BUILDING WEALTH TAKES TIME

The frugal know how the world works and then lives within the limitations that have been predetermined. The frugal recognize that they live in a world of absolutes and they make these absolutes their partners in the furthering of their goals. They know that slow and steady is the way to build anything. Trying to rush means making mistakes that may prove to be fatal to one’s goals of achieving wealth.

It should be everyone’s goal to seek to improve their standard of living. Our net worth should be increasing, not decreasing. When you put your money in speculative ventures, if you lose all of your money, you have no one to blame but yourself. A fool and his money is soon parted by being reckless with his money. The wealthy are not gamblers. Gamblers are reckless. Gamblers act as if there are no consequences following their actions. Gamblers do not believe in cause and effect because they are solely effect oriented.

If work is productive, which it is, then the way of wealth is based upon earning an income from gainful employment. Work has the idea of effort behind it. Work requires everything that we have to make it work. All work has a physical component attached to it, as well as mental. Work requires the coordination between the spiritual and the physical. Work is primarily a spiritual enterprise. We do not work just to work, but there is a goal and a purpose to our work. We are bringing an objective product to the market to fulfill a need. This means that the spiritual must direct all work.

Usually, we are not able to meet all of our future needs by working just one week. It takes working week after week and year after year to be able to accumulate additional funds above our needs. To begin accumulating wealth has as its cornerstone that you must spend less than you earn. When you do this, you have a surplus. Businesses call this residual, profit. This means that costs must be kept to a minimum. The only way that costs can be reined in is by self discipline. Knowing what is a necessity and a luxury allows one to take care of essentials first and foremost. It is a matter of priorities.

As the surplus increases through systematic additions by saving a proportion of one’s income, there comes a point where this surplus must be put to a productive use beyond receiving interest income. This surplus must be made to grow. This means finding investment worthy vehicles. The best would be investing in objective items that will be used in the production process of making tangible goods. These are things that never go out of style and are thus necessities. There will always be a market for these goods. These type of goods do not become obsolete. All of this requires time and effort. Fortunately, we were made for both. This is the way to gain wealth. This appeals to the frugal, not the spendthrifts.