Twelve Secrets of Wealth

Here I will share with you my policies, which I call, The Twelve Secrets of Wealth. rnWealth Secret No.1rnWatch Whichever Way the Crowd is going and Go in the Opposite Direction. rnNinety five per cent of the population aged 65 are dead, dead broke, or on the pension, so why would you want to go where most other people go? It will be difficult because you will be going against what most people are doing and you will be out of the ordinary and therefore, perhaps, isolated. But I can assure you of more friends in the long run— real friends who will admire you for your courage. rnWealth Secret No. 2rnLook for Problems, as they are Often Opportunities in Disguise. Often, in real estate terms, it’s finding things that people don’t see, or seeing the property in a different manner— creating something different. In a gold mine, if you look for dirt you find dirt; however, if you look for gold... rnWealth Secret No. 3rnUnderstand ValuesrnKnowing how to value things is very important. Until you know value, everything is worthless. It is not about price, it’s about value. rnIt’s about buying below the average market price and selling above. In real estate terms, there is an average market price and property is either sold 10–30 per cent below that average price, or 10–30 per cent above that average price, depending on the motivation of the seller or buyer.rnWealth Secret No. 4rnMoney is Just an Idea rnIn fact, money is a complete illusion. People of ten confuse value with cost. It’s a common assumption that if you pay a lot, it must be worth a lot.rnMoney and value are often in the eyes of the beholder. rnMoney can be easily created with positive action, as well as easily lost with negative action. So if you put money in its proper perspective, it’s just a tool. Something that you can create from the position you take in life. rnMoney always flows to great opportunities. Money is always attracted to great ideas. rnWhat do you think is the most important—to have a lot of money, or to have a great idea? The idea is always the most important, in fact it will attract the money necessary to have the idea work if the idea is good enough. rnWealth Secret No. 5rnHe Who Lives by the Golden Rule Gets the Gold Integrity and honesty will pay off in the long run, and you’ll get to keep the money.rnWealth Secret No. 6rnBe Prepared to Take Risks and Face your FearsrnThere is no shortage of opportunities in Australia; or the world, for that matter. There is, however, a shortage of courage.rnIn all the fairytales; if you want to marry the princess, you have to slay rnThe dragon. Your greatest dragon will be facing your own fears.rnA common fear, which is necessary to face, is borrowing money to invest. You will be asked to face this fear many times as you move out of your comfort zone.rnWealth Secret No. 7rnAttitude Problems are Greater than Money Problems In other words, you must have the strong, positive attitude of wanting to be wealthy. You must love a challenge, you must be goal orientated and you must consider obstacles and barriers as just temporary inconveniences. rnWealth Secret No. 8rnAccept Failure as a Learning Experience If you are not failing, you are not trying hard enough. It’srnlike skiing down a mountain—if you are not falling over, you are not extending yourself. "Successfully wealthy people always have failures, they also always have more successes than failures. Unsuccessful people not only have few failures, they also have few successes because they don’t do very much. They tend to stay in their comfort zone; tiptoeing through life, hoping they’ll make it safely to death and end up on the pension anyway.rnWealth Secret No. 9rnYou Have Abundance in Your Life and You Have all that You Need to Acquire Absolute Success It all depends on just one specific aspect of your life, and that is, who are you going to become to have his work for you? It is the ‘becoming’ of a successful financial person that leads to the ultimate outcome of success.rnWealth Secret No. 10rnHow is Your Networking? Using Your Network Will Save You Leg Work you need people you respect, coaches and advisers, in all areas around you—including an excellent tax accountant, lawyer, planner and financial adviser to do your financial engineering.rnUltimately, you must take responsibility. Whilst they are accountable to you-in the end make all your decisions. rnWealth Secret No. 11rnInvest for the Long Term Getting wealthy is along-term business and a lifestyle, not a ‘get-rich-quick’ scheme. Take a position, hold that position, and choose it carefully. Once chosen, take along time to change your mind.rnWealth Secret No. 12rnBecome Consistent in Your Process of Being Disciplined in Acquiring Assets and Actively Managing Them Consistent routines bring results 99 out of 100 times. An average person with a modest routine of daily self improvement will out perform a disorganised genius.rnYou don’t have to be a genius; you just need to be consistent. rnBonus Wealth Secret: rnBe Open to New Ideas and Have Diversification as Your Form of Success Eighty per cent of all growth comes from the selection of the right portfolio mix. So, make sure that you understand the investment strategies and the investment products. You don’t necessarily have to be an expert, although you have to at least be able to explain it to somebody else and, particularly, yourself. rnIf you do not fully understand what you are doing, either don’t proceed or have a very small exposure while you learn whether or not this is a worth while venture.rnUltimately, as discussed before, there are only three areas to invest in: rn1.Property (P)rn2.Fixed Interest Securities (I)rn3.Equities (E). rnEverything on the planet is one or a combination of these three investments.