What do you really need to start building a life-changing amount of wealth?
Your 401(k) ain’t gonna do it. Neither is your day job.
The 200 aspiring Internet entrepreneurs at Bootcamp know. It was the subject of Michael Masterson’s keynote speech: The Special Theory of Automatic Wealth.
It all starts with the true nature of wealth.
“What is wealth?” asked Michael.
First, let’s consider what wealth is not. Wealth is not income. Even having a huge income is not wealth. Wealth is not a lifestyle with fancy cars and a huge house. Or investing in hot stocks. Anything rented, borrowed, or mortgaged – anything that can be taken away from you – is not wealth. Those are the trappings of wealth.
Wealth is stored, unencumbered value. That means retained income, savings, tangible investments, and financially-valuable and timeless skills. Anything with true value.
So how do you get this wealth?
Why is it that some people, no matter how privileged or how much income they have, are unable to really accumulate long-lasting wealth and others can?
It all boils down to the decisions you make.
Every conscious moment is an opportunity to become richer or poorer. Whether you’ll work on a project now… or later. Whether you’ll act on what you learn at a seminar… or get too busy and put it aside. Whether you’ll spend your “off” time gaining new skills… or watching game shows.
A person with a rich mind understands this concept. He is aware of these enriching opportunities. He can assess their value instantly. And he has the internal, emotional capacity to act on this information.
A person with a poor mind think the world is unfair. He believes in luck. He thinks there is a limited amount of wealth in the world – and he wants his cut. He feels powerless over his fate. He uses his energy criticizing, complaining, and condemning. This is someone who will never become wealthy.
Not all the decisions we make have to make us richer, said Michael. But when you make enough of these little decisions you start getting momentum. All these little decisions build and accumulate. Once you start making enriching decisions they will come easier and easier. And you will find more opportunities, accumulate more assets. Eventually, you’ll discover you’re very confident that you can build as much wealth as you want.
Here’s what it boils down to: Every situation is an opportunity. Every person you meet… every conversation… every book you read… every speech you hear… every meal you eat… every spending decision… every chance you are given… every problem you face… is a chance to become richer or poorer.
And if you have a poor mind… or are just skeptical… or find it hard to “take action” all is not lost. You can change and develop your own rich mind in eight simple steps:
1. Forgive yourself for being imperfect
2. Educate yourself out of ignorance
3. Practice yourself out of incompetence.
4. Develop rich skills:
- Think well (have capacity to ask questions, gain an ability to trust your gut instinct)
- Speak well (speak from the heart and with enthusiasm, have purpose in your conversation, learn the art of persuasion)
- Write well (a combination of being persuasive and being able to identify great ideas)
5. Recognize opportunity in everything
6. Take action (start right away)
7. Take profits and save them (don’t spend more than you have. As your income increases, keep your spending reasonable. When you make money, pay yourself first – always put money in savings.)
8. Continue to learn. Be an avid learner, be interested in everything.
Michael continues to develop his Special Theory of Automatic Wealth. And you’ll see his thoughts in future issues of ETR. But this is the core idea – and what you can take away today:
Every conscious moment we all have the capacity to make these decisions. This gives all of us enormous potential power. You have this capacity if you just allow yourself to be aware of these opportunities, recognize their value, and take action.
As Michael said, “Right here, right now is your opportunity.”