What is wealth itself?
Wealth has been defined as all assets of worth owned by an individual, community, company or nation .This definition focuses on one dimension of wealth. However, there are other different dimensions of wealth such as physical, social, relational, and spiritual
I will be focussing on material wealth. So when we are talking about wealth creation, we’re talking about material wealth creation.
Material wealth is usually measured in Net Worth. The simple definition of net worth is everything you own less everything you owe.
So how is wealth created? Wealth is created by increasing your positive net worth, and there are different means or avenues through which this can be done.
I will be focussing on different misconceptions around wealth creation
Why is it important to start by addressing some of these misconceptions? It is because those misconceptions have kept many people away from creating wealth. I was one of such people in the past. There are many misconceptions around wealth creation. In this session, I will be focusing on five.
One, people think they can be wealthy by working so hard on their job.. People do this in different ways. Some combine two or three jobs together. Some fight for a lot of overtime, and have little or no time for themselves. The mindset of such people is that the more they work the more money they make and the wealthier they become. This is a misconception about wealth creation.
Two, wealth is meant for some people who are born into wealthy families. Those who are born into wealthy families believe wealth is already created for them. They have a jackpot mentality that they will inherit the wealth . They will just have to continue to maintain and increase their wealth. Those who are not born into wealthy families think wealth is not meant for them. They think they do not have leverage in life. No uncle or parents to give them huge capital to start a business or any investments they may think of.
Three, some people think if they have a high-paying job it means they are wealthy . These sets of people continue to acquire different levels of education of degrees and certification . They aspire to climb the corporate ladder so they can earn the highest possible income.. This set of people have confused high income for Wealth. They think high income and wealth are the same. Nothing can.be farther than the truth.
Fourthly, some people believe that by just making a positive confession about wealth or by just having faith they will be wealthy. Some place a lot of emphasis on spiritual dimension that’s by having faith they will be wealthy
Fifthly Some people believe that they are either too young or too old to make wealth. Those who think they are too young seem to have destination disease. Destination disease is a weird mindset that makes people think that when they attain a certain age they will be able to do what they want to do and be fulfilled . For those who feel they are too old., they will literally give up thinking it is too late.
These are just a few of those misconceptions which people have about wealth creation. Now let me share with you the truth about these five misconceptions we have just looked at based on my research and my personal experience. I can debunk them because I have held to some of these misconceptions myself. Knowing what I know today I know there’s no iota of truth in those misconceptions so let’s take the first one.
Thinking that working hard alone on a job will make one wealthy is a serious misconception about wealth creation. It is said that he who works all day has no time to make money. The truth, however, is that to create wealth requires more than working on a job. It requires being able to leverage other people’s time and talents to create wealth for you.So the number of hours you have in a day for example is not sufficient for you to create wealth. Creating wealth will mean having other people working for you and on your behalf, so that all their productive hours, skills and talents combined will come to create wealth for you.
Secondly, for those who think that Wealth is meant for those who are born into wealthy families. It is true that being raised in a wealthy family can give you leverage. However, it is not automatic. The world is full of people who were born into a wealthy family but who could not understand how the wealth is created and couldn’t retain the wealth. The world is also full of people who do not have a wealthy background, but have made fortunes. For instance, Bill Gates did not come from a wealthy family but he is one of the wealthiest people in the world today
Steve Job did not come from a wealthy family. He was put up for adoption by his 24 year old mother who could not afford to raise him . He was one of the wealthiest people that lived.
Thirdly, for those who take a high-paying job and multiple certifications in order to create wealth, this may not necessarily create wealth. This set of people have confused high income for Wealth. Mike Tyson had high income as the world heavyweight boxing champion at some point. A few years later he filed for bankruptcy.
Fourthly, It is true that creating wealth requires having a positive attitude to life, including positive confession. As a person of faith, I know that having a strong faith is a huge asset in the journey of wealth creation. However, merely having positive confession of faith, without commensurate knowledge of how to create wealth and corresponding action, will amount to mere delusion
Lastly, Age has little to do with wealth creation. People still create wealth In their 70s. On the other hand, the world is full of millionaires in their 30s
After many years of struggling financially, in spite of my finance and business background, I came to understand that wealth creation has nothing to do with your academic or professional qualification. It has nothing to do with your Pedigree. As a person of faith, I believe that the God factor helps to direct you in the right path but you still have to seek the financial knowledge and put in the hard work.
I came to discover that Wealth creation is under guarded by some principles and irrespective of who you are if you understand this principles and follow them diligently, you will create wealth.
While I do not claim to be an expert or to have arrived on the subject of wealth creation, I certainly have learned valuable lessons that have set me on the journey with valid proofs. My goal is not to hug or keep these lessons to myself, but to share them to add value to you and help you on your journey the same way I have been helped by those who share them with me.
As I conclude,I have shared with us some of the misconceptions around wealth creation. I also debunked these misconceptions in this session.
