4 timeless laws of wealth generation

 

Today let us consider this four timeless strategies and laws of wealth generation that lot of people are ignorant about and has keep millions within the rank of mediocre.

“A law in science is an axiom, an assertion that is valid 100% of the time, that is indisputable, un-debatable, that is not arguable, that is infallible and that follow mathematical exactitude”

The above definition of scientific law gives good description of natural laws. From science to nature, financial growth to personal growth.

All natural law are just what they are, they are not there for us to judge their fairness or otherwise.

The best we can do is to take advantage of them and be a blessing to ourselves and our generation.

Today am going to share four timeless laws, which will change our financial life forever and generate wealth beyond your expectation.

I have compiled these four laws because of their evergreen nature and if they are considered with kin eye, you are on your way to wealth generation.

They worked perfectly for me and it had work for many people whom I had shared it with, which makes me believe it worth sharing on this blog.

1- The Great Law of Wealth Generation

“Unto he who continues to keep not less than 10% of his income shall more income visit, and from he who keeps no such store shall fresh income avoid, and even the little that struggles to get to him shall be quickly removed and given to he who keeps the store”.

Gentle words fall lightly, but they have great weight!

We already know that more leads to more and that less leads to more losses until something drastic stops the trend.

This is why we must be careful with our saving plan, why? We must not lose the momentum, I wrote a comprehensive guide on saving, so I won’t want to go into much of it in this article.

2- The Law of Income According to Earl Nightingale

This states that “all money that will come to you as an individual, group, state, company or nation, all income hinge on the demand for what you do, how well you do it and the difficulty of replacing you”.

            From this law I will like infer a couple of things

The first thing is that your skill level is directly proportional to your income level.

That is, you improve your earning capacity by taking in more useful information and motivation. You earn more increment in skills make you to earn more money and thereby generate wealth you desire.

That fact is that a little improvement on your skill can lead to great increase in earning and your effort to generate wealth.

Next!

A factor of quality. How well you do what you do?

Don’t believe in the 50/50 fallacy, that

  • All customers should be treated equally because they are equally valuable.
  • One university is just as good as another
  • One broadcaster is essentially the same in value as another.
  • One doctor is as competent as another.

These are known as the 50/50 fallacy but I tell you today, a more competent lawyer is likely to earn more.

If it is difficult to replace you, or replace your company in the labor, market, or replace what you produce among other comity of producers, then your income increases proportionately.

The opposite of this is also true.

You earn less when supply for what you do is more than demand, when no special skill is required, when everyone can get up and get going, or worse still, when you accomplished your task in a care free way: when you treat your customer with indifference, when you do not do your job really well.

I once asked my wife “is your pay normal or have you been over paid at your work place?” she replied “I’m under-paid!” truly she turn in her resignation letter after three month, I was actually worried when I heard about her move because I believe the payment was OK but I was wrong.

Her move forced the company to double her pay and a lot of other benefits in the bid to retain her.

What I am saying in essence is that if it is very easy to replace you, if no one really misses you when you are on leave, your income tends to nose dive, and you’ll stay stuck at the bottom of the socioeconomic ladder.  

I therefore suggest that you increase your earning capacity by learning more, putting in your very best and working diligently to become almost indispensable or irreplaceable in what you do, and by doing this you gradually generate wealth.

3- The Parkinson’s Law

This states that: “Expenses always rise to meet income”

I really like this one because only few people can escape it; I know that this blog reader will quickly take control of it.

The explanation to this law is that, if you earn $1000 per month, your expenses tend to stay around the amount.

Should you generate income improvement to $5000, you begin to see new things of higher costs to buy, new accommodation, better carpets, new wardrobe, etc.

With income of $10,000 your interest jumps higher still to a consideration of a car, birthday party and believe me $20,000 will move you to new neighborhood, a trip abroad, and so on.

You tend to spend all you earn and then borrow a bit more. It makes consideration of saving intolerable excusable.

To violate the Parkinson’s Law is to hold the key to generate wealth.

It is the secret to generate wealth. You do this by quietly delaying gratification. You cultivate the discipline of buying only what you need, and not what you want.

You need to learn how to live with less.

You simply pay yourself first, 10% or more of your income and resist the temptation to give into commercial advertising.

Tame your desires.

Budget you’re spending and never touch your wealth accumulation account to gratify wants. Defend the growth of your savings and take advantage of opportunities for better growth.

4- The law of scope according to Brian Tracy

This law states that every individual tends to have a limit to his savings within which he remains comfortable, out of which he get restless. This one is my personal favorite, let examine this one carefully.

If your scope of savings is $100,000 and you earn $5,000 a month and suppose you have no savings at the onset, you tend to feel jittery and worried about your financial predicament.

You really welcome any advice or suggestion to start a saving program. You get happy and excited at the savings stay on course and improve.

You live no stone un-turned until you arrive at a saving of approximately $100,000. You then stay happy and comfortably.

And just as the saving momentum pushes you higher beyond your scope, things begin to happen.

Opposing forces to your saving begin to arrive; the momentum begins to grind to a halt. The urge to seek saving ideas takes wings.

Ideas as to how to spend and what to buy begins to loom large in your consciousness.

Spurious opportunities begin to appear real and then spending begins with little items, growing larger until the entire savings begins to find various exit routes.

You wake up one day feeling jittery again and you can only check your bank account to arrive at diagnosis.

Then you begin to see those books on savings again, the great seminars on savings and so on, until the circle continues. Laugh!!!

You don’t want to be a slave to this kind of vicious cycle. You need to be conscious of its hidden operation and then liberate yourself deliberately. It has kept people in their millions within the ranks of mediocrity.

Wise men, over the ages, have advocated many remedies to this seeming insanity. Setting goals to surpass this limit and keeping the money where it is not accessible have come and gone among other possible antidotes.

All will work. But the most potential of all these remedies is the observance of a regular donation to charity. This is why fidelity to the first 10% of your income is powerful.

Giving is the magic cure to the noxious and limiting law of scope. If ever you find the sign or symptoms of the germs of this nasty law in you, try sharing and then sit back and watch the result.

Want to know more about giving read.

Conclusion!

The above laws are natural; the best that we can do is to use them to our own advantages, so they will not use themselves to our disadvantage. Like I always say When you conceive it, believe, learn it, practice it, then you will achieve it.

See you at the top.

Your Turn!

I will be glad to have your comment on any way these laws had affect your life or suggestion of other powerful laws that are also useful to have your money stay on the course. Believe me; I really value your opinions more than mine.

Please share your opinion in the comment box below.

 

 

 

The following two tabs change content below.
Simon Olubode is the CEO and founder of Theeverydayentrepreneurbook.com, with a long time passion for , self development and success.He started his website with the intention of educating and inspiring like-minded individuals all over the world to always strive for success no matter what their circumstances.Olubode's passion for what he does shows through the continual growth of Theeverydayentrepreneurbook.com online community.

Leave a Reply

Your email address will not be published. Required fields are marked *