How much have you compromised your free time voluntarily to make more money? Not alone are you. But recent research indicates that it may potentially compromise our happiness to prioritize money over time.
In a recent survey, an assessment was made on 1000 students of The University of British Columbia to know whether they tend to prioritize time over money or money over time. The majority of students reported prioritizing time. Almost 40% reported prioritizing money (Source: Harvard University Review)
The researchers found that a year after graduation, students who prioritized money ended up less satisfied compared to their classmates who chose to prioritize time. Even after controlling for their happiness before graduation and accounting for their various socio-economic backgrounds, the findings remained the same.
Of course, that doesn’t mean that the next promotion you’re offered should be turned down. An analysis of information indicates that, on average, wealthier individuals are happier. But it won’t inevitably boost your satisfaction by making lots of money. How you invest, save, and think about money shapes how much happiness you get out of it.
Yes, it’s true that financial independence is all about money, but it’s not about living a successful life. This distinction is critical. We have all seen the wealthy who are unhappy, and the poor who are happy. Research also indicates that there is a small relationship between money and happiness.
Below are the ten key principles I feel may help you to achieve true wealth — both financially and personally.
1 Get Deeply Motivated
You ought to be motivated more intensely by internal goals than just the external trappings of wealth to succeeding in building wealth.
You want a cause that will make your life transform and drive you deep enough to overcome all the obstacles between you and financial freedom.
The following are internally driven goals that might focus your attention long enough to succeed:
Freedom: Pull yourself away from the daily laborious jobs so that you have more time to develop, create, and live to the fullest of your ability. Use your creativity to help others achieve their dreams too.
Charity: Giving back to our communities makes us feel good as individuals, causes us to be more socially aware, and encourages us to bond with our community as we team up to help those in need. The more you have, the more you will be able to offer. The Charitable Funds often provide financial resources o empower great social and environmental causes.
Growth: You will have more time to pursue personal freedom when you have financial freedom. In your outer world, wealth becomes a mirror of the wealth in your inner world. By impacting other areas of your life, the principles that contribute to financial wealth can also lead to true wealth.
Leadership: You should grow your wealth ethically and with pleasure so that you can lead people by example and motivate them to rise above the mentality of financial mediocrity.
Building wealth is not easy and you need to focus on these deeper causes. Your journey to financial freedom may not be smooth and may face various hurdles. You must be motivated by a commitment that runs deeper than just the lifestyle that money can buy.
2 Give More Value Than You Take
Albert Einstein once said, “Do not try to become a person of success but try to become a person of value.” The person who adds value to the team and community is the most valuable person.
What we do for ourselves dies with us; what we have provided to others and to the world remains and is immortal. Think of some ways you can add value and go to do it for others today! But make sure your motives are right when you do so.
Adding value to the world by giving more than you receive makes everyone better off. That's the way you create true wealth. By improving your own, you improve others' lives. The only way to gain the confidence of another person is to contribute to other people, adding value to their lives, and it's one of the few ways to get someone to trust in you. This is important in many aspects of life for obvious reasons: leadership, partnerships, marriages, communicating with new people, and especially with your family.
There are many ways we can add value…
Make yourself more VALUABLE to others
Know and relate to what others VALUE
Of course, there are people who have acquired financial empires by exploiting others but this can never lead to happiness or fulfillment. Exploitation may bring economic benefit but giving value, brings happiness and fulfillment as well as wealth and that is true wealth.
3 Live With 100% Integrity
Success will come and go, but integrity is timeless. At all times and in all circumstances, integrity means doing the right thing, whether or not anyone is watching. It takes courage to do the right thing, regardless of what the consequences are going to be. It takes years to build a reputation for integrity, but it takes just a second to lose, so never let yourself ever do anything that would harm your integrity.
Do not harm, encroach on other property, break moral law, or harm the environment. In pursuit of financial wealth, don't lie, disrespect, or abuse. The rule is simple: if it doesn't feel right, it probably doesn't feel right. You probably shouldn't do it if you don't feel comfortable telling your partner, kids, and parents what you are doing.
We live in a world where integrity is now almost inadequately talked about. We are living in a world where "the result justifies the means" has become an acceptable school of thinking for many. All in the name of making their quota for the month, Salespersons overpromise and under deliver. Entrepreneurs overstate their proformas because they want from an investor the highest possible valuation. A mistake they have made is covered up by customer service representatives of the company because they are afraid that the customer will quit them. In job interviews, applicants exaggerate because they desperately need a job. Employees call in “sick” because they don’t have any more paid leave available when they actually just need to get their shopping done. The list could go on and on, and the person committing the act of dishonesty told themselves in each case that they had a perfectly valid explanation why their lack of integrity was justified by an end result.
