There are several fundamental principles that you can master in order to create wealth now. It is not a secret that so many people are putting these fundamentals wealth principles to work today, and are reaping great success from using them.
So what are these wealth principles? I am glad you asked. Let us start with principle number one. In order to create wealth, you should eliminate your debts. That sounds like it is easier said than done. Let us take a closer look it though. If you are paying out a large portion of your income in interests and other finance charges, you will not create wealth any time soon.
Here is the principle at work. Not one cent of your interest payment will help to build your wealth unless you are on a strict time plan to totally eliminate those debts from your life all together. If your debt payment goes on for years without ever being reduced, that is time and money wasted and will not build your wealth. Notice I said time wasted. If you owe debts you must pay it back, but you should do so with haste. An acceptable time period for becoming debt-free is 5 years.
The second principle is to maximize cash flow. This is crucial so let me explain. If you have most of your money in simple savings accounts that pay you 3% to 6% per annum, you are not going to build wealth quickly. Do not forget that those very same banks take your money and trade forex earning 20% and more per month! They build wealth fast, but not you, if 6% per annum is what they are paying you.
One strategy that you can use to create wealth in a short time, is to look for and take opportunities in a vast and growing market, then invest what you make in a safe investment that pays you compound interest. Let me explain. The problem with earning more money, is that most people do not have the discipline to save that money. The key to rapid wealth creation is to earn more money and then invest it properly over time.
Let us look at an example. If you are earning $2500 per month and you are left with $900 after all expenses each month, you can save a fair portion of that money. Let us say you can save $400 per month after all expenses. After 5 years of saving $400 per month, paying 6% per year, compounded twice per year, you will earn $28,876.00.
Now, let us put some excitement into those figures shall we? If you were to start a small online business and you only earn a net profit of $500 per month, you would do very well if you were able to save all the net profit each month. How well would you be doing? To be exact, your monthly payment of $400 + $500 ($900) each month would earn you $64,299.66 after 5 years if all conditions above remain the same.
The only hindrance between you and that extra net profit, which will help you to create wealth now, is your possible reluctance to learn new ways to earn extra money. If you can get past this inertia, you can do it.