14 May The #1 Secret to Wealth Building
Most people would say they could use more money in their lives. Couldn’t you? So, they seek out financial information and “get rich quick” schemes in order to increase their income. I have a lot of teaching in my book, Money Mastery, on wealth building. However, this is one thing that most people overlook. I cannot emphasize enough that you don’t know what you don’t know. In other words, in order for you to build wealth, you have to gain specific wisdom, knowledge and understanding. If you go into real estate or the stock market without a lick of knowledge, how do you think you’re going to fare? That’s right, not very well.
“Through skillful and godly Wisdom is a house (a life, a home, a family) built, and by understanding it is established [on a sound and good foundation], and by knowledge shall its chambers [of every area] be filled with all precious and pleasant riches.”
Knowledge, Understanding, Wisdom
The first step to financial freedom is to escalate by increasing your ability to earn. I had the opportunity to share this advice with several government ministers in Uganda when they came to a Triple X Factor presentation in Kampala. In that gathering of leaders (about 25 people), I was fascinated by some of the questions they asked. As we went around the room discussing the Triple X Factor, one of the younger men in the group asked, “What do we do here in Kampala when we don’t have a lot of resources or capital to be able to start businesses? What do we do?”
I told him that the one thing that he could do that wouldn’t cost him a lot of money was to increase his knowledge about how to do business and how to make money. I told him to seek education in any form. There are all kinds of people, myself included, who are giving free content out to the world on how to do business and build wealth. Take advantage of this! Read blogs and books. Listen to podcasts and watch videos. Find mentors in the area of wealth building. You increase your ability to earn by increasing your knowledge, understanding, and wisdom because you get paid for value—not for time. The more you know and have on your resumé, the more you can earn. In other words: the more you learn, the more you earn.
Unfortunately, I see people destroyed by a lack of knowledge all the time. They make the mistake of moving before understanding. In fact, I’ve made this mistake many times! But when it comes to obtaining knowledge, don’t just ask what the cost is, ask about the worth.
I recently bought a $1,997 program to teach me about a specific area of business that I wanted to grow in—Internet marketing. When I paid for that product, I felt good about the price because I knew I was going to get a lot out of it. I listened and learned. And then without any embellishment, made ten times what I paid for the program within two weeks’ of applying the principles it! I could have said, “Well, look how much that costs.” Yes, $1,997 is a pricey fee. But the program was worth was a completely different number. It became worth a lot!
I’m not suggesting that you go out and flippantly throw money on a wall to see if it sticks, but I am suggesting that you need to understand how you’re going to acquire knowledge and understanding.
Warren Buffett, the sage of Omaha, said the secret to making money is not losing money. Personally, I have lost a lot of money in the stock market, but the good news is that I had the money to lose. And the better news is that, overall, I still made more than I lost. When I started out, I lost a lot of money when I acted before having knowledge, understanding, and wisdom in the right areas.
You really need to focus on increasing your value in order to increase your income. You become more valuable by investing in yourself. Learn to pour into yourself. Be, as Jesus said in Matthew 10:16, “Wise as serpents and innocent as doves.” You will become more valuable when you learn to walk in the wisdom and the Word of God.
I am asked all the time, “Where do I begin in my journey in wealth building?” Or “I have a $1000 where should I invest it?” That answer is easy. You begin by investing in yourself. Spend the $1000 on obtaining knowledge you do not have. Attend seminars, purchase or rent audio or video programs on the subjects that help to know how to build wealth. Also, find the right people to associate with. That can broaden your knowledge and understanding.
Remember part of obtaining knowledge is becoming educated enough just so you know the right questions to ask. So to begin your quest on building wealth it must begin with obtaining knowledge about a particular category of investment or business, and learn the method, processes, and systems , along with developing an entrepreneur’s and investors mindset.
I teach more on wealth building and finances in my book, Money Mastery! You can purchase a copy here, or if you prefer to listen or watch, you can find an audio version here, and a video version here!
Do you have any questions on wealth building? Leave them below!