The number of people who don't dream of becoming wealthy are few and far between. While money isn't everything, it sure does make life easier. Having too little or too much money both create problems to deal with, but wouldn't you rather have problems with too much money? I've looked all over the web at different methods or claims of creating wealth. It's ashame that there are so many people out there who are using the method of telling someone how to become rich to become rich themselves. Grounding ourselves in the founding principles of our company, trust & truth, I cannot tell you any guaranteed way to become wealthy. Quite honestly there is no magic formula for doing so because every one will have unique experiences in their individual circumstance. That said, I'll share with you the techniques I've used to construct my own wealth plan. It's something I've created an acronym for: LACED™.
The LACED principle™ is fairly straightforward. LACED™ stands for:
If you create a plan using all of these principles, you'll likely have a strong plan.
I've heard many wealthy people speak about leverage. Basically you'll want to use as much leverage as possible to build wealth. You can do so by utilizing vehicles that allow you to control large assets with smaller assets. Some examples of this are, buying an investment piece of real estate with 10% down. This is incredible leverage if you think in terms of the fact that you can control $180,000 worth of property for $18,000. In some cases you may be able to control real estate with absolutely no money down! Another example would be buying stock options. In this case you purchase the right to buy or sell stock but not the obligation. This is a highly risky proposition and should not be tried without extreme due diligence and some understanding of how options work. Suffice it to say that with options, you can control 100 shares of stock (1 contract) for a small fraction of the price of the underlying security. By the same token, a small movement in the right direction on the underlying security can magnify the value of the option considerably.
Next, you should try to automate as much of your plan as possible. Anything that doesn't require you actively working on it will free your time to build greater momentum towards your wealth goals. The internet has greatly enabled strides in this way. Consider how quickly you can buy and sell stocks online, research real estate information, or even sell products completely online through an automated payment process.
Compounding is one of the most powerful tools we can use to build wealth. There are a lot of different strategies for compounding. You may want to reinvest profits in your business to grow the business larger. You may reinvest your returns in the stock market to grow your portfolio more quickly. The more you are able to make your existing assets work for you, the faster you will propel yourself towards wealth.
Some might say that doing things ethically is more of a moral choice than an actual tool for wealth creation, but I will counter with the fact that every major religion on earth I've studied has in some way said what goes around comes around. In other words if you cheat, eventually you're going to lose. Deal with everyone honestly and you'll get wealthy faster. An interesting take on this is something many people won't think about. When you don't have a lot of cash, you don't want to spend money on CPAs, Attorneys or other professionals to help you grow your wealth. You'd like to have their service but don't want to pay the price. This isn't ethical. You wouldn't want to give your labor away, and yet you feel they should. This is where those ethics are really going to make a difference! You get what you pay for and if you try to be cheap you'll very likely get cheap advice.
Finally, you want to make sure the core components are as duplicatable as possible. If something works one time, it may get you a large gain, but if it doesn't work twice it may give you a huge loss the second time around. I've had a lot of my mentors tell me that a lot of small gains are much better than having one big homerun. Find things that leverage, compound and are as automated as possible and then pick those that are duplicatable and you will have an astonishing wealth building machine in place.
I hope you can take this lesson and build your own wealth plan with it. It may sound vague and it is, but I believe it holds all of the secret ingredients you'll need to work your way towards having your wealthy future all LACED up!
All the best to you!
Rasheed Ali (#1 Adversity Consultant) and Bill White (Syncronicity Expert) have just launched http://www.SleepYourWayToRiches.com - a powerful new success and wealth creation website and http://www.SolutionCoach.com - a powerful business and success coaching site.