There are more important things in life than a little money, and one of them is a lot of money ~ Anonymous. You must become rich in your thinking before you can become rich in reality ~ Napoleon Hill. Napoleon went on to say that the single most important step you must take on the road to wealth is a change in your thinking. He said that both poverty and riches are a result of a state of mind. If your mind is stricken with poverty then you will never gain and keep wealth in reality. Now that you have completed steps 1 thru 7 of ThirdWorldSuccessGuide (TWSG) you are now beginning to acquire wealth. Your financial mansion is very close to completion. However like anything else in life, this mansion will need maintenance or else the weeds of poverty will begin to take over and destroy the dwelling. In this step #8, we will outline several ways on how to preserve wealth so that you don’t find yourself back at square one like so many unsuspecting rich people who are now starting over, digging the foundations of what was once their financial mansion.
Step #8 – Preserve Wealth
What is Wealth? – As used in this article, wealth can be measured in the value of all your assets minus all your liabilities. It is the sum total of all that you control which can give you financial freedom to live and do what you love and set a foundation for your future generations.
What is Preserve? – To keep something safe from harm. Make something lasting, to keep alive, to keep going. To maintain the status quo of something. Therefore to preserve wealth is to keep your assets from harm and make them lasting that will survive several generations.
The following are seven ways to preserve wealth
- Buy High value and exclusive real estate – This type of real estate have some historical value or significance. It is like buying an art piece that will go up in value. It may be used as a way to attract visitors or sold at a higher price in the future.
- Take Company Public – Taking your company public means selling shares in your company to the general public and listing on the stock exchange. This is done by what is called an IPO (Initial Public Offering). The advantages are that going public gives your company a very good chance of surviving beyond when you are no longer able to manage the business. However a negative is that you can be voted out your own company – although cashing out may pay you handsomely.
- Diversify – Invest in multiple industries – Putting your proverbial eggs in more than one basket has been ancient wisdom which still applies today. Supposed you were invested in the oil industry and the world eventually stopped using oil and found a different form of energy. What would happen to your business? It would become obsolete! So even investing in another section of your industry may rescue you. For example, supposed you had also invested in solar and alternate energy, so although you would take a loss from the oil business you would not be completed wiped out since you also have investments in solar and alternative energy solutions.
- Maintain a Budget – Now that we are at step #8 in TWSG and have now attained some measure of financial success, this is not a license to go out and spend indiscriminately. We must continue to be guided by a budget lest we squander it all like the parable of the prodigal son in the Bible. Also be aware that you will have a lot of people pitching ideas to you and also a lot of scammers trying to take easy what you have worked hard for – look them in the eye with a long gaze and say ‘nooooooooo…..’ while shaking your head slightly from side to side. Also you will have to put measures in place to protect yourself from identity thieves.
- Stay the hell out of debt!! – That’s a dark place you don’t want to revisit (refer to step #5 of TWSG). Do not take on anymore bad debts. Good debts are investments that earn you a return on investment. Bad debts are liabilities that suck the s.u.c out of success, and leave you deep in a cess-like mess! Just don’t go back there.
- Insurance – Insure everything. Life, Property, Business, your pet goldfish – ok well maybe not your goldfish. But you get the idea. Insurance provides coverage in case cess-like mess hits the fan.
- Hire Professionals – As much as we would like to think we are the smartest tool in the shed. When we are playing at this level it would be wise to hire people who specialize in the various fields. We must realize at this point that we can’t do it on our own and we need to play at the highest level which means we need the right people in key areas to help steer the ship. Some examples of professional help includes, Tax accountants, Lawyers, Fund managers and executive assistants to name a few.
So to wrap it all up
Getting wealth is only half of the journey. Wealth preservation takes just as much planning and attention as it is to acquire it. There are many ways of preserving wealth that I would have listed here. However I have covered some of the major ones that if done correctly, will ensure wealth is not lost like a flame in the wind.
Type ‘preserve’ in the comments if you have read all the way to the end. It shows you are ready to do the hard work and learn what is necessary to become a Third World Success (TWS). Also please share with a friend or family member whom you wish to see succeed.
Stay tuned next week as I will publish step nine of the ten steps on how to make it in the third world.
Our actions now will determine future results.