Wealth
Leverage allows you to build more wealth than you could ever achieve alone by utilizing resources that extend beyond your own. It allows you to grow wealth without being restricted by your personal limitations.
Building wealth requires you to work smarter by applying the following principles of leverage:
- Financial Leverage: Other people’s money so that you’re not limited by your own pocketbook.
- Time Leverage: Other people’s time so that you’re not limited to 24 hours in a day.
- Systems and Technology Leverage: Other people’s systems and technology so that you can get more done with less effort.
- Marketing Leverage: Other people’s magazines, newsletters, radio shows, etc.
- Network Leverage: Other people’s resources and connections so that you can expand beyond your own.
- Knowledge Leverage: Other people’s expertise, talents and experience so that you can utilize greater knowledge than you will ever possess.
#6 Put Your Money To Work For You
You need your money and the power of compound interest to work together over time to grow wealth for you. You need your money to grow and earn you more money. You need to start building income streams with your money. The goal is that your hard work up front can help you build passive income streams for the future.
#7 Surround Yourself With Smarter People
In order for you to grow your wealth, you need to surround yourself with people smarter than you in all aspects of your life. Look for friends that are making you a better person. Find a mentor that is doing what you want to do and is killing it. If they don’t have the bandwidth to meet you, just watch them and see what they do.
