Have you ever wanted to build wealth? If you had the choice, what type of retirement would you picture for yourself? One on the white beach sands of the Bahamas, or within the stained living room of your 300 sq ft apartment on the bad side of town? If any one of us were given these two choices, I’m sure we would all volunteer for the white sandy beaches!
So, what does it take to create this type of retirement for yourself? Money of course! Before we can find ourselves strolling the beaches of the Bahamas, we must first understand what it takes to build wealth.
The Factors to Build Wealth
I was at my friend’s house the other day and we started talking about what our perfect job would be like. Instead of sitting at a desk all day and staring at the sun through the tiny office windows, we decided that we’d like to have more flexibility with our work. If there were a job that we could do at any time, and anywhere, that would be the job for us.
Well, with my experience making money online through this blog, I immediately proposed the idea of starting some sort of online business. After all, when you run an online business, you can really do it from anywhere, just as long as there’s an internet connection. You could suddenly decide to hop on a plane to Las Vegas, New York, or even Australia, and you wouldn’t have to worry about leaving your job behind. In fact, you could probably even earn yourself a decent wage while traveling on the plane!
While I was growing excited about the idea of earning a living while traveling the globe, my friend quickly shot the idea down. While he liked the concept, he really didn’t have any experience with web design, Search Engine Optimization, or online marketing. It just seemed like too large of a leap.
At that moment, I realized that in order to build wealth, one needed to fulfill 3 variables of the equation. My friend only had 2 or the 3 and was missing one component, which is why he could not build wealth in the category of ‘Online Business’.
Wealth = Knowledge + Resources + Drive
To build wealth, one must have the resources to start an endeavor of some sort. In other words, to start a business, you’re going to need some capital to develop an online presence. And, if you’re going to sell a product, you’re going to need additional money to get your inventory started.
In addition to actual dollars and cents though, you must also have the resource of relationships. In today’s world, networking is vital to the success of any business. Without the help of others (whether they be employees, suppliers, or friends that help you spread the word of your new company), you’ll most likely not last very long in the business world. Without the appropriate resources, wealth cannot be built.
Wealth is not easily created. You can’t just wake up one morning and say, “I’m going to gain masses of wealth today” and find yourself sleeping on a bed stuffed with money that same night. It might take years before you even feel like you’re on the correct road for building wealth. There must be constant course correction and continued efforts along the way. In order to accomplish wealth, one must have persistence and drive to continually push forward even when things may look bleak.
This is the factor that my friend was missing. I believe that he had the drive and he most certainly had the appropriate resources, but he had absolutely no knowledge of online business. Therefore, the idea of wealth creation with this avenue was not going to work.
However, the beauty of this factor is that it’s flexible. Even though you may not have the knowledge today, you could always learn more about it tomorrow! My friend didn’t know the first thing about the web, but he could easily learn! After developing his skills by taking a class or learning from a friend, he could suddenly have the 3 components of wealth in that category! At this point, wealth certainly can be created.
Do you have the necessary factors to build wealth? What’s your plan?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.