Wealth Accumulation - the easy way
Wealth accumulation is possible for everyone, and it doesn't have to be difficult. In fact, it can be easy. I like easy. Most people do.
To accumulate wealth, higher rates of savings need to be coupled with higher rates of earnings. Wealth will accumulates so much faster when you're making both ends of the equation more robust.
If you are trying to build wealth in a serious manner, it usually takes both an increase in income and an increase in your habits of saving money.
Doing one or the other will help, but it isn’t nearly as effective as doing both, and more of each is better.
Benjamin Franklin said: “A penny saved is a penny earned”. So, if you can earn another penny and save it, then you have just doubled your ability to stash money away for your long-term financial goals.
If savings is "square one" of a money management plan, then saving more is "square two" in my book. Years after we've spent our money on "stuff" we won't be able to point to much of anything. Years after aggressively stashing our money away we'll be able to point to a big pile of options, potential, opportunity and value, because that's largely what money represents.
If you can earn more, that doesn't mean your cost of living has to go up. If you keep your standard of living the same, then you'll have more for your money management plan to work with.
You might be one of many people that have an interest in operating their own enterprise to bring in more money. If so, then check out my other website called Sensible Small Business Ideas for ideas about starting your own enterprise.
My experience shows that working for yourself can double your income overnight. I know it doesn't seem possible, but when you apply yourself in your own business, you are in control of your income. Moreover, there is no dead wood in the organization riding on your back, and you cut out all the overhead that management consumes.
All that income that would otherwise go to supporting deadwood and management comes right to you. You'll make a lot more money being self employed, and then you can put that money to work according to your money management plan.
You'll find that wealth accumulation is easier as you spend more time doing it. Seeing how your money accumulates is inspiring in itself. My friend and associate Brad Chaffee wrote an article that echos my thoughts exactly: Wealth accumulation isn't just for the wealthy, it's why they're wealthy. Clearly, I'm not the only one preaching about saving money.
So, if you want to be wealthy, start applying yourself to deliberate wealth accumulation. Earn it, stash it, invest it conservatively, resist touching it unless you have to, and before you know it, you'll have quite a pile for emergencies, business start-up, investment in your education and training, or whatever worthwhile needs there may be.
Done with Wealth Accumulation, back to Mindset of Frugality