Wealth Secrets For Creating Wealth Long Term

+Hans Schoff wrote:

Wealth Secrets – Creating wealth doesn’t happen overnight

Creating wealth doesn’t happen overnight – even the so-called rags to riches stories you hear about all the time where a person seemingly goes from zero to hero in a matter of days are not what they appear to be on the surface.  All you may see or hear about is their quick rise to fame…

But what you do not see are the years and years of study, trial and error, frustration, struggles and hard work that lead to that break through.  You’ve likely heard the maxim that “Luck is when preparation meets opportunity.”  It required that person to be trained, studied, and ready to perform for that opportunity to make any difference in their life at all.

You can begin the process of creating wealth right away but unless you’ve been preparing for wealth for a good while, wealth is not suddenly just going to appear and just multiply out of control where there’s no stopping it.  Creating wealth requires a long term vision, a long term plan for what you’re go to do, how you’re going to do it and all the interim steps along the way.  A good example of this today is China.

Creating Wealth Requires Long Term Planning – Just Ask China!

The Chinese are known for their long term planning and because of this are situated much better than we are here in the U.S. when you look at resources for example.  Here we’re fighting wars for our energy resources because we didn’t have a strategic long term plan when it came to energy policy.  Several high-up military officials are concerned today about our ability to be able to fuel our many military vehicles in the future with our large dependence on foreign oil which appears to be getting harder and harder and consequently more costly to get a hold of.

The Chinese on the other hand now control a good 95% or so of the rare earth minerals market (you know, all those special magnets and elements that are required to create iPhones, solar panels, hybrid cars, computers, night vision goggles and other advanced electronics).  Again, the military which is also dependent on such elements for it’s many important applications and uses has also voiced it’s concerns on such a lack of control and limited supplies for these critical rare earth elements.

As you can see from the diagram, China’s plan is working out very well for them; the U.S.’s plan, not so much (just kind of took rare earth minerals for granted for so long, may result in much higher prices or shortages in the future).

Similarly you need to have a long-term plan for creating wealth.  It’s all well and good to make quick cash now, but you need a plan in order to ensure you can continue to make that income and begin converting your income to passive residual income (cash flow) that comes in each month without you having to continue working for it.   You don’t want to find yourself stuck years into the future, having dramatically increased your expenses and liabilities (which generally tends to happen by default – the “keeping up with the Jones’” syndrome), effectively trapping you in the rat race – regardless of how much you may be earning – because you failed to plan for creating wealth, thinking more money was simply the answer to your problems (remember, money has the power to make you rich as well as poor).

You want to know that as your income increases, you’ll make the right decisions with that money; that you’ll spend as much as you can on good expenses – expenses that make you richer – and not on whatever makes you feel good at the time (like doodads or even worse liabilities that tie you down).  That’s why you need a long term plan for creating wealth.

Wealth Secrets – Creating wealth is not intellectual, it’s emotional

You have to be disciplined in creating the habits that will bring more money to you so that money doesn’t go as quick or quicker than you got it (or worse leave you with even bigger liabilities).  It’s not rocket science to figure out how to grow your wealth , but when it comes to it most are usually not prepared or emotionally equipped to do what it takes to ensure the money stays around and grows.

Decide and make your financial plan for creating wealth for the long term today.  Making money is an important part of the equation but keeping it so that it can grow is equally a critical part of the equation.  Plan 10, 20 even 50 years or more into the future like the Chinese so you can have 95% of the resources you need in order to live the life that you deserve without fear, worry or compromise.

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Originally posted 2011-11-22 08:09:32.

Original post can be found here: “Wealth Secrets For Creating Wealth Long Term