The following post is part 1 in a 4 part series:
“How to Be Wealthy: The ABC’s of Building Wealth.”
Part 1 (this post) is an overview and parts 2-4 will go into more details regarding specific action steps you can take to build wealth.
How to Be Wealthy? “It’s as easy as A-B-C…”
In 1970, a “little” singing group stunned the world by knocking the Beatles out of their Billboard Hot 100 #1 spot.
You know how this “little” singing group did it?
By having an 11-year old (albeit a very talented one!) sing the first 3 letters of the alphabet and count to 3…over and over and over!
The fact is, building wealth and learning how to be wealthy is not that difficult. It doesn’t take an advanced degree in finance or economics. The 3 steps to building wealth outlined below are so easy, a child could start doing them today…and many do!
So, without further ado…
Sit yourself down and take seat
All you gotta do is repeat after me…
A. Aim to give away some of your income (Building Wealth Step 1)
“Whoa, whoa, back up the truck. You’re telling me I have to GIVE away some my money in order to learn how to be wealthy?”
You’re probably thinking, “Sure, that’s easy for somebody like Bill Gates or Mark Zuckerberg because they’ve got billions of dollars! I’m only making $XX,XXX a year though. If I give away some of my money, I won’t have any left!”
I’ll admit, this one doesn’t make much sense at first, but giving away SOME of your money will reveal your attitude towards ALL of your money.
Giving away SOME of your money will reveal your attitude towards ALL of your money.
I’ll expound more on this idea in Part 2 of this series. For now though, just know that IF your attitude towards money is healthy, then it’s a LOT easier to accomplish the next step in learning the ABC’s of building wealth on our path to learning how to be wealthy.
B. Be a good steward of your resources (Building Wealth Step 2)
As the saying goes, “There are no U-Hauls behind hearses.”
When you die, it doesn’t matter if you were Adolf Hitler or Mother Theresa, you won’t be taking any material possessions with you. Someone else will fight over your stuff (or lack thereof) after you’re dead. And after they’re dead, someone else will fight over their stuff, and after they’re dead…well you get the picture!
If you want to learn how to be wealthy, you need to realize that you are not the true owner of your “stuff.”
Again, I’ll explain more how this plays out in “real life” and what it means to “be wealthy” in a future post, but we’ve still got one more thing to cover today…
C. Contribute money to savings (Building Wealth Step 3)
“I thought you said to give my money away? Now you’re telling me to save it?”
Ahhh, patience young grasshopper! Remember the previous step “Be a good steward of your resources”?
Part of being a good steward means being prepared to take advantage of opportunities and expecting the unexpected. An old proverb comes to mind that illustrates what this looks like in real life:
Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.
You see, even the lowly ant understands the idea of saving a little extra during the good times so that you are prepared for the lean times.
I’m NOT saying to hoard your money (remember, no U-hauls behind hearses…).
What I AM saying is that if you have a healthy view of how to be wealthy, saving a little money for the unexpected (and expected!) is a bit like owning an umbrella. At some point it’s going to rain, and when it rains, it usually pours! With that in mind, it’s helpful to have an “umbrella” (i.e. savings) for those “rainy days” (i.e. financial emergencies).
In Part 4 of this series, we’ll look at more specifics on how much to save and what to save for, but that should give you plenty to think about for now. (Sign up here to receive parts 2-4 of this series delivered straight to your email inbox!)
“…it’s as easy as 1-2-3.”
I’ll admit, there’s nothing magical or even original about these steps to building wealth.
In fact, it was once said that “there is nothing new under the sun” and so it is with financial advice. These principles for learning how to be wealthy, however, have proven true over and over since the beginning of time.
It doesn’t matter whether you make $2,000 a year or $200 million a year–these steps will help you handle money successfully and build wealth today.
Don’t believe me? That’s OK.
Some people didn’t believe that “little” singing group would be very successful either. If you still don’t know who they were or how that turned out, the video below should jog your memory!
Stay tuned for the next installment of this four part series where I cover “Giving-How to Be Wealthy: The ABC’s of Building Wealth-Part 2.”