ALPHABETS OF WEALTH BUILDING

Have you heard of wealth building? How many of you know exactly how to build your wealth?

Amid all the misconception about wealth creation and the many mistakes, I would like to share with you some of my ideas and knowledge about its true meaning and the effective steps to achieve wealth. Trusts you can make wise use of them or tailor-make them to suit your own circumstances.

To grow wealth exponentially, it’s always important to grow your perpetual income than to cut expenses, just as it is more important to grow your spirit than to cut your day time dreams. This will ensure that you are open to all possibilities.

It is also my intention and passion to coach and assist people to build their wealth to ensure financial independence so that they have better control of their life. By doing so, we can guarantee a better tomorrow. In this regard, self-accountability is the key. No one can help you to achieve it if you do not desire to do so.

Learning how to fish is important; it is the only way of assuring that we have a steady supply of fish for the rest of our lives.

Definition of WEALTH

To create wealth, it is vitally important to understand its definition. Wealth is not equal to richness. Richness is a relative and subjective term which has no definite meaning.

Wealth is not equal to income. Big income does not guarantee wealth generation; it is very much dependent on the person and how he consumes it.

Wealth is basically the residual income after all the expenses. As such, wealth is the Net Worth that is accumulation of your residual income over time. Therefore, to create constant and lasting wealth, you need to add value to all your resources; be it financially, mentally, knowledge, skill, expertise and networking, which are used to create added residual value over time.

Let’s begin with ABCDE. You can use the following methods and models to achieve your destiny.

A. ACCUMULATING WEALTH

The law of accumulation says that everything great and worthwhile in human life is an accumulation of abundance of tiny efforts and sacrifices over time that nobody ever sees or appreciates. It’s like a snowball. A snowball begins tiny, but it grows as it gathers more tiny snowflakes and continues to grow as it gains momentum.

Not all assets are of equal value in promoting long-term wealth. The real key to creating wealth is highly dependent on how much you spend to acquire assets which really appreciate in value and thereby increase your personal net worth over time.When you begin to save money, it sets up a force field of energy and it triggers the law of attraction. Consequently you begin to attract to yourself even more money to grow your savings.

Otherwise, if you spend on things that depreciate in value, then your wealth will decrease. Therefore, the more money that is spent on Wealth-building Assets, the faster you will achieve a higher net-worth. One good example is good properties which appreciate over times.

To expedite the process, you need to learn and earn at the same time.

B. BY MANAGING THE WEALTH

Once you have created several wealth building assets, you need to comprehend their nature of trade and risks profile so as to take full advantage of their potential and to grasp the highest possible yield at any time. Needless to say that you need the skills and know-how which you should acquire by reading, analyzing and attending courses etc.

You need to monitor each type of wealth-building assets in term of its return, growth in value and potential value vis-à-vis its risks.

You may also need to purchase other type of assets out of necessity, for entertainment or other reasons which do not add value to you directly, so as to facilitate your work or which may not generate more value than their cost. Some examples of non-wealth building assets are:-
- TVs
- Washing machines
- iPods

Naturally, the higher portion of wealth building assets, the faster you will grow your wealth. You need tools to measure, monitor and manage it to grow it at its optimum level and fastest speed.

C. CREATING WEALTH

The key here is creating as much as possible your residual income after the deduction of all expenses incurred to generate that income. I re-emphasize that it is NOT the quantum of the income, but its residual income. Residual income is King.

To do so, you have to control your expenditure, at the same time you create the residual income. You have a choice to spend the residual income away to acquire a higher lifestyle. Ego, greed and peer pressure can dictate how you spend or use it to create more wealth.

It is a subject that many of us fantasize about, but only few will be able to see it materialize in their lives. To build perpetual income, you have to be a “pipe builder” rather than a “bucket carrier”. This is because the former is a one-time job till the pipe is ready, requiring minimal maintenance work thereafter; whereas the latter is an ongoing and unfinished daily work.

No doubts debts can kill. However, if you know how to use them to generate income which exceeds the cost of borrowing and generate positive cash flow, then, it makes sense for you to leverage on debts to generate more residual value for you.

D. DIRECTION

“Go confidently in the direction of your dream. Live the life you have imagined.” – Henry David Thoreau.

Direction is more important than determination. It guides you to focus and direct all your resources, energy and time to generate the best yield in the long term. It may not necessary be linear progression, but ups and downs. The temporary setback is not to destroy you, but to make you stronger so that you can stay focused and ride the waves to enrich yourself. You need a wealth compass to guide you to the destination you want. Once you are clear of your destination, you may use creative visualization and imagination to bring you there. It is much easier to let your vision, mission and passion pull you over the obstacles.

As such, you must stay calm, redirect to realign to the new realities. This will ensure that you need not fight against the waves.

E. EVERYTHING COUNTS

“When you are ready to pay attention, everything is your teacher.” Ezra Bayda.

Until you dare to move out of your comfort zone and gather the experience from making the mistakes, it is not possible for you to grow and become capable of earning the kind of money that you desire. Hence, never let the fear of making mistakes hold you back, and the law of accumulation will make every move count.

Everything you do counts. When you go to a course, you get up early and you work to build the pipeline, it all counts. It’s all going to the positive side of your ledger.

In summary, everything affects everything else. Some things affect us more than others, but everything we do has an effect on everything else we do. Not to think so can be considered naïve.

I hope that I have given some good understanding on the true meaning of wealth and the simple ABCDEs of Accumulating, By managing its growth explosively, Creating wealth speedily, Directing all your resources effectively and Everything counts. This is a very basic and fundamental framework for everyone who intends to build wealth and it is vitally important to get this right in the first place. 

In the end, you need to align with your desired life purpose and let it lead you to achieve your ultimate goal. So stay focused on the big picture without losing sight of details in life.

Always remember that a man’s world is the projection of his mind. When his mind is weak, he sees a problem. When his mind is balanced, he sees a challenge. When his mind is strong, he sees opportunity.