When it comes to “going somewhere” and “doing something”, what seems to be a straight path isn’t going to be so.
This applies to almost everything in life.
If you are looking to create wealth, it applies to you even more.
After learning, analyzing, and looking into real stories of "Self-Made" men and women who paved their own path to creating wealth, a few things stand out (if you look closely enough):
The rich focus on:
- Creating wealth and how they will drive new revenue sources and equity.
- Improving skills, learning, attitude, and discipline. (This goes a long way to help you in your journey to create wealth).
- Being frugal is a core value of self-made wealthy people.
- The rich never got “rich” overnight. They put in work, paid their dues, and earned their stripes (we aren’t going to consider luck, inheritance, and wealthy spouses)
- Your habits, your proclivity to take action (and the speed with which you do), and what you do on this journey to creating wealth will determine the final outcome.
- The rich take risks. They invest. They network. They reach out. They hustle.
- Hate getting up in the morning to put in work.
- Absolutely love buying things (like cars, extra houses, clothes, and what not) with money they don’t own just to impress people they don’t even like. Meanwhile, they call these toys “assets”. All the while, they’ve been hoarding “liabilities”.
- Do things that they shouldn’t be doing, if they wanted to create wealth like trading their time for money rather than being in an incentive based career.
- Are averse to risks.
- Don’t bother saving and investing money for as long as they should.
In short, ordinary people get ordinary results.
Be Extraordinary and do what the rich do.
Here’s why creating wealth isn’t for the ordinary folks:
Procrastination & Inability to delay gratification
It’s strange how things work with most people, worldwide. If there’s work, labor, physical effort, or mental effort involved, “procrastination” will typically kick in for most people. We just put things off with “We’ll deal with it later” or “Fix it when it breaks”.
For things that we like -- buying a car, indulging in shopping, buying “stuff” -- we suffer from an inherent Inability to “delay gratification”.
According to Brain Tracy [http://www.briantracy.com/blog/general/5-reasons-why-most-dont-become-wealthy/], these are some of the main reasons it’s extremely hard for ordinary folks to move forward.
That thing called “time”
Self-made wealthy folks deal with time differently, and in many ways. They understand, perceive, and deal with time radically different from most others.
Michael Hyatt points out [https://michaelhyatt.com/how-millionaires-manage-their-time.html], after interviewing about 130 millionaires, that the truly wealthy people:
- Get everything mundane and repetitive out of their head.
- Guard time like it’s money: Do, delegate, defer, or delete,
- Have a purpose and plan their days (and hence weeks, months, and years) effectively.
- Take advantage of time to bring in the power of compounding interest and returns
- Learn to say “no” more often than they say “yes”.
If you want to be rich, start really treating time like money.
Smart Money Management
The rich are also different when it comes to money management. They invest where ordinary folks don’t. They take calculated risks. They give money time to grow.
Plus, they eat out less, spend less on what they don’t need, they dress like they don’t care (Mark Zuckerberg and Steve Jobs, anyone?), they live frugally, they don’t show off, and they invest long-term.
The rich often have financial advisors but they do their own research before they commit. Rich people don’t trade time for dollars and if they had to, they’ll make sure they spin up multiple sources of income so that they at least have the flexibility (or the cushion) to manage risks if they had to drop the ball on any one source of income.
The wealthy folks invest in assets that give them cash flow (rental income, royalties, dividends, and interest). Ordinary folks buy everything necessary to “keep up with the joneses”.
The rich have automatic investments, long-term discipline, and they understand the difference between needs and wants. As Jeff Steinmann writes on LifeHack [http://www.lifehack.org/articles/money/how-millionaires-manage-their-money-differently.html], self-made rich people ignore “instant gratification”, “invest smart”, and “take advantage of taxation benefits”.
The Hustle of The Rich
TTake one look at any self-made millionaires or billionaires and you’ll immediately notice how hard they work:
- They read more than the average adult, on top of everything else they do.
- They wake up earlier than everyone else.
- They begin their day before everyone else comes in, and finish after everyone else is long gone.
- They hustle. Make things happen. Negotiate hard. Strike deals that they benefit from.
- They are at work all the time (and they do know when to stop). They keep themselves busy as long as they have to.
- They make everything count: time, money, network, and their skills.
Meanwhile, most of us don’t bother reading. We get to work when we have to (and because we can’t help it). We don’t like the hustle. We procrastinate to make things happen. We hate negotiation (including bargaining). We take what we get (instead of making deals). We can’t wait for the next weekend to roll in.
Creating wealth is no child’s play: It takes perseverance, discipline, a particular set of habits, attitude, patience, and a huge amount of work.
How are you making your life count? What does your path to create wealth look like?