Don’t lose money

Money has a personality and mind of its own. It is attracted to those people who cherish it, look after it, take care of it and keep it. It runs away from those who waste it, play with it, squander it and otherwise lose it. Don’t lose money, keep it. The more you keep, the more you’ll get.

Do mind your own business!

You are the MD of your own personal services company. Your mission is to give value for money. You commit to giving value; in exchange you get money. The more value, the more money. To increase the money, increase the value. You must become the best possible personal services company in your field and thereby command the highest possible wages in that field.

Do make profits

You must learn to live on as small a percentage of your income as possible. This may start as 90% but your goal is to bring it down as far as possible. The rest is your profits. A portion of these profits should go to the causes you support. The rest should be saved as the beginnings of your personal fortune.

Do the paper work

These come in the form of the three R’s. Rules, records and reports. You should establish the rules for handling money in the form of a personal budget. Your budget will assign your money before it arrives so that your overheads and fixed costs are met first. It can also act as a deterrent against impulse spending. The budget is only useful if you stick to it. You should then keep records in the form of invoices, statements and receipts and should at all times know exactly how much money you have at your disposal in the bank. Finally you should take time out every month to review your financial performance and celebrate your profits.

Do insurance

Insurance is necessary to pay for expensive emergencies that may crop up. Your health, vehicles, valuables and life should all be insured so that you never touch your savings to deal with an emergency. Be careful not to over insure and check your policies carefully.

Do wealth creation in stages.

The stages are; stability, security and independence. You cannot jump from financial instability to financial independence. Your first job then is to become stable and secure. This comes in the form of the three I’s; income, insurance and investments. Upon the foundation of financial security in the form of income, insurance and investments, you can begin your personal programme for wealth creation.

Do create income streams

You should maximise your profits by finding additional income sources. These may come in the form of part-time work, multi-level marketing, boot sales etc. This extra money is all about savings. It should all go into your savings for your personal fortune.

Do Patience

Wealth cannot be created overnight. Your wealth creation plan should be at least a 5-year plan but preferably a 10-year plan. In five years you can become wealthy (don’t need to work for a living), by practising these principles. After 10 years of practising these principles your wealth is virtually guaranteed.

Do Buy assets

That is, anything that appreciates in value is an asset. You should use your savings to buy assets. The other word for this is an investment. When you make an investment you are really buying an asset. Something that may be sold in the future for more money than you bought it. These could be company stocks, property, antiques, a business franchise etc. The rule is to investigate before you invest. Also remember that risk is always linked to returns. Anything promising high returns is a high-risk investment. Anything promising low returns is a low-risk investment. You should continue buying assets until your income from your assets can sustain your quality of life weather or not you work another day.

Do give value for money

People give you their hard-earned money for one reason and one reason only; they give it in exchange for a perceived benefit. If you want to become wealthy, your job is to figure out how you can add the most value to the most people. “How can I enrich the lives of others?” Is the big question for wealth creators. You can only create a personal fortune by focusing on how you can enrich the lives of others.

Do investments

Investors lend money to companies if they are convinced that they will get their money back with profits within an agreed period of time. By so doing they effectively rent out their money. This beats putting it under the bed in a biscuit tin. Technically speaking any time you part with money for a fixed period expecting it back with interest, you are investing. By doing this you put your money to work for you and enjoy an income that other people work to generate.

Disclaimer: Wayne Malcolm is not a financial advisor. The ideas expressed in this course are based on his research into this field. Before making any financial decision please, seek qualified financial advice.