After studying hundreds of books and biographies on the subject of WEALTH creation it all comes down to the following basic steps:
- Create something of value. Value is defined by the target customer and should respond to their needs and wants. Value creation can happen at an individual, household, nation and global level. You will need to develop the competence to create valuable products and services. Creating value also includes spending years to acquire specialist knowledge and skills which you can deploy at a job. Without creating anything of value your chances of acquiring wealth are very narrow. And remember you don’t necessarily need money to create value. All you need is your creativity, intuition, and imagination.
- Bring your value to the market. It doesn’t help to create a valuable product or service and then hide it under the bed. You have to become an active market participant. The market can be a physical place or a virtual space. People need to be aware of what you’re selling before they try out your product. If you find the right people they will buy what you’re selling and tell their friends and family. Make sure you find the right market for your product or service.
- Earn an income. The market might respond by giving you an income. The income you earn will depend on many factors including the need for what you do, your ability to do it, and the difficulty of replacing you. It will also depend on the scale of capital deployed. So focus on improving your ability to maximize the quality and quantity of goods and services you’re delivering.
- Create a gap between your income and expenditure. This gap can be created by lowering your expenses or earning more money. This gap represents your savings or seed capital which you’re now going to deploy to build more wealth.
- Invest your seed capital. Invest in assets which appreciate in value and generate an income. Some things will work out and others will fail. Take heart. This is part of the road map to wealth and this experience is invaluable on your journey to the top.
- Repeat. Replicate this process over and over as you gain more confidence and experience. Eventually you’ll get the hang of it. Money will no longer be a pain in the neck but an asset which you can deploy to improve your life and make a difference in your community.