After all, in the examples above, each person may have achieved the result they wanted at the moment, but unfortunately, that momentary result comes at an incredibly high price with far-reaching consequences. That person has lost his ability to be trusted as a person of integrity, which is the most valuable quality in his or her life that anyone can have. Profit in terms of money or power is temporary, but profit in a network of people who trust you as a person of integrity is forever.
Every one person who trusts you will spread the word of that trust to many of their associates and the word of your character will spread like wildfire. The importance of the trust others have in you is well beyond anything that can be measured.
For entrepreneurs, It means investors who are willing to trust them with their money. For companies, it means customers that trust giving them more and more business. For you, it means having an army of people willing to go the extra mile to support you because they know that recommending you to others would never affect their own reputation of integrity. The value of the trust that others have in you goes beyond anything that can be measured because it brings limitless possibilities and endless possibilities with it.
Never choose personal ambition over honesty, because no amount of financial wealth can replace a good night's sleep, a clear conscience, and a peaceful mind.
4 Be Courageous
Humans are social creatures that make us cautious to venture independently. Yet, wealth does not come from following the crowd. It results from doing what others will not do so that you can have what others can never do.
Being a self-starter and being self-responsible requires courage. Finding new paths and developing new skills requires courage. To stand out from the crowd needs courage.
It takes courage to dream, the courage to believe in those dreams, and even more, the courage to make them a reality to act on your dreams. Courage is about taking steps to act and exist outside your comfort zone. Live with courage so that you can live fully and experience true wealth.
Courage can be Learned:
Courage can be learned and developed with practice. It’s as simple as ‘correct and continue’. Here are 7 things you can do to become stronger than you believed possible, to help you grow confidence, and break the shackles of fear.
- Know Your Why: When it comes to your financial dreams, to make the progress you desire, you have to identify your WHY…
- Be Vulnerable: We're scared of showing people who we really are, of exposing ourselves, so we avoid the one thing that can give us more courage: vulnerability. Your ability to be courageous expands significantly once you can allow yourself the feeling of vulnerability.
- Accept your fears: In order to beat anything in life, first, we have to acknowledge it exists. You deny yourself the courage to overcome it by denying the fear exists. Be as honest as you can and identify what is the worst that could happen. if you were to do the thing you fear. Accepting the worst-case scenario also has the powerful impact of dissolving your fears to embrace.
- Expose Yourself to What you Fear: It takes a lot of courage to face your fears, but yes, it will motivate you to resolve that specific fear by exposing yourself to the things you are afraid of. The more you do something and realize it's all good for you and you come out unharmed at the other end, the less you're going to be scared of it.
- Focus on What you Want: This is a simple thought, but the one which is full of power.
You had your WHY identified earlier. This move needs you to train yourself to stay focused on what and why you want. Your mind is a powerful instrument, and the more you focus on the good of what you want, the more it will help you in achieving it. Fill your mind with positivity.
- Focus on the people or cause you’re standing up for: It’s easier to be courageous on behalf of others than it is for your own sake.
- Courage takes Practice: Courage takes practice, just like something worth having or being good at.
5 Be Disciplined
Wealth is the accumulated outcome over a lifetime of several little things added together and compounded. Any lifetime goal (including wealth building) can be achieved with a few key habits and a little bit of time.
It's pretty simple indeed. Just as regular savings compound daily deposits into wealth, habits compound your daily actions into automatic wealth. It is the same concept that is applied in your life to two different resources: money and time. Think twice if you don't believe you can build automatic wealth because your financial goals are just a few daily habits away from being achieved. The end result is not a question of "if" but of "when".
You must immediately begin the right habits. Starting today and persisting tomorrow needs the discipline to overcome procrastination. Action is the only way to solve a problem. Anything less is merely an excuse.
"Magical thinking" is another obstacle to be disciplined, daily habits. This is the false belief that, without a specific plan or action causing it, financial security would magically emerge out of thin air. Wealth grows because, to make it happen, you do what it takes. If becoming rich was easy, everyone trying to sell you a book or a system would have taken their own advice and become rich. But what is possible is building wealth and becoming rich over a period of time Having the right mindset, learning how to manage your personal finances, making smart investments, and growing income will all help you overcome financial challenges and build a prosperous future — probably much faster than you think.
Your discipline is the key to achieving any goal or dream, no matter how big or small it is. In reality, this is so important that the lack of discipline makes you waste time, opportunities, and qualities which you have.
