Six Decisions You Need to Make to Get Rich
© 2002 By David Batchelor
Step One: Decide to Be Rich
"The only difference between the rich, poor and middle class, is
the kind of lifestyle they want. You don't have to be psychic to
tell a person's future. If you listen to the words a person uses
they will tell you their future."
Word's are a person's most important tool. I believe that the
words we speak and the words we think ultimately become the
world we live in. Just as the Bible says, "the person that
guards their lips guards their life, but they that speak rashly
will come to ruin". And "Death and life are in the power of the
tongue".
Listen to different people's words. You'll notice that poor
people often say:
"I just want enough money to pay the rent."
"I need a few dollars to get to the next pay day."
"After I pay my bills, I don't know how my family can afford to
eat."
People who used words such as these, often focus only on
financial survival. Generally a person who thinks or speaks
words such as these are constantly fighting for financial
survival, regardless of how much money they make. The middle
class use different words because they have different ideas
about how to use their money:"
"Our home is our most important asset and our largest single
investment."
"We're setting a few dollars aside every month, so we can afford
the down payment on our dream home."
"We're saving money for our children's college education and our
retirement."
You'll notice that the middle class focused on comfort. That is
why so many of them say, "I don't want to be rich. I just want
to be comfortable."
"The rich are rich because they are not focused on day-to-day
short-term survival, or the expense column as the poor are. Nor
are the rich focused on comfort and the acquisition of
liabilities using credit, as the middle class is. The rich are
rich because they focus on the long-term acquisition of assets..
assets such as stocks, bonds, businesses and income producing
real estate. Many times the rich will forsake meals, a steady
pay cheque, a vacation, or the comfort of a nice home, to build
or acquire real assets." So decide to be rich, even if you are
broke and penniless today. there is a difference between being
poor and being broke. Poor is a state of mind where thoughts
such as "I can't afford it" or "Live below your means" come from
Being poor is eternal but being broke is temporary.
I think it's important to explain to you the difference between
Be-Do-Have. "Be" is the most important part of the three word
formula. Most people want to "Have" what the rich have, but they
often are not willing to do what the rich "Do" to have what the
rich "Have". So whether you have money or not, it is important
to "Be" rich if you decide to do so, which means being willing
to make being rich more important than merely surviving
financially or being comfortable.
Step Two: Decide What Kind of Money Problems You Want
There are only two kinds of money problems: not enough money or
too much money. Unfortunately, the kind of money problem most
people know is not enough money. "Most people know how to work
for money, but they do not know how to have people and money
work for them." Most people, when they receive any excess money,
spend it foolishly or just park it in the bank. So decide what
kind of money problems you want.
Step Three: Write Your Plan and Follow It
After choosing between being wealthy, poor or middle class, and
then choosing between too much money or too little money, it's
time to write your plan. If you have chosen to be financially
independent, even though you are broke today, and have decided
to have the problem of too much money, read on.
If you do not plan to be financially independent, then you need
not read any further.
Here are a few basic goals:
1. Change the characteristic of your income. Start a part-time
business.
2. Change the characteristic of your expenses. Convert personal
expenses into business expenses.
3. Place your business inside a legal entity.
4. Have your business buy your assets.
5. Harness the power of reinvesting.
If you're willing to be a little uncomfortable to become
financially free and retire early, develop your plan - even
though you may be broke, but not poor, today.
Step Four: Choose Your Friends and Partners Wisely
One of the reasons the rich get richer is because they spend
time with other rich people. It is important to know if a
person's aspirations are to be rich, comfortable or simply
survive. Friends who merely want to be comfortable or survive
will not understand why you want to be rich and may
unconsciously pull you down.
Step Five: Give Yourself Time
It takes time to build a business as well as an investment
portfolio. Building a business is not the same as getting a job.
With a job, you expect to be paid soon after starting work. With
a business, you may not be paid for years, if you are paid at
all. That is why I recommend keeping your daytime job and
starting a part-time business.
It is said that 90% of all businesses fail in the first 5 years.
In my opinion, there are two main reasons for this sad
statistic. One reason is lack of education and experience.
Business is not something you can learn in school. Business is a
combination of formal education, experience and guts.
The second reason is lack of money. We have heard the old cliche
"Killing the goose that lays the golden egg". When starting a
business, many people kill the baby-goose before it's old enough
to lay the golden egg. In other words, most small businesses are
undercapitalised, which means the new business owner tries to
support him or herself and often a family on a business that is
not yet up and running. So the business is drained of cash when
it needs it most to grow.
Step Six: Start Small, Dream Big
Many people start small and stay small, simply because they have
small dreams. In my opinion, big dreams are important because
they possess ingredients vital for success: hope, desire,
passion, energy, vitality, faith, drive, inspiration and
creativity. These ingredients make life worth living. So dare to
dream big. Dream of all the wonderful things this world and life
have to offer. Write your plan on how you can have all your
dreams come true and look at the plan every day. Talk to people
about your dreams, even those who criticize them. Then use their
criticism to make your desire even stronger.
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