Build Wealth for Life

If you are an avid reader of Forbes Magazine you know that, among many other things, Forbes magazine is globally known for its list of the wealthiest 400 people in America. How is it that these people made it to the cover of Forbes magazine? Better yet, what are their secrets to build wealth? Discovering the wealth secrets of the rich is something we could all benefit from. So what does it take to build wealth? A bachelor’s degree, a masters or possibly even a PhD? Although this may not be what you were expecting, the answer is none of the above! Although an education is very important, what has made the difference in every person on the Forbes 400 list is the System they have chosen to apply their education and build wealth.

Systems: Profit and Wages

There are really not as many wealth secrets as one would think. The rich simply base their “wealth building secrets” on a concept of Profits rather than Wages. Jim Rohn, Americas Foremost Business Philosopher is noted as agreeing that Profits are better than wages simply because Profits are ownership. When someone owns a business the income that is generated flows from the Profit System, not the Wage System, profits are limitless, you can have multiple streams of income and there is no cap on how much profit you can make. In the Wage System, all you do is trade time for money and your salary is a cap on your income potential. While you certainly can earn a nice salary, as soon as you stop trading time for money your wage will also cease. The fact of the matter is that no one can build wealth and become wealthy through the wage system.

Caveat to this Philosophy

There are only two types of people that could possibly build wealth through a wage system. Now, you might be saying, “I thought you just said no one can build wealth through the wage system?” Here is a caveat! The only people that can possibly build wealth through the wage system are top-level corporate executives and pro athletes. However, when we closely analyze corporate executives we find that most of their income comes as a matter of profits, not wages. How is this possible? Well, top-level corporate executives, such as CEO’s, can make up to $400K, a very nice salary by all accounts, but their shareholders stake in that company is what allows them to make 10 and 20 million dollars in profits every year. There are no real wealth secrets there, just employees with very high salaries.

Wage System Downfalls

There are many obvious problems with the wage system. For one, it does not allow for multiple streams of income unless you work 2+ jobs and work yourself to death. It is also very low-risk. If you decide to work for the rest of your life and if at one point during your career you lose or quit your job, you can always find another job. However, this is definitely not the way to build wealth or earn multiple streams of income.

Take Action: Build Wealth

Invest in yourself! Stop trying to decipher the wealth secrets or wealth building secrets of the rich. Do some research to discover what industries are making millionaires and align yourself with individuals that have the same goals to create multiple streams of income and build wealth, as you do. Create a plan that will allow you to strategically move into the profit system and away from chains wage system. This might mean taking some of your current wages and investing to start a business. Do daily meditation on your goals to build wealth and when doubt creeps in, weigh the alternatives. This is sure to get you right back on the right system.

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1. 3 True Wealth Secrets School Failed to Teach You!