The No1 Secret to Becoming Rich
If you want to amass riches, this is the science
I loved the science of getting rich by Wallace Delois Wattles.
Such an inspirational book, and even the robotic voice of the audiobook is refreshing.
As an avid reader of anything to do with personal development and self-help books, I most appreciate the best writers’ values and lessons it teaches their readers. Even so that, I have no issues allowing my two boys to listen, especially on long drives.
One day, my son commented, ‘Why do you want to be so rich, you will become greedy, and it’s boring!
Well, I will be damned.
Hmm, has he got a point and is his understanding of riches eschewed?
As a family, we can be classified as average middle class, with both parents working but most importantly, having the ability and lifestyle to home educate and school our children.
Over time, my sons have asked numerous questions about riches, success, and the reasons why, as humans, we crave the status of wealth and why we work so hard to achieve it.
Unfortunately, some struggle to make enough to survive, while some are inundated that it’s causing them a fear of losing all their riches.
IS THERE A SECRET TO GETTING RICH
If we figure out the number one secret to becoming rich, what happens after we have accumulated our desires?
Would we be honestly happy and content, and for how long?
Would we be satisfied with the power and status gained from the riches?
Would we feel free, knowing that money is no longer an issue?
Would we stop chasing the illusion riches brings into our lives?
Well, does it mean we all live in a delusional world, dreaming of becoming rich, but most will never achieve these financial desires?
According to Dr John Frederick Demartini,
‘1% or less makes financial independence’.
What a staggering figure.
Why are the market’s and successful business gurus teaching the 99% that all they have to do is think and grow rich, or we are money magnets if only we change our mindset from scarcity to abundance mind frame?
I don’t blame your pessimist view or scepticism; this figure is disheartening, but it is not surprising considering only 150 men manage the world monetary resources.
Aside from the sad truth, I like to think there’s hope for the rest of us. It feels better to at least think with a hopeful mind than dwell in misery and disenchantment.
Frankly, I always believe and teach my boys that everything they think about has energy forces and whatever they want, they have to envision it and work towards it. I’m currently getting them to understand the importance of homeschooling and self-education. The journey continues, but every day, I’m seeing improvements and changed mindsets.
There are extensive explanations on the secrets of becoming rich and successful; however, the crucial concept that touches me as a business consultant and coach who helps clients understand and achieve their desired financial success is
‘Nothing is impossible with a bit of hard work, goals, passion, right support system and love for oneself and the world’.
We live in a competitive space. Our attention is so divided, scattered and confused with missed messages, so no wonder people, especially business owners and entrepreneurs, don’t understand how to grow and scale their businesses.
The overwhelming information, advice and distraction are what I see is the number of disillusionment problems, frustration and fear of not fighting for our plans and dreams.
So, indeed, how can we understand the number one secret of getting rich and have the opportunity to appreciate the journey and its final destination of financial freedom and independence.
SO WHAT IS THE SECRET OF BECOMING RICH
If we all dial into this universal code of richness, imagine how heavenly the world will be. Lush.
What a mighty dream and something to work towards!
According to Chamath Palihapitiya, the best way to become rich and build wealth is ‘slow compounding’. Before we break it down a notch, bear in mind that compounded investment returns have helped make investors, like Warren Buffet, billionaires.
Most successful investors and wealthy entrepreneurs advocate the slow and steady concept when it comes to becoming rich. Apart from patiently building your foundations, you also learn how to sustain your wealth as the mistakes and slow climb will ensure that what you eventually make will pave a strong legacy and imprint in the world.
This idea has been covered by Burton Malkiel and Charles Ellis in ‘The Elements of investing’, who echoed what Albert Einstein claimed that compound interest is the most potent force in the universe.
So the secret of getting rich slowly but surely is the miracle of compound interest.
Don’t worry if you haven’t come across this term or its power; it’s never too late to learn.
In a nutshell, what it means is that people earn a return on their actual savings and the accumulation of interest they make on that savings investment.
Love using an example to highlight how powerful compounding is and how it can slowly but surely help you become rich one day. Obviously, the more money you have to invest, the more you will be rewarded for your patience.
Now, as an investor, you get rewarded with a typical return of close to 10 per cent a year over the past 100 years if you had been buying stocks on the US stock market.
Sure, the returns may vary from year to year (unfortunately sometimes, it can dramatically affect your investment but having the resilience of an astute risk taker and the know-how, you can prevent catastrophic damages), but to assist in highlighting the point, supposed it returned precisely 10% each year.
Even if you started with £100 investment, the account would be worth £110 at the end of the first year; the original £100 plus the £10 that you earned. Now say if you leave the £10 made in the first year and reinvest, you will have £110 and would have potentially earned £11, allowing you to have £121 in the second year.
In its third year, it would have earned £12.10, making the account worth £133.10. So, if the original £100 is allowed to carry on compounding into its 10th year (bearing in mind that you didn’t need to do anything), it would earn you nearly £260 — £60 more than if you had made only £10 per year in ‘simple’ interest.
So yes, the secret is genuinely in compounding.
This powerful concept spills over in every area of life; it’s all about consistently working on whatever goals, plans or dream, little by little, even if it seems unreachable and unattainable.
FINAL THOUGHTS
Understandably, numerous studies and case studies are crafted by successful investors, business owners, and entrepreneurs into the science of getting rich and the power of compounding.
Therefore, I have summarised some of the most important lessons you must understand: monetary richness is nothing when other life elements are in turmoil.
Everything is possible with practical knowledge.
* Let go of negative emotions like guilt
* Set goals that are aligned with your values
* Work to serve other people
* Dedicate yourself to something which is aligned with your values
* Be able to model success. Look to other successful people and implement things from their life.
* Find out what is most meaningful to you
* Determine your own and others values.
* Prioritise the thing you do with something that feels important for you
* Transcend pain and please mindset and adapt a CEO mindset.
* Do things that mean a lot to you and feel like something of high value.
* Train yourself to do what you say. Live congruent with your goals and values.
* Procrastinating is created by unclear vision, too big chunks of work, or not congruent/clear with your highest value.
* You are like a magnet — on both positive and negative sides. Live like the way you feel, don’t play yourself.
* Create a harmonious life with good achievable values and goals.
