One of the rules of the rich is that if you wish to stay wealthy, you need to either buy or create assets that produce value. In other words, you start a company that provides a good or service that people believe they need and are willing to purchase from you because they feel that the value of your product, service, information, or whatever is equal to or exceeds the price paid. This is generation of income. If the amount of income generated by your assets exceeds the amount of your costs, then you have made a profit. An entrepreneur is someone who solves people’s problems on a profit margin.
The key is to select attractive assets that can produce income or appreciate. An asset can either produce current income, appreciate (and depreciate), or both. The choice of which is a decision that is personal in nature, but a good way to establish a baseline is to ask yourself if you were to stop working, would your assets continue to put food on the table and pay your monthly obligations? Having your investments not only sustain you but produce more than you need is one way in which wealth was created for hundreds of years before Wall Street got so sophisticated and abstract that financial games came into the picture.
If you want to make real money, then the first thing I suggest is that you get educated. Making money is an intrinsic activity of all of humanity, and mankind has developed countless ways to do it. There is nothing inherently evil in the process of making money, and the notion is illogical, but that is one of the underlying tenets in our present education system. We are taught from an early age that making money is hard and that those who make lots of money are morally suspect. American culture studies programs at some of the nation’s leading universities have even gone so far as to teach the absurd and illogical notion that the rich became rich because they enjoy privilege earned on the backs of African slaves. Minority millionaires like entrepreneur Herman Cain, Earl Graves, Sr., and Reginald F. Lewis prove the utter nonsense of this notion, yet this is the illogical Progressive philosophy that has permeated our education system.
The truth is that it is not difficult to make money once you understand that money is a tool and that it can be used, through various processes known collectively as finance to create real, tangible wealth. The most difficult thing about our relationship with money is giving up the idea of what that income is or should be and where it will come from. For example, most people would argue that they are on a fixed income and there is only so much money they receive each month. Others say their monthly paycheck is XYZ dollars and they don’t want to get a second job.
In the first example above, the person has defined the boundaries of his income and he does not allow the space for other income to flow. In the second example, the person has defined a limited channel of how and where the money is to appear.
I believe that to create real wealth one must be willing to abandon one’s limited thinking, remove the boundaries around our abundance, and stop outlining how it is to appear in our lives. Remember not to create boundaries and remember not to define the outcome. Most importantly, stop letting people who are motivated by jealousy and envy dictate what your limitations are. Maybe they think that wealth is evil and that rich people are heartless, but they never can answer the one basic fundamental question: if you, Miss Liberal, take away the money from those who make it to give it to those who only choose to take from society, how are you going to force the wealth creators to continue creating what you so freely take? When the wealth creators go away, Mr. Progressive, who is going to pay your bills? After you’ve created a level playing field and enforced economic equality and social justice on everyone, Comrade Communist, how are you going to provide basic goods, like food, and basic services, like electricity and clean water? If everyone is equal and everyone is entitled, what is the incentive for anyone to initiate any activity? The ultimate answer for your utopian dream is slavery and dictatorial tyranny. History has shown time and time again that there is no such thing as all things being equal. That is why Jefferson wrote that our inalienable rights were life, liberty, and the pursuit of happiness. Nothing is guaranteed in life, especially happiness.
Ziad K. Abdelnour is President & CEO of Blackhawk Partners, Inc. , http://blackhawkpartners.com/ , Founder & President of the Financial Policy Council http://www.financialpolicycouncil.org/ and Author of Economic Warfare: Secrets of Wealth Creation in the Age of Welfare Politics http://www.amazon.com/Secrets-Economic-Warfare-Creating-Regulation/dp/1118150120/ref=sr_1_2?ie=UTF8&qid=1311437307&sr=8-2