10 Simple Steps you can Create Wealth and Increase Income
Building generational wealth is a lot easier than you think, and the lessons in this article are things I picked up from naval, So according to Naval, This are some of the points that you can use to build wealth and I know some of you are going to be angry and I get it, sometimes quotes like this overcomplicate things but in summary, here’s what he’s saying: getting rich by itself is not what’s going to make you rich, so don’t just pursue money but what he’s saying is to pursue assets that make you money rather than just being your end goal.
Eg instead of just having 1million dollars I’m cash in your bank account, buying a property for a million dollars, that makes you 5k a month without you needing to lift a finger or invest that money in the stock market where it can grow into 60k a year in value, or own a small price of a company that gives you a paycheck regardless of what you’re doing day to day.
If you want go get rich these investments would make you rich and you won’t just get there by saving money and having money doesn’t mean you’re rich if it isn’t working for you.
The next is to understand that : Ethical Wealth creation is possible, but if you secretly despise wealth, it will elude you.
This one is incredibly true and I’ve never fully understand it until I began growing my blog, but it’s shocking how many people believe that In order to make money you have to take advantage of another person, in other words, for every one dollar you make someone else loses a dollar and that’s absolutely not the case at all.
The world of money is not a zero sum game and your gain is not at the expense of someone else and I believe that it most industries, you’re paid in direct proportion to the amount of value you provide. Wealth is something that constantly changes and evolves and money is constantly flowing Dr one person to another and that’s the beauty in it. You can make Mindy without doing it at another person’s expense and the sooner you realize it, the sooner you begin accumulating wealth.
The next one is: Ignore people who are usually playing status game by attracting people, playing wealth creation game.
So in other words, status means nothing and anyone aiming for a sense of superior could be ignored those are the people who are usually playing the social game by pushing people down, so that they in comparison look better than they actually are, so anytime you talk to this people just understand that anything they say is more about, hoe they feel about themselves than it does about you and your actions. This is staying out there to go something like, don’t take criticism from people you wouldn’t take advice from and this applies here because anytime someone behind tearing you down, just consider where their advice is coming from is it coming from a place of genuine concern or is it because it makes them feel like a failure in comparison to because they never had the courage to go and do it.
The next point: You’re not going to get rich renting out your time, you must own equity- a piece of a business to gain your financial freedom.
Again this goes back to the practice of you won’t get rich, if all you do is trade your time for money without using that money to invest. True wealth creation very rarely happens while working a 9-5 job or any job where the only way to make more money is to work more hours and that’s it.
The issue we’ve all faced with is that there’s only 74 hours in a day, so beyond a certain point, it becomes impossible to get ahead by working more hours because eventually you hit that 24 hour mark and you just can’t work anymore hours but when you begin investing what you earn, your money can begin working independently from the time you put it so owing assets and equites like stocks, real estate or part of a business, is what’s going to make you wealthy not necessarily working more hours, now if you’re confused with exactly what you need to do here’s another tip.
You will get rich by giving society what it wants but does not yet know how to get, at a scale.
This I have to say is the only point, I both agree with because it’s true, but I also disagree with it to a certain level.
He comes with it from the perspective of someone who invest in a multi-billion dollars Startup that change the way you run the society from that perspective, he’s right.
However, I don’t believe this is the only way to build wealth, and I think saying this might be intimidating for a lot of people By giving them the impression that they have to go long if they want to get rich, the reality is that if you want to build an absurd amount of wealth fast then yes, what he’s saying is correct.
But there’s no harm in slow steady approach to build your wealth overtime, working on a normal job investing your money consistently and just letting it grow overtime and its entirely possible for you to be with a few million dollars in the future, just by investing consistently under $600 a month.
It might not seem super cool but for any 20 year old out there, reading this right now, you could be worth a few million dollars by the time you’re older, if you just invest less than $20 a day it’s very achievable that anyone can do without taking the risk of going big or going home, but then after that
Pick an industry where you can play long term goals with long term people
Again some of these might sound rather cryptic and there’s still a small chance of him talking about playing a very elaborate game of shoes and ladders but from my perspective I sew this as him saying: think long term.
Success is not something that’s going to happen over night and chances are if you can’t stick wiry something long term you won’t be able to overcome any obstacle or hurdles that comes your way and you’re not going to stick with it through long enough to actually be good at it, like imagine of I quit 8 months though into working as s real estate agent when I was 18 years old, because I haven’t sold a house yet, I would have missed out on the multi million dollars client had I just stuck it through, a little bit longer or imagine if I have never invested in real estate because the market kept going down, I would have missed out on the best buying options of many a lifetime or imagine if I gave up on my blog because no one was reading my article, Think long term, no. Matter what you want to do stick with it because it takes time to build something up and only work with people who share that exact same mindset as the rest.
Another Nugget is : The Internet has massively broadened the possible space of careers, most people haven’t figured it out yet.
Obviously yes, this is a very true and I really believe that the internet has levelled the playing field in terms of who can make money and from where, so it’s no longer dependent that you look and live in a certain location to open up a business, yet no longer need a physical Space front, of you want to sell a product and as long as you can provide a product or service to someone else.
In fact the best way to show people the value of what you’re created it’s going to make you money, it’s going to take time for the rest of our society to catch on to this because, overall I bet we’re going to find more and more ways to automate our lives and bring everything we need to the touch of our fingers which is really another fancy way of saying.
Play iterated games, All the returns in life whether in wealth, relationships,or knowledge comes from compound interest for those of you that aren’t aware an iterated game is something you do repetitively and all he’s telling you is that repeatedly doing the same thing consistently is going to give you the best outcome even though it might not initially lead to fast results, like going to the gym for instance, if you go once, you’re never going to come out looking like Arnold Schwarzenegger but if you go repetitively every single day for years then you’re likely going to see some pretty big results.
