 How
Anyone Can Become A Millionaire No Matter Who Or Where They Are In
Life
By
David
Cameron
Article extracted
from the book "This Book Will Finally And Certainly Get You Rich No Matter
Who Or Where You Are, Now, Guaranteed" by David Cameron.
We live in a culture where the cultural story tells us, "Go to school so
that you can get a job so that you can make money. And after working for
forty years you can retire and live well." It is the cultural story, we are
told it by our parents, friends, teachers, government ... But how true is
it today? The evidence on the ground shows us that work does not necessarily
equal wealth. Most people are not wealthy; they work long hours and have
little to show for it, that is the fact. And when they retire, they don't
usually get the rosy picture the cultural story tries to portray; instead
they get to survive on a meager pension. So what happened? Why is the information
we are getting not getting us the desires we are having, as far as wealth
goes? Why is it only a few people seem to get wealthy and financially free,
and why is it that the knowledge they seem to have appears to be so elusive?
The answer is simple.
The education system in place today was created in the 1800s. It was designed
to give people the skills to work in industries, offices, and so on. It teaches
working skills, not wealth-building skills. Even today, you will learn a
lot in school, but one thing you will not usually learn is how to get wealthy
and financially independent. All they tell you is, "Study these skills, get
a job, and you will get paid." If you go to school to learn to be a doctor,
they teach you how to be a doctor, but not how to create wealth. If you learn
how to be a chef, you will learn that, but not how to create wealth. Do you
see the picture now? The masses are not taught how to create wealth. They
are taught how to have the skills to work for others or for themselves, but
not how to create wealth and financial freedom. For all intents and purposes,
the vast majority of them are attempting to create wealth without a clue
of how it is done. There is nothing wrong with them; they are just not equipped
to achieve the goal they set. You always have to have the right equipment.
Here is a quick list of the main laws of accumulating wealth:
1. A part of all you earn is yours to keep. If you give away (spend, buy
stuff, pay taxes, whatever) everything that you earn and are left with nothing,
you will obviously not accumulate anything. So, ensure that, no matter what,
a part of all that you earn is yours to keep, not to be spent on bills,
purchases, taxes, or anything else that doesn't earn you more money. You
must start keeping (saving) at least 10% of all that you earn. Pay yourself
first.
2. Which leads us to the next point. Control your expenditures so that you
are able to keep at least 10% of all that you earn and you are able to live
without running out of money, the financial blood of any financial system.
The only way you can do this is if you know what your money is doing, where
it comes from, where it goes. You must start keeping records, specifically
a budget, an income and expense statement, and a cash flow statement. You
don't need to be an accountant at all, or even close. You can do all this
automatically with very affordable software such as Microsoft Money or Quicken.
3. Once you have started saving at least 10% of all that you earn, you must
make it multiply, bear children, grow, and work for you to make you more
money. This is where you begin to multiply your money. You let your money
bear more of its own kind - more money! In other words, invest it well and
it will make you more money than you can possibly do yourself. And when your
investments bear fruit, don't eat all the fruit! Re-invest most of your
investment gains back again - this is the only way it will grow in leaps
and bounds. By the way, invest in high return investments. Get yourself at
least 20% annual compound returns. They are easy to get and they are safe.
4. Preserve your capital. You cannot grow anything if you will be losing
your capital. Now, understand that it is the nature of money that you will
win some and lose some. No one, not even the greatest investor in the world,
can guarantee success 100% of the time. Accept this fact and relax. However,
you can put in place strategies to ensure that your capital losses are
mathematically managed so that they are easily offset by your gains. This
is the area of money management and asset protection, and we will look at
it later in more detail. Also, it goes without saying that if you wish to
preserve your capital, don't get into anything before you have studied it
to know and understand why and how it works. "Investing" your money based
on hot tips, stuff you saw on TV, your cousins chat with you last weekend....
that will get you into trouble. Find out for yourself first; do your research,
and don't just take what the "experts" say. Get in there, get involved, get
your hands dirty, and find out for yourself. If you don't want to do that,
then the only other way out is to get a very well qualified advisor with
a proven, verifiable success track record in that particular field to tell
you what to do and what not to do. Don't just get any advisor out of the
yellow pages and go with them without checking their performance record and
references and so on.
5. If you have a home on mortgage, which many people do, convert it into
a profitable investment. As it is, most people hold homes that are actually
liabilities to themselves and assets to the bank.
6. Insure a future income. Structure your financial affairs so that you
progressively systemize the making of money and wealth. This will free you
from having to be present or having to hold a job. You will have created
a system whereby your money works for you and brings you both cash flow to
use now and when you retire, if you wish to retire, and ever-increasing wealth.
7. Increase your ability to earn more. You will always earn based on what
you know, what you are aware of. If you are not aware of a certain opportunity,
you will not even recognize it. So, increase your ability to earn by making
it a habit to continuously upgrade your knowledge. Over half of all Americans
hardly read a book after they finish college. Of course they will be stuck
in time if they aren't making any mental progress. They will be stuck in
a day that seems the same, the same old same old, a day that seems to repeat
itself. You must upgrade your knowledge consistently - we live in a universe
where change is the only constant. You have to move with the cheese. Gain
financial intelligence and financial responsibility.
8. Cut your taxes down to about 10% of your income. For most people, taxes
are the biggest expenditure they face. Most people pay almost 50% of their
income in taxes (income tax, corporate tax, sales tax, fuel tax, and all
the other taxes they pay all add up to almost half their income). If you
can put in place strategies to save you about 30 - 90% of the taxes you are
presently paying, and this is what most wealthy people do, you will have
a lot of money left over to invest. Mathematically, our economies can do
very well with 10% taxes. The reason why we pay so much is government
mismanagement, waste and expenditures that don't make sense.
9. Have multiple streams of independent income. This doesn't mean having
many jobs. It means creating income streams that are independent of you.
This gives you free time, more money to invest, and the ability to earn from
one income stream when another may be down. The cycles of money are that
you have up time and down times, and multiple income streams enable you to
insulate yourself from the downtimes (or even profit from them) and take
advantage of the uptimes in many different areas.
10. Avoid bad debt (debt that harms you) and use good debt (leverage) to
help you grow in leaps and bounds. Have compound interest on your side, not
against you.
11. Create automatic money systems. These will give your finances a life
of its own. It will become a self-maintaining perpetual system with a strong
foundation and ability to grow. Some of the systems you will need to create
are an automatic saving and investment system, automatic debt reduction system,
automatic giving system, automatic personal finance management system, and
so on.
These things are all easy to put in place. All you need is to look at the
right information and apply it. It is simple, but you do need to change the
contents of your mind. The thinking that got you where you are now is not
the same thinking that will get you somewhere else; it will be a different
thinking. You will need to acquire new information and apply it and that's
it.
About the Author:
| Article written
by David Cameron, CEO ImagesOfOne.com, author of This Book Will Finally
And Certainly Get You Rich No Matter Who Or Where You Are Now Guaranteed,
A Happy Pocket Full of Money, and other titles. These and titles such
as Think and Grow Rich, As A Man Thinketh, and more are available
for download and free trial at
http://www.ImagesOfOne.com. |
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