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Article by Gary Wilde: CEO Wilde Insights™ in Credit Health
This is the last in a 3-part article written by Gary Wilde - behavioural specialist and turnaround expert. Enjoy.
About the Author: Gary is renowned for his ability to get to the root of problems and produce exceptional results through his unorthodox approach to business and personal challenges. He is a Corporate Turnaround Specialist and Behavioural Adaptation Strategist. Gary is also a certified NLP Coach, a practitioner in Timeline™ Paradigm Techniques and Ericksonian Hypnotherapy as well as a Demartini Method Facilitator. More of his articles can be found here.
The purpose of this series of articles is to reveal the secrets behind why the rich get richer and in doing so, reveal how anybody can achieve a status of financial independence or wealth, by adopting appropriate and empowering thinking and behavioural habits.
In today's article, I will reveal the single most powerful secret behind why the rich get richer, the poor get poorer and the middle class get deeper into debt! However, before I do that, let me summarise some of the powerful and life changing insights that were shared in Parts 1 & 2 of this article:
1. The outcomes we achieve in life, whether favourable or not, are a direct result of the choices we’ve made, and the actions we’ve taken in the past. If we want to achieve better outcomes in the future, we must learn from the poor choices we’ve made in the past and learn how to make more empowering choices.
2. Patterns of success or failure are the result of our thinking habits and behavioural patterns. If we want to change the pattern of results we achieve in our lives, the only way to do so is to change our thinking and our behaviour.
3. Being rich, middle-class or poor is not a blessing or a curse, it is in fact a skill that is learnt and mastered over an extended period of time. If we want to significantly improve and elevate our financial status, we need to be committed to doing what it takes to acquire the skills that will enable us to achieve this... and maintain it.
4. The rich/wealthy think and behave very differently to the middle class when it comes to spending, saving, investing and borrowing money or making use of short term credit facilities. While the middle class have the means to create wealth, they lack the self discipline and appropriate habits to do so. Only those people that have the courage to face their shortcomings and are committed to resolving them, will successfully make the transition into the elusive realm of the rich and wealthy!
Based upon our research and experience in the fields of wealth creation and behavioural causality, there is one underlying secret to creating wealth and maintaining it, that very few know about... one secret, that if truly understood and mastered, would automatically facilitate the acquisition of the necessary knowledge and the formulation of the necessary habits, to create and maintain financial wealth in your life...
The secret behind why the rich get richer... and how you can too, in its simplest form, is this:
The rich value money more than they value the things that money can buy!
When you value being in possession of money, more than you value owning the possessions or enjoying the pleasures that money can buy, you will always have more money than you will have possessions, regardless of how many possessions you may have! Paradoxically, someone that lives according to this formula, will eventually accumulate enough money to afford whatever possessions they wish to own, or pleasures they wish to indulge in and can then enjoy the lifestyle that the vast majority of people only dream of.
People within the middle class of society place a high level of importance on consumption and instant gratification... as opposed to investment and delayed gratification respectively. They place greater value on the possessions and pleasures that money can buy than they do on posse ssing money itself... so much so, that they are even willing to spend money that they do not have, to acquire these things ... hence the reason why the middle-class will always get themselves deeper into debt!
The bottom line is that if we don't value and get real enjoyment out of having money in our accounts and income-generating assets on our balance sheet, more than we value and enjoy the things that money can buy, we will always expend more time and energy on spending our money than we will on saving and investing it, or finding new and better ways of making more money!
To create wealth you have to be earning more money than you spend. It's a very, very simple equation, yet so few people take the time to do the mathematics when deciding to buy a better car, house or TV, or another bag, watch or suit that they don’t need. Unfortunately however, even those that do the maths will likely find themselves compelled to spend, because we are not as rational as we'd like to think. We are in fact emotional beings that are compelled to do things that promise to attract pleasure or avoid pain in our lives... and for the vast majority of people, instant pleasure today is more attractive than a lifetime of pleasure tomorrow!
Therefore, the only way to change our destructive or devaluing patterns of behaviour and begin to create wealth for ourselves, is to reach a point where the pleasure of saving and investing money is greater than the pain of delaying gratification. When you get this right, your spending, saving, investing and borrowing behaviours and patterns will naturally begin to change. Thereafter, within a very short space of time, you'll find yourself enjoying the fruits of your actions and celebrating the steadily growing balance in your bank account.
It is ironic that in spite of the fact that the overwhelming majority of middle-class people express the desire to achieve financial independence, even wi th the formula in their hands, less than 0.3% will succeed. The reason for this isn't because there is a scarcity of resources or money in the world, but simply because of people's overwhelming resistance and reluctance to change. If you want to change your financial status, you need to overcome this resistance by finding one or more powerful and compelling reasons to achieve financial independence!
I know what it takes to go from being crushed by debt and being left with only the clothes on my back, to being debt free! Through the years, I have carefully observed and chronicled the transformation of my own thinking and behaviour and drawn upon the wisdom of people that have achieved financial independence to acquire the knowledge about wealth creation that I have today. Because of this, I am now in the privileged position to be able to confidently show those that are willing to learn, how simple it is to achieve financial independence for themselves through o ur one day Master Class entitled, “Wealth Mastery: Anyone CAN be Wealthy!” (See below for further details).
Regardless of whether you are earning a salary as an employee or running your own business, anyone can be wealthy! Becoming wealthy has less to do with how much you earn than it has to do with how you manage your thinking and behaviour and how you manage your money.
Until next time, choose your thoughts and actions wisely, commit yourself to doing what it takes to overcome destructive patterns of behaviour and next time you feel compelled to buy something that you don't really need, STOP and ask yourself, “Am I creating wealth or simply perpetuating old spending patterns that do not serve me?”