The truth about attaining wealth

   •  by rondouglas    •   7 Comments »

Ron DouglasHere’s a seemingly counter-intuitive finance lesson it took me a long time to learn:

You will never get rich by saving money and focusing on your bills and expenses is scarcity thinking. Let me explain…

In order to achieve abundance in your life, you have to first believe in abundance. You have to believe that there is more than enough money out there for everyone and it’s just a matter of doing what you need to do to get it.

Focusing on your expenses instead of increasing your income causes you to be limited in your thinking. Your attention and mindset turns towards limiting money going out instead of maximizing money coming in. Thoughts like spending is bad, you must cut back, there won’t be enough to pay your bills, etc. Scarcity focus.

The truth is, saving money will likely never make you rich. Lets say you save $2,500 a month, which is an extreme amount for most people, that’s $30k a year you’ll be saving. It would take 33 years to get to a million dollars only to discover that the money won’t be worth nearly a million dollars in 33 years. Sure, you can compound interest on that at say 5% a year and get there quicker, but inflation and taxes will still bring you back down to reality.

Now, I’m not saying not to save money. Trust me, I’m as frugal as they come. What I’m saying is, it shouldn’t be your focus because you will get what you focus on. If you focus on making enough money to cover your expenses, you will do so and still be living check to check like most people are.

You have to focus on abundance, on opportunities, on things that will produce wealth for you. Leverageable events that can deliver a big payout or a series of payouts.

If you want to attain wealth, the money you save should be viewed as capital. It should be viewed as money you have to put up as a good faith deposit just to be able to leverage other people’s money. It should be viewed as money you can afford to lose in order to take the risks needed to attain wealth. And you WILL take some losses, but who cares? You can get more money, but you can’t get more time and you likely can’t get back opportunities you miss out on.

To attain wealth, you need to invest in or build something that the world values at a monetary level consistent with the rewards you need to be wealthy. Read that again and think about it. Then leave a comment below :-)…

7 Responses to “The truth about attaining wealth”

  1. Robert says:

    Great post! You always find a way to connect with people on a deep level and do you know what that level is called, it’s called “The Truth”. Thanks for sharing your truth with us!

  2. John says:

    Hi Ron. I’ve been on your list since that you tube video program you had ( boy was I sorry to see that go-:(

    Although I’ve preached this lack of abundance mindset over-n-over to my wife, I only realized that what I’ve been doing is EXACTLY what I’ve been preaching to her that she is doing and ought to change HER mindset!

    “Focusing on your expenses instead of increasing your income causes you to be limited in your thinking. Your attention and mindset turns towards limiting money going out instead of maximizing money coming in. Thoughts like spending is bad, you must cut back, there won’t be enough to pay your bills, etc. Scarcity focus.

    I tend to focus on my expenses much of the time ( car repairs, cell phone – though this is in the process of paying me instead – cable, heating oil, etc., etc.) I have long-since discovered it comes from my up-bringing. Thanks for posting this and ( being one that does not usually read an entire blog-post – thanks for making it a short one-:) I’m glad i took the time to visit your blog. This was a GREAT reminder for me! Thanks SOOOOO Much!

    All the best, all the time.
    John F.

  3. Floyd says:

    You threw confirmation on what I already knew to be true in my mind, but never the less I just started thinking this way thank you.

  4. Arnold says:

    Another awesome post Ron! Great job as always. I just wish I had a solid way to become rich!

  5. Adam says:

    Really well said and succinct Ron.
    What I’ve always believed but great to hear coming from you.

  6. Kevin says:

    Easy to say. Hard to attain.

    • rondouglas says:

      Nothing worth attaining is easy. It may take work but it’s not uncommon or unrealistic…

      “A record-breaking 12 million people around the world were millionaires last year, with the US experiencing the biggest jump in super-rich residents. According to the annual World Wealth Report, the number of high net worth individuals – those with an investable fortune of US $1-million or more – rose by 9.2 percent.”

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