wealth creation cycle

The wealth creation cycle has a few main components that make wealth a continuous cycle, rather than a single peak with an eventual dip or loss. Building wealth isn’t necessarily hard, it’s the consistency of staying rich and making your money work for you that’s hard. I compare someone who gets rich with a nice Ferrari. You can have the Ferrari, but if you never start it and go for a drive, then what value is it really to you? The same applies to a new rich person. They may have some wealth creation coming their way, but if they don’t constantly create more wealth, they eventually start over from the beginning and that original wealth was of no use to them. You have to continue to build wealth your way, and it takes some key principles that can make you gain more and more wealth.

MAKE THE MONEY WORK

So one of the reasons many people struggle to get rich is because they focus on how they can continue to make money instead of making the money that already works for them. If you talk to any millionaire who has had wealth for a long time, they will tell you that this is the key to building wealth. I’ve always liked the saying don’t pay interest, do it. One thing that happens is that people get money and spend it, or finance things. You need to be in charge of your money, don’t let it control you. Many people are working to pay the bills and living paycheck to paycheck. What if one day that check stops coming? Hopefully, you have put money into vehicles that have been earning you interest that you can fall back on. Get the perspective in your head that every penny is a soldier ready to work for you.

CONSISTENCY IS KEY

If you have been successful in building wealth, never stop and hit the brake. It’s called a cycle for a reason. If you find a system that is successful, milk it dry. Always be improving your skills to create wealth. Look to develop many streams of income. Once you have created a good cash flow, you will have the ability to try new investments or business opportunities that can also generate more wealth. Always be researching and looking for ways to keep your wealth creation going. Michael Jordan didn’t just get complacent once he won his first championship. He kept improving and continued to win championship after championship. Keep working for those victories, big or small, they are all good.

COLLABORATE WITH OTHER RICH PEOPLE

This does not mean getting rid of friends or family members who are not wealthy. I hate business people who say that to be successful you have to be around successful people. I believe that with your wealth you can do a lot of good for others who may not be so fortunate. Where much is given, much is required. Don’t act like you’re better than people because you may have more money than them. My purpose in this component is to work with other people who have good ideas or systems that have been tested and work for wealth creation. It’s always good to see what others are doing.

Follow these principles and you will see great results in building wealth consistently.