Wealth Creating Principles

There are certain principles that if followed will lead to riches. These principles are the principles followed by those who build wealth through business and/or investing. If you diligently follow these principles then the laws of nature suggest that you too will become wealthy.

Throughout this article I will be referring to the "self made rich". These are the people who have gone from ordinary circumstances to wealth via a business or investment strategy. It does not include those who have made their wealth from other vehicles such as sport or entertainment.


The reason why I use this particular group as a guide is that the members of this group have in common with each other certain principles that they follow and they are principles that anyone can also learn and follow. Here we will look at seven of these key principles for creating wealth.

#1: Passion

There are three areas that the self made rich tend to be passionate about.

Area 1 is what they do to earn their living. They choose to devote themselves to doing something that they love and then they work out ways to produce money from following that passion.

Area 2 is managing their money.

Earning a living from doing what you love is not enough on its own to ensure that you will become rich. You have to learn to manage the money that is coming in. The self made rich all enjoy managing their money and they manage it well.

Area 3 is investing. Once you are managing your money well you will be allocating some of that money to investing. The self made rich tend to do their own investing rather than put it in the hands of outside money managers. They develop a passion for how investing works and put in the time and energy required to develop expertise in their chosen area of investing.

#2: Awareness

Good money management starts with knowing exactly where your money is going. The self made rich always know where their money is going. In fact almost all of this group keep a notebook on them at all times and write down every cent they are spend as they are spending it.

Each day they enter their spending from the notebook into some more sophisticated system such as accounting software. In this way they can regularly analyze exactly where their money is going over both the short and long terms and be aware of what value they are getting from their money.

#3: Budget

The self made rich are budgeters. They always make their main budgeting priority allocating money to the job of multiplying, either through investment or business. The most common minimum amount that they invest is 25% of their annual post tax earnings.

Most people think that you would need a large income in order to invest 25% but it doesn't work that way. The self made rich do this from day one even when they only have a small income. They do this by making whatever sacrifices they need to in order to stick to their investing goals.

#4: Vehicle

There is no one wealth creation vehicle that all the self made rich use. They each choose a vehicle that suits them. They tend to focus on one vehicle, rather than a broad balance, and work to become experts in that vehicle.

The most popular vehicles amongst the self made rich are business, property and shares.

#5: Knowledge

The self made rich become life long students of wealth and success strategies and of personal development. They all read a lot and take every opportunity to learn. They are hungry for knowledge.

Then they do something that most people fail to do; they put their learning into practice.

#6: Leverage

The self made rich use the principle of leverage every day. They leverage their income, their business and investing returns, their time, they knowledge and their opportunities.

As a result they average much greater annual increases in their net worth than what the typical person does.

#7: Time

It takes time to build wealth so the sooner you start the better. The self made rich are not overnight successes. They develop their strategies and then they diligently apply themselves to following those strategies for as long as it takes.

The people who are looking for the get rich quick shortcuts generally end up broke. The real short cut is to consistently do what the self made rich do and learn to enjoy doing it.

By: James Delrojo