In an article of this size, I obviously can only touch on the principles of Wealth Creation, yet if the seed that I sow finds fertile soil in your consciousness, my efforts have not been in vain.
Firstly, one has to drop the notion of “making money” and replace it with the much speedier and easier principle of “Wealth Creating.” I have written a great deal on the reasons why this is so elsewhere but for now I ask you to accept this principle.
Secondly, one has to accept the fact that all salable material possessions is wealth – not just the more limiting “money in the bank” conditioning. Money becomes the means to an end but the end to be achieved is always awesome WEALTH.
Thirdly, one needs to list the current obtainable values of one’s accumulated material possessions, under the heading WEALTH TOTAL. It is this total that you will learn to multiply at a phenomenal accelerated rate.
I will illustrate these three important key points by detailing an actual case study.
I have a dear friend whose daughter and son in law were recently married. Sandra and Ken asked me that in lieu of a wedding present, if I would consider showing them personally how to begin creating wealth from scratch.
They were enthusiastic and had a great desire to succeed so I agreed to their proposal.
I arranged with them to hold a garage sale at their rented home to raise some initial funds from the sale of a few unwanted items.
The sale only resulted in a mere $82.00 - but I knew that even $20 could have got them started on the path to riches – so to me, $82 was a kick start. Note at that point in time we did not create any extra wealth – merely exchanged stock to cash.
The next weekend we went together to charity shops and to other people’s yard/garage sales. We especially selected interesting items to purchase that were at almost give away prices. With only $82.00 to spend we could afford to be very choosy.
We had a lot of fun in the process and ended up filling both the back of the wagon and the trailer and spent only $64.00 of the new wealth program’s funds.
Once home, we carefully listed and priced each of the items. The price we struck was the price that we felt confident of obtaining by either selling on Ebay or via the notice boards at the local shopping centers. The total of these items less ten percent (so as to be sure that the total was a conservative estimate) came to $346.00.
I explained to my young pupils that their wealth total upon purchase of these articles had risen by a minimum of $282.00. That is $346.00 less the $64.00 = $282.00.
One’s wealth rises (or declines) upon the purchase of assets not upon the sale of such assets. For Example, if one sells an article worth one thousand dollars – you have merely swapped one asset for another. Your wealth does not increase. Now if you were to take the $1000.00 and buy a painting that you later find to be worth $5,000.00, your wealth total has increased by $4,000.00.
Sandra and Ken’s wealth program was now worth in total a minimum of $300.00. (Includes the $18.00 still unspent.)
Over the following 8 weeks, I went out with them at least once a fortnight. We strictly only used the funds generated from the gradual sales of the purchased items. My aim was to show them that at the end of that period they could easily achieve a wealth total in excess of $3,000.00. We managed $4,620.00 for the period.
Now I reiterate; we did not have $4,620.00 in funds but had the same value in saleable stock (wealth).
The good news was that several items were now selling in excess of $500.00. The budding wealth creators quickly got the hang of these awesome principles of Wealth Creation.
Other than a few phone calls, I left them alone for a further 3 months to “fly solo” and gave them the reachable target of $20,000.00 as the value set for the accumulated goods purchased. They managed that figure with only three days to spare of my deadline.
‘We love doing it. It’s incredibly rewarding and interesting. We are learning so much – so quickly.’
‘Fine,’ I replied. ‘But I am now going to up the anti. Let’s say, that for our next challenge, within the next 90 days you will endeavor to increase the $20,000.00 total to $40,000.00! For that target we might also begin attending some dealer auctions and also begin to place items into stores on consignment.’
I explained, that to achieve such a target they would need to sell over the 90 days about $8,500 worth of goods (less than $100 per day) and as they sell, purchase replacement stock with at least a little over 200% markup. I knew they were already receiving these results so my new target was quite achievable.
I could tell from their beaming faces that they would accept and succeed in the challenge.
Soon they will leave the shed sales behind. Their house and garage were bursting at the seams with inventory. Yet they knew that within that past few months they had in their spare time, achieved “the impossible”. They will soon probably specialize in fine art or antiques or jewelry and ultimately real estate investment - yet these wealth-creating principles will remain constant.
Time wasn’t really important. Some budding wealth creators might be content to lumber along and steadily become rich. Others want to do it all yesterday. However the results are always ultimately the same, if one rigidly sticks to the principles – abundant wealth is assured.
In those few months my two protégées had learnt enough to realize they will never have to fear poverty again. They know that if they continue on the path, they will end up extremely wealthy - simply by having The Secrets Of Wealth Creation Revealed to them and the self-discipline to carry these principles out.