Have you ever asked yourself the question, “How can I become rich”? You’d be surprise at the number of people that never ask the question; for fear that they may be aspiring to a goal that they may never be able to reach.
The way the rich get rich and richer, is not by working:
- for money, but by getting money to work for them.
- for people, but by getting people to work for them.
- within systems, but by creating systems that will work for them.
Photo by Linus Bohman via Flickr
Most people find that wealth eludes them, only because they have not got a good wealth creation foundation in place. Programmed by the education system which inoculates them against the creation of wealth they automatically get into working for money, and find it difficult and if not impossible to escape its deceptive trap.
How a person thinks about money is a determining factor of if they will ever be wealthy or not. Once a good wealth mindset is in place, you need to erect Wealth Pillars that will support your Wealth Empire and protect it against economic and other storms of life.
For your Wealth Empire to stand strong and tall, you need to employ and invest in some or all of these Pillars of Wealth. These pillars are simply wealth creation vehicles that you can use to achieve your financial goals.
Pillar #1. A Great Career
Having a great career is a good stepping stone towards building your empire of wealth; as it could supply you with the cash that you need to invest in other ventures, and help you keep your personal affairs running, while you pursue the creation of wealth.
Some people create their wealth part-time while still pursuing their career, by investing in real estate, stocks, shares and bonds, creating intellectual property, or in their own business.
Some people work at the wealth creation with the aim of eventually replacing their job, while others are happy with what they do and just want a another source of income, to help build a retirement fund, improve the quality of life for their family, save up for their children’s education, or engage in philanthropy.
If you are looking to create wealth, don’t resent having to work a job, and don’t treat you job as an all in all pursuit, treat it as a stepping stone, a vehicle to help you get to the next stop on your wealth creation journey.
Pillar #2. Real Estate – Property and Land
Real estate is one of the oldest forms of investment, practiced by peoples of all times. The land owner or the landlord was king. Wars are fought and families split up over ownership of property and land. It was known that whoever owned the title deeds of the property or the land owned the wealth.
Income generated from real estate is of twofold:
- Rental Income: Income that comes from the rental of the property or land. This generally helps with the day to day management of the property, and provides a regular income from the owner to draw on.
- Equity: Income that comes from the property appreciating or growing in value overtime. This generally grows over a medium to long term period, and produces substantial returns on the money originally invested. Equity was what made the landlords rich and made them kings of the land.
Pillar #3. Intellectual Property
Your intellectual property is a great asset and you must see it as that. The creations of your mind — music, books, paintings, articles, papers, ideas and inventions of all kinds, all come under this umbrella and can be given commercial value if you know how to.
Your intellectual property has the potential to continue to work for you and produce an income for you as long as you live. Some have their intellectual property grow in value even as they grow old.
Pillar #4. Building Your Own Business
When you spend your life working in someone else’s business, you walk away after 40 years or more, with no part of the business belonging to you. You’d have built skills and expertise which you can capitalize on if you really know how, you’d have also built mentor equity, knowledge and experience that could be packaged and shared at a price. But most of the value that you’ve built in the business is owned by someone else. You were earning a wage, while they were creating wealth.
By building you own business you are building value that can be tapped in to, and can be funneled into other investments or ventures. Apart from drawing an income from your business year after year, you build equity and value that can sold off at a good price, or could be handed down to your children, and even their children too.
With your own business you can leverage your earning by not only earning from your own efforts but by earning from other people’s efforts too. You can become a contractor or an agency and earn a percentage of the earnings made by other people. For example employment agencies, tutoring agencies, nursing agencies, and cleaning agencies use this way of making money from other people efforts, as a business model for leveraging their wealth.
Pillar #5. Investing in Other People’s Businesses
People invest in the same things but for different reasons.
Some people may invest in stocks, shares or bonds; because it’s a way multiply their wealth. Many people, who want to own a business, but do not want to be tied down with the chores of or running one, may choose to buy stocks, shares in a business, or several businesses.
Some people may want a quick and high return on their investments and invest in stocks and shares. While others want a hands-off approach, and want an investment can grow safely overtime, so they invest in bonds instead.
Pillar #6. The Internet
In the last decade, the latest breed of Millionaires has been created via the Internet.
With the advance of the technological age, information is king. Anyone who is willing to invest the time and effort can develop, package and market their knowledge and creative digital products and sell them at a great profit, in great quantities, over a short period of time.
Internet technology has made it easier to research and reach your target market and presell to thousands of warm and ready to buy customers, at the same, without even getting out of your pajamas or leaving your bedroom.
This market is accessible to all, as the entry cost into this market is low. With a great mentor, a good and reputable training program that will give you a sound knowledge of how the internet works and an excellent tool to help build your own online business, you’d be laughing all the way to the bank.
Pillar #7. Multi Level Marketing
Multi level marketing is another great vehicle for creating wealth in the 21st Century.
It’s been dubbed by Robert Kiyosaki, as “The Business of the 21st Century” and by Robert G. Allen as “The Ultimate Money Machine”.
The reason why MLM’s have such a great income generating potential is because they employ leverage, this magnifies your efforts. Leverage allows you to earn, not only from your own efforts, but from the efforts of those in your team. MLM businesses also have the potential for making it possible to earn a residual income.
Multi level marketing is simply a marketing strategy, which any business can use to market their products or services. Many people see the business and its marketing strategy as one and the same thing; this shouldn’t really be the case.
Evaluate the business on its own merits, and not only on the basis of its strategy for marketing its wares.
Contributor’s articles are written by members of the personal finance community. Each article was reviewed Moolanomy’s editorial team before its publication.