Whether or not you were born into wealth, but yet you want to know how to get rich, there's only one answer: Learn to become an entrepreneur.
Step number 1 on that journey is to make the commitment to become a producer, not a consumer. Producers spend their doing things that accumulate wealth while consumers do the opposite, they give their wealth to another person.
So where do you begin? By cultivating the right daily habits practiced by debt-free people–which happen to overlap with the producer's mindset.
Restraint compromises of patience, dispassion, and most importantly self-control. It's the ability to endure every temptation that comes by – the best example would be impulse buys. Fobes utilises an example of a man who takes public transport for a couple of years, in order to fully pay for a brand new car in cold hard cash.
Obviously, a man who really practices restraint may take things somewhat a bit extreme. Choosing never to spend too much at all on something like a vehicle that will ultimately drop in value and become a financial liability. Rather than investing in assets that will consistently produce positive returns.
Defined as "the philosophical theory that experience is the source of knowledge", experientialism is used here as a juxtaposition with its opposite–materialism. You've probably come across someone who'd rather spend on experiences such as travelling, than a high-end branded handbag.
Individuals who able to adopt a producer's mindset tend to appreciate quality and possibly even lavishness. In spite of all that, they're to keep their distance, and they're also able to comprehend that not very many material things last long and spiritually nourishing.
Does frugality simply mean being a cheapskate? Not exactly. It's true that producers live beneath their means. Because by definition, you're already living below your means if you're debt-free. However, this also includes a strong will to discover deals and negotiate.
Fobes for example, mentions about how one women buying a television, managed to get a discount just by offering to pay in cash rather than her credit card. It works the other way Producers value the things they make by what other individuals will pay, instead of the sum that it costs them to produce.
To make things more clear cut, the most basic form of strategic thinking is to develop a habit of thinking before acting, or even speaking. You always need to have a concrete plan first. This translates into forgoing impulse buys as well as spending your money wisely, primarily where it creates a real and lasting benefit.
Those who have no debt can see further ahead and plan accordingly. They plan for the big purchase. They are ready for the unforeseen emergency. They set goals.
Finally, and probably most important, there's the habit of thinking about math. I don't know how it is that so many of us manage to miss this simple point, but our financial system is based on numbers.
So, true producers pay attention to the math. They educate themselves about basic concepts–starting perhaps with the time value of money and the power of compound interest. And in a world where those who want us to act like consumers often try to hide the calculations behind any deal, they work hard always to find it.
Well now you know how to you can build wealth and be happy doing it, but why not learn how to grow your wealth too. We have 2 upcoming exciting workshops by 2 of our world-class speakers this month.
He is the man who accurately predicted the previous four market crashes to the exact date. His name is Sandy Jadeja and will share proven trading strategies which best suit your needs and trading style so you can generate more potential profits for your trading business.
For more information on Sandy's workshop, Click here.
If you been wanting to start investing in property and have been putting it off for some time, there's no better time than now. Attend this property workshop hosted by the founder of PIP Holdings Pte Ltd, Mr Jerome Tan. He'll show you how you can become a millionaire even with an average income by building a multi- million property portfolio with little to no money)
For more information on Jerome's workshop, Click here.