The race from financial nothingness to wealth is a process that takes time, technique and hard work. There are quick schemes—and legal too, by which a person can earn a high profit. There are businesses such as real estate businesses, house flipping, managing, retailing, where one can earn thousands to hundreds of thousands of dollars with an accumulated work of twenty to thirty hours. Wealth however, isn’t only about earning a high-income—as it is proven in the lives of men who were once high income earners, yet ended up poor. In economics, a good measure of wealth is the net-worth. The net worth is a person’s financial value after the value of his liabilities is subtracted from the value of his assets.
It goes to say that a high income can give a person the quality of life such person desires—the standard of living of a man who earns $500 per month will definitely be lower than the standard of living of one who earns $5,000; however, what happens when the source of income dries up? People that live above their means and borrow just to keep up with the standard they want often drown into penury when they lose their source of income and are unable to get another.
The four indelible traits of a good financial life helps a person live a life of wealth; this life isn’t restricted to after retirement alone but exists from the inception where a man makes the decision to live wealthily.
Prudence: Prudence is the ability to create big from little over time. A plumber who earns $450 every month and saves $120 from that amount will have just about $360 in three months. However, over a period of seven years, such plumber will have a saving worth $8640. When an interest of 10% per year is added to that figure, it increases. Sometimes, we will have little and we must be able to live, save, expand, invest, and multiply from what we have.
Patience: If you will be rich in a year, you will hang in three weeks. Patience is the virtue of the gods and an attribute of wealth. There are times when we must sit and learn our craft; patiently working, waiting, preparing for the opportunity; and when the opportunity comes, we must take it by all means.
Skill: There are four quadrants of earners: the employee, the self-employed, the business-owner, and the investor. The easiest way to become a business owner is to become self-employed. By being self-employed, one needs skill. Follow your passion; learn your craft; turn your talent into skill; bring the skill into the market place; trade your skill for money –it’s that simple.
Hard Work: There isn’t an easy path to wealth—or success-or anything substantial. There is a myth: People say, work smart, not hard. The true and wise piece of advice is to work hard and smart. For example, if a tree feller is contracted to cut a hundred trees, if he uses a blunt blade, he will cut one tree in two hours; however; if he makes the smart move and sharpens the blade, he will cut one tree in an hour. However, even with a sharpened blade, if he spends most of his time drinking and sleeping, he will not achieve his aim within the allotted time. To work smart is to work under the principles that will increase productivity, yet, a creative or—smart person, who is lazy will achieve very little also.
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