The same can be said for almost pretty much everything in life that you can do, think about every single day, it’s like you’re playing an arrow of your life up or down.
Everyday you have a choice to build on, the success and momentum of the previous day or you could just point that arrow downwards and that’s where you’re going to carry forwards.
Anything worthwhile is worth doing every single day consistently without fail or as long as you can, once you get that down that’s going to bring you success.
The next one is one I very much agree with: Pick business partners with high intelligence, energy and above all integrity, don’t partner with cynics and pessimist their beliefs are self fulfilling.
They say you’re a combination of the 5 people you spend most of your time with, so surround yourself with negative people that’s going to influence you, if you surround yourself with highly motivated people that’s going to push you further, I’m such firm believer in the self fulfilling prophecies and your mind is constantly looking for ways to reaffirm whatever your beliefs are, whether or not you consistently realize It, if you think of yourself as a failure because that’s all you’re surrounded by your mind will look for wars to see yourself as one, on the other hand if you surround yourself with successful people who make building wealth seem effortless, you would find ways to build wealth effortlessly.
All I’m getting at here is that the easiest way to change your mindset is to surround yourself with positive like minded people who are doing what you want to do but being able to see that first hand that is able to vet you on the right track to thinking the exact same way.
The next is so true: learn to sell, learn to build, if you can do both you will be unstoppable, first let’s talk about learning how to sell, of you cannot effectively articulate the benefits of what you have to offer to another person, they will never use it even if it’s the most revolutionary product of the decade.
You want to build wealth and make money of pretty much anything out there, you have to learn how to sell, whether you like it or not, life is one big sales game, like anytime you go to a job interview you’re selling yourself or anytime you’re negotiating you’re trying to sell your vision, if you invent a product you have to find a way to get an investor or a customer interested to buy that product, nearly everything we do at its core is sales, you’ll need to learn how to communicate the benefits of what you have to offer while the same time listening to what the other person wants and then figuring out how you can manage the two together in a solution.
Now the second: learning to build this is obviously talking that your vision and using it to build a reality and I’m not a great builder by any means but I found that the easiest way to do that and walk towards it is just to start, don’t over think it just begin immediately, don’t get to ahead of yourself learn as you go along, stick wiry the and as long as you can do that consistently and you really believe in what you’re doing you’ll usually find a way to make it happen.
And then we have this one: Arm yourself with specific knowledge and accountability.
Specific knowledge is knowledge that you cannot be trained for if society cab train you, it can train someone else and replace you. And pretty much this has to be the harshess advice he has for all of us, but it’s true, you’re paid in direct proportion to how much value you deliver and how easy it is to replace you, the more you make yourself indispensable, the more job security you’ll have, the more longevity you’ll have and the more money you can make, this also touches on the fact that no one is going to teach you these things and it’s up to you to take the initiative to learn then as if you’re curious exactly what it is you have to learn, he goes on to say that specific knowledge is found by pursuing your genuine curiosity and passion rather than whatever is hot right now.
Building specific knowledge would feel like play to you, but will loom like work to others when specific knowledge is thought, it is through apprenticeship bot schools. Specific knowledge is often highly technical or creative and it can’t be outsourced or animated.
Again after reading this is something that has checked off, nearly everything through out my entire life that I’ve done, now for anyone who hasn’t followed my story, I got my real estate license shortly after I turned 18 years old.
And later came across someone who would later become my mentor, and then I would randomly be going to open houses to check out the market and need other agents to then ask their opinions of what they would think of real estate market and hoe I can get started to work 7 days a week, 12 hours a day without any break and those days would fly by and felt like hours, the same thing can also be said about you too. And I would not be this happy person without having to talk about the subjects I enjoy most.
The next one is to embrace accountability and take business risk under your own name, society will rewards you with responsibility, equity and leverage the worst accountable people have singular public and risky brands : Oprah, Trump, Kanye, Elon.
And I’m all for accountability, I believe its important to stand down at what you believe in and not back down at the face of any challenges but I also believe it’s not worth it to be too polarizing and decisive of your audience, that’s why I choose to focus on the savings and investing principle, that would apply to anybody reading this blog, regardless of their beliefs but to ease their own I’m certain that not a public figure js an where risky to those top brands so maybe he’s right but that’s just what I believe in.
And now the last one to sum it up, give me lever long enough and I will move the world, fortunes requires leverage, business leverage comes from capital, people and products with no marginal cost of replication (code and media).
Now the lever quotes is just a physics equation it’s why crossbars work so well, because you’re able to focus all of your efforts on one concentrated point to open the door, but to be honest finding a lever to pull the earth is not possible but the metaphor is all about concentrating all of your efforts and work into one single point in a way that gives you leverage and allows you to use your work an take you a lot further. And once you can do that, you can create wealth, he also goes on to say that, labour means people working for you, it’s the oldest and most fought over form of leverage.
Labour leverage will impress your parents but don’t waste your time chasing it.
Capital and labour are permissioned leverage, everyone is chasing capital but someone has to give it to you, everyone is trying to lead but someone has to follow you.
Code and media are permissible leverage, they’re the leverage behind the newly rich, you can create software and media that works for you while you sleep, what he’s saying that hiring people wouldn’t require that someone agrees to work with you and even though, it’s impressive to say, I have so many people working for me, it’s not always required instead creating a digital business can continue to grow exponentially without requiring you to work of more people.
In conclusion, give value, give entertainment or teach someone something you know, you really want to add something to the society you have to learn how to build instantaneous silver and the best experience to learn how to do that is just by going out and doing it.
These aren’t principles that you can learn about in the classroom and most of the time they’re just learn as you decide to try things out.