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Generating Wealth - Formula To Success

Mar 14, 2008
Everybody says, if only I made a little more money, I would be better off. They think that an increase in their income would make their lives less shabby than it is today. What that 'little more money,' they would be able to afford better food, better clothing, better everythings!

Unfortunately, people seem to associate 'making more money' with wealth. A person making $12,000 dollars a month seems to be wealthier than one who makes $10,000 a month. And why not? This person has a $2000 advantage over the latter! Isn't he sure to be deemed wealthier?

The answer is no. A person might be making a lot more money than others, but that doesn't mean he or she is wealthy. What? Unbelievable? Stay tuned for the answers as to why!

What is Wealth?
Wealth pertains to money and property. Being wealthy means you have an abundance of objects of value. These things may be houses, land, bank accounts, cash, jewelry, and other valuable objects.

When people think of wealth they usually think of stockpiles of gold and silver and the ability to waste money without remorse because they have so much of an abundance of it, it doesn't matter.

This could not be more wrong. This is not the proper definition of wealth.

The keyword in the meaning of wealth is the word abundance. Abundance means you have more than enough. And yes, of course, this is what we all want to achieve. But unlike what most people desire, it does not mean you can spend without remorse.

Back to the Question
You might still be stumped as to why the man earning $12,000 might not be as wealthy as the man who earns $10,000. Here's why:

Since wealth is the abundance of objects of value. The more objects of value you have, the wealthier you are right? Now the question is, does a bigger paycheck guarantee more wealth?

The answer is no.

The man who makes $12,000 may take home a bigger paycheck. But what if he spends more than that amount per month? Would he be able to create that abundance he so sorely seeks? And the man who makes $10,000 per month, what if he only spends $5,000 of that per month, would he have surplus at months end?

That is the secret of wealth: Never spend beyond your means. Save, save and save. Remember the old adage? - A penny saved is a penny earned? That has rung true even from the earliest days. Everyone can become wealthy, if they would stick to this single most important idea.

The problem with most people is that money is power. And the more money they have, the more inclined they are to throw it away. If this is how you are thinking, stop! Check back with the previous paragraph and reflect anew. Always remember that thought because without a proper spending plan, there can be no wealth.

How Do I Do That?
Always have a spending plan. Take note of expected income and tally this against prospective expenditures. How much is the gap. If there is no gap or if the expenditures exceed the income, you are in deep trouble. You will want to rearrange your spending patterns if this is the case.

There is no shame in tightening the belt. If your goals include the future, you must prepare for it today.

Remember that the larger the difference between the income and the expenditure, the larger the wealth that can be generated. This is the secret of wealth.

A Wealthier You
That was simple wasn't it? If it was that simple, why doesn't everybody do it? The answer is: because it takes a great deal of patience and self-control to live within your means.

Most people are victims of their spending desires. That difference between wealthy people and those who are not is not the difference in their bank accounts but the difference in their attitudes towards spending. If you can hold today for a better tomorrow, wealth is on its way!

So plan your future today! Spend within your means! Choose those that are important and tell yourself, "I don't really need this right now" if they are not. Make a spending plan and watch your coffers grow!
About the Author
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>http://www.comlev.com Team Blog: http://www.turnkeyinternetbusiness.blogspot.com
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