4 Laws To Generate Wealth

Want to generate wealth? Play by the rules.

Have you ever come across the phrase – ‘play by the rules’? It’s perhaps the most powerful phrase in the world we live in. Why? Because the world itself is in existence because it plays by some certain rules.

All natural laws 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.

if you want to generate wealth,  for whatever reason you might need it for, these laws should be your best companion.

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

The Great Law To Generate Wealth – Law Of Saving

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 loss lead to more losses until something drastic stops the trend. If you want to generate wealth seriously, you must be careful with our saving plans, why we must not lose the momentum.

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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, you can infer that as you improve your earning capacity by taking in more useful information and motivation, you earn more. 

Always have in mind that your ability to generate wealth is proportional to your earning capacity.

Next is the factor of quality, how well do you do it! A more competent lawyer is likely to earn more. If it is difficult to replace you, or replace your company in the Labour Market, or replace what your nation produces among other comity of nations, then the 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 accomplish your task in a carefree way: when you treat your customers with indifference, when you do not do your job really well.

If it is very easy to replace you, if no one really misses you when you go on leave, your income tends to nosedive, you stay stuck at the bottom of the social-economic 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.

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The Parkinson’s Law or The Law of Lifestyle Inflation

This states that expenses always rise to meet income. If you earn $2,000 per month, your expenses tend to stay around this amount. Should you generate income improvement to $10,000, you begin to see new things of higher costs to buy, new accommodation, better carpets, new wardrobe, etc.

With the income of $50,000, your interest jumps higher still to a consideration of a car, rich neighborhood, birthday parties, 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 or excusable.

This phenomenon is known as lifestyle inflation. A situation when you are always willing to increase your spending (and thus, lifestyle) when your income increases.

To violate the Parkinson’s Law is to hold the key to financial prosperity. It is the secret to generating wealth substantially. This can be done by quietly delaying gratification. You cultivate the discipline of buying only what you need, and not what you want.

All you have to do is simply pay yourself first, 10% or more of your income and resist the temptation to give into commercial advertising. Tame your desires. Budget your 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.

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

You readily welcome any bits of advice or suggestion to start a saving programme. As the savings stay on courses and improve, you get happy and excited. No stone will be left unturned until you arrive at a saving of approximately 100,000. You then stay happy and comfortable.

And just as the saving momentum pushes you higher beyond this 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 begin to loom large in your consciousness.

Bang

Spurious opportunities begin to appear real and then spending begins with little items, growing larger until the entire savings begin to find various exit routes. You wake up one day feeling jittery again and you can only check your bank account to arrive at a diagnosis. Then you begin to see those books on savings again, the great seminars on savings, and so on, until the circle continues.

To generate wealth, don’t 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 rank of mediocrity.

Wise men, over the ages, have advocated many remedies to this seemingly insanity. Setting goals to surpass these limits and keeping the money where it is not accessible have come and gone among other possible antidotes. All will work. But the most potent of all these remedies is the observance of a regular donation to charity.

This is why fidelity to the first 10% is powerful. Giving is the magic cure to this noxious and limiting law of scope. If ever you find this sign or symptoms of the germs of this nasty law in you, try sharing and then sit back and watch the result.

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Wrap It Up!

Believe it or not, you need to play by the rule of wealth to become wealthy. The rich play by the rule of money, that’s is the reason they were able to generate wealth more than 80% of the populace and it’s been on for generations as old as human existence.

So, would you rather take advantage of these laws and set yourself on the path to financial abundance or judge their fairness and remain mediocre.

Today I have laid down before you the timeless secrets to generate wealth.

Over To You

So, what are the other advice, tips, strategies, techniques or methods that have worked for you? Please share with us in the comment below. Believe me; I sincerely value your opinion more than mine. And don’t forget there is love in sharing!

See You At The Top!!!

 

 

The MoneyPedals Editorial Team is a group of Business and Financial experts led by Simon Abolaji. Page maintained by Simon Abolaji you can connect with him on his social media handles below.

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