In fact, you may have no idea how you can achieve your goals, but with discipline and consistency, you will find your way when working on it. If you have to wait until you are in the mood to do it, to focus on it, to study it, to develop yourself, you'll find yourself doing nothing most of the time.
Discipline is a tough ingredient that will serve us as a great foundation for our lives. Not just to acquire big wealth and buy all the things we want to buy, but to grow as an individual, as a character, and have the power to get any beautiful and sweet thing we want. Discipline will serve you in your life as an agent of achieving love, health in your body, and anything else you want.
6 Embrace Delayed Gratification
The problem is that consumerism causes your scarce resources to be diverted towards the lifestyle and away from wealth building.
The reality is that wealth is a form of delayed gratification. Wealth builders live modestly by investing less (in money, time, and energy) than they can afford so that in the future they can invest the difference for greater value. They understand that happiness does not result from material trappings of wealth, since doing so will deter them from seeking the deeper purpose that drives them to success.
You may have observed that millennials, in particular, put more value on experience than they do on material objects if you are an observant person. Minimalists excel both in their business and personal life by adhering to the ideology of "less is more."
If lifestyle is your cause, then consumption becomes the priority, making wealth eternally inaccessible.
7 Create Leverage
Leverage is a primary success principle for accumulating wealth. By trading time for money, you won't get wealthy and you can't do it all yourself.
Building wealth requires you to work smarter rather than harder by applying the following principles of leverage:
- Time Leverage: By outsourcing your work so that you are not limited to 24 hours a day
- Systems and Technology Leverage: Use other people's systems and technology so that you can do more with less effort.
- Marketing Leverage: Use other people's platforms and databases to reach millions with less effort.
- Network Leverage: Other people's resources and connections so that you can expand your network beyond your own.
- Knowledge Leverage: You should learn from the skills, expertise, and experience of others so that you can make use of more knowledge than you would ever possess.
By using tools that extend beyond your own, leverage enables you to create more wealth than you could ever achieve alone. This allows you to build wealth without being restricted by your personal limitations.
To produce leverage, we all have one input, that is Time. How we want to invest that time corresponds with the potential leverage that we can create. Leverage = value. Value = wealth. Wealth = freedom.
Leverage is commonly associated with risk, but it is the most powerful tool available for wealth creation when it is used consciously and prudently. What makes it even more important is that leverage can be used in any business, in stock and real estate investment, in your career, and even in everyday life.
8 Steward Your Wealth
Stewardship is described as "the job of supervising or caring for anything, such as an organization or property." We must take good care of our money if we are to be good stewards of it. That's not necessarily about not spending it.
Money is nothing more than a device that comes with a responsibility to use it wisely. The rich man is a fool who dies without arranging his affairs to assure that his wealth does well during his lifetime and after his death, Money isn't everything, and we're not supposed to worship or obsess about it. But it is wise to analyze how we use it and being intentional with our choices.
You have the potential to bless yourself and your family's life now and in the future by leaving a legacy of wealth. You can also go beyond just expanding the circle to include the lives of everyone who follows you. You would be in the unique role, as a successful wealth builder, to organize charities that can do a great social impact.
Always remember that wealth is not something you possess.it is a flow that has found a temporary parking place under your stewardship, This stewardship will eventually transfer to others like all things must pass (including you). The solemn duty of the wealth builder is to wisely use this temporarily gifted power so that it provides maximum benefit for all those who are impacted by what you created in your lifetime.
9 Treat Wealth Like a Business
As a wealth builder, you are in the business of personal financial management and must manage your personal wealth just like a successful business being run by an entrepreneur.
Without a business plan, you won't build a business. Why should it be any different to build wealth?
Build a wealth strategy based on tested business principles. These principles include, just to name a few, competitive advantage, leverage, accurate record-keeping, and accountability.
Your personalized wealth-building strategy should also recognize your unique skills, interests, and resources, and much more.
When complete, your wealth plan will be customized to your unique life situation, while honoring the proven success principles without which no wealth plan is complete.
Manage your money as if it were a business. Anything less will slow down your journey towards wealth.
The wealth-building principles explained here lead to true wealth, not just monetary wealth. The objective is not just to become rich, but to build a balanced, fulfilling, wealthy life.
The proverbial saying 'Rome wasn't built in a day' suggests that a complex task or great achievement takes time and effort and should not be rushed. This holds true for wealth creation too.
Wealth means different things to different people, and it can seem elusive or out of reach to many. But to map out what your target wealth level is, and how to get there, you can use a system like the one mentioned here. You will begin to see realistic paths forward when you split a large process like wealth accumulation into smaller variables.