Money - Create and Accumulate Assets

Create and Accumulate Assets to become Wealthier

People want to be wealthy. Wealth allows people to have what they want and to avoid what they don’t want, but not many people take much time to study how other people became successful and wealthy in the past. Experts on success emphasize that the creation of material wealth starts from the creation of inner wealth.

1. Continuously keep improving your qualifications, products and services

We are paid for the results we achieve for other people.
We become wealthy to the degree we help other people become wealthier.
You can have anything in the world you want, if you help enough other people achieve what they want.

To create wealth, we have to think in terms of creating competitive goods and services for other people that can be converted into money.  Think what you can do to make your customers’ lives easier. Think how you can take away your customers’ worries and problems, and create more security for them.

How can a person invent new competitive products and services? We must create products or services that are better than what’s available on the market at the moment.

Take into account that by the time your product or service is on the market, society and the economy will move to the next level of development, and there will be more competitive products on the market than are available now. So, you must be a step ahead of the competition.

Imagine a better world 10-15 years from now or imagine the next stage of development of your country. The world is moving to a knowledge-based economy. Take an inventory of your knowledge, special talents and strengths.

Imagine the way you can contribute to a better world of the future. Keep acquiring new knowledge and developing systems that will allow you to generate income over the next 10-20 years. There are plenty of rich people around who look for good opportunities to invest their money in something useful for them.

Create a product or service people need and their money will flow to you. Implement the best idea you have and you will have an even better idea. (Usually we have a better idea only after we start implementing the idea we have.) Develop a strategy that will allow you to accumulate wealth over time.

2. Manage your expenses well

So, mastering a certain profession and good time-management skills are important to become wealthier, but people also have both internal and external barriers to creating wealth.

Managing our expenses well is also important to become wealthier. Our emotional system is a survival mechanism that has developed for thousands of years, but people’s emotions can be manipulated using modern media. Big corporations keep inventing new tricks to manipulate our emotions to their advantage.

They manipulate our value system through advertising to make us buy things we don’t need, but acquiring and accumulating more things than we need robs us of our time, space and wealth in the long-run. Most things need to be kept in order and maintained, which takes our time, creates hassles, and drains our energy and resources.

Many people don’t become successful, because they are not good at managing their irrational impulses, overcoming their temptations to blow their money on something ‘shiny’ but useless, and nor staying focused and on track long enough. Many people spend their money buying things they don’t really need and can’t afford, trying to impress their neighbors or colleagues who don’t really care.

Big companies learned over many years of their existence to interfere in our decision-making process and make us buy things we don’t really need. We have to switch from impulse spending to a developing investment strategy for your future success. We should not make purchasing decisions spontaneously, on impulse. This bad habit drains our resources.

This is immature behavior, because this ‘little’ bad habit robs us big time, especially over time. To get wealthier, we have to dehypnotize ourselves and learn to manage our emotions and expenses well. Make a shopping list of the items you need to buy in advance and follow the list while shopping.

3. To accumulate wealth, invest in appreciating assets

It is also important to understand way modern monitory systems function to avoid financial mistakes. The rules of money have not been designed to help ordinary people, and it has actually been set and functions to prevent people from becoming wealthier.

Money is not wealth, but it’s a medium of exchange, and money is not an ultimate objective. Money is a tool business people use to create goods and services for their customers.

Monetary systems serve those who issue money (or simple speaking own the machines that print notes). Our monetary system is a scheme designed by the bankers over hundreds of years to gradually rob people and, in a sense, enslave them.

It takes place on several levels. The amount of money we earn gradually diminishes because of inflation. Keeping our savings in a form of money also reduces our savings over time because of inflation, moreover no one is certain what will happen to the major currencies next year.

The levels of inflation of most currencies are higher than the banks’ interests on deposits. That means that even when the number on your bank account goes up, its purchasing power goes down. Because of inflation, accumulating wealth in a form of money is inefficient and wasteful.

Assets are the sources of wealth. Wealth is a balanced portfolio of several different assets. We have to focus on increasing your money-making capacity, not on the amount of money we have. Being focused on the bank interests usually distracts us from building up our money-making capacity.

The richest people in the world keep their savings in assets. (They don’t keep their wealth in a form of money.) When you make some money, immediately convert it into your asset. It’s better if this is an appreciating and money-generating asset. Make sure it’s not a liability masquerading as an asset.

Summary:
1. Continuously keep improving your qualifications, products and services
2. Manage your expenses well and don’t buy and over-consume on impulse
3. To accumulate wealth, invest in appreciating assets.


Vocabulary

wealth – богатство
wealthy – богатый
to allow – позволять
to avoid – избегать
to emphasize – обращать особое внимание
inner – внутренний
to achieve – достигать
to the degree –  в той степени
in terms – в терминах
to create goods – создавать товары
competitive – конкурентный
to provide a service – предоставлять услуги
to convert – превращать
security – безопасность
to invent – изобретать
to be available – быть в наличии
to take into account – принимать во внимание
ahead – впереди
competition – конкуренция
to imagine – представлять себе
knowledge-based economy – экономика, основанная на знаниях
to take an inventory – проводить инвентаризацию
strength – сильная сторона
to contribute – вносить вклад
to acquire – приобретать
Keep acquiring – Продолжайте приобретать
income – доход
plenty – a lot of
to flow – течь
to implement – реализовывать
over time – за какое-то время
to accumulate – накапливать
appreciating – растущий в цене
asset – актив
expenses – расходы
to manage expenses – планировать расходы
to master – овладевать
survival mechanism – механизм выживания
to invent – изобретать
to someone’s advantage – себе на пользу
value system – система ценностей
through – посредством
advertising – реклама
to acquire – приобретать
to rob – грабить
to keep in order – содержать в порядке
to maintain – делать профилактику
hassle – суета
to drain –
resource – ресурс
irrational – не рациональный
impulse – импульс, желание
to overcome – преодолевать
temptation – соблазн
to blow their money – тратить деньги
shiny – блестящий
useless – бесполезный
to stay on track –  держаться намеченного курса
to afford – позволить себе
to impress – впечатлить
neighbor – сосед
existence – существование
to interfere – вмешиваться
decision-making process – процесс принятия решения
impulse spending – импульсивные траты
purchasing – связанный с покупками
decision – решение
spontaneously – спонтанно
big time – существенно
immature – незрелый
behavior – поведение
especially – в особенности
to dehypnotize – раз-гипнотизировать
list – список
item – позиция
in advance – заблаговременно
to accumulate – накапливать
appreciating – повышающийся в цене
asset – актив
monitory – денежный
ordinary – обычный
to prevent – не позволять
medium of exchange – средство обмена
ultimate objective – конечная цель
tool – инструмент
goods – товары
service – услуги
to serve – служить
to issue money – печатать деньги
scheme – схема
gradually - постепенно
enslave – порабощать
to take place – иметь место
amount – сумма
to earn – зарабатывать
to diminish – снижаться
savings – сбережения
to reduce – понижать
to be certain – быть уверенным
major – основной
currency – валюта
deposit – вклад
to mean – значить
purchasing power – покупательная способность
wasteful – расточительный
source – источник
money-making capacity – способность зарабатывать
bank interest – процент по вкладу в банке
to distract – рассредоточивать
to convert – превращать
to make sure – убеждаться
liability – пассив
to masquerade – маскироваться
to over-consume – избыточное и чрезмерное потребление