How Can You Create True Wealth

money_bagWhat is “True Wealth” and how do you create it?

These are both very good questions, especially on this blog. After all true wealth is what this blog is about.

What is True Wealth

When I talk about true wealth I mean wealth in its fullest sense. It is not just about money. Sure, it is in part about money. But it is not all about money. Money is merely a tool that you can use to create true wealth.

True Wealth is having enough money so you can achieve what you want to do and have some additional benefits. It is about attaining financial stability and then financial independence. Having these things will allow you to have other things that are just as much about wealth: peace of mind, financial security, free time to devote to other pursuits, and whole and balanced life.

True Wealth is not about spending every waking minute making money. It is not about being a slave to money. It is not about worrying about money. These things deplete your true wealth.

True Wealth is having enough wealth to be reasonably secure, to buy the things you need and some that you want, and to also have time to do things that do not involve making money. It is about healthy relationships, a healthy body, and all the other things that go into a balanced and rewarding life.

If you have a good job, enough savings to deal with emergencies and those things in life we cannot predict, and enough time to do what you want to do so that you have healthy relationships, a healthy body and peace of mind you have true wealth.

How Do You Create True Wealth

Creating true wealth is really about living life with some sense of balance. It requires these things:

  1. A good job: a good job is one that pays you enough to meet your needs with some left over to save and invest. It is a job you enjoy. It is a job that has potential for advancement. It is a job that is in some way meaningful. A good job includes owning your own business.

To have a good job you must have the education and skills required for a good job. It does not have to be a fancy high paying job by the way. In their book The Millionaire Next Door by Thomas Stanley and William Danko begins discussing a married couple who come to them for financial advice. The husband is a mail carrier and the wife is a teacher. They are millionaires.

To keep a good job you must continue learning and improving your skills so that you remain relevant and in demand. If you do lose your job your additional training and learning will make it easier to find the next job.

  1. Savings: you must have sufficient savings or reserves to cover not only those unexpected expenses when the water heater breaks or the car breaks down, but also enough savings to begin building a long term fund for your dreams and your retirement.

You must have an emergency reserve set aside to cover those unexpected expenses. This fund should also be available in case of a short term disability or loss of job. You should have enough saved in cash to cover your essential living expenses for six months.

Financing a car is a large waste of money. Saving money on a regular basis so you can buy a good used car for cash will save you all those finance charges.

Long term financial security, including retirement, requires regular savings to a fund that can be invested.

  1. Control: to have peace of mind and know how you are doing you must have control over your financial life. This means having a budget, keeping track of hour expenses and income, and planning for the future. It means using some self-discipline; it means spending less than you earn so you can create wealth.

You cannot manage your money unless you keep track of it. It does not matter if you do it on paper or using software. You must keep track of every dime you spend and of all your income from all sources.

It is impossible to build wealth or financial security unless you spend less than you earn. This is why it is important to have a budget and track your expenses to insure that you are saving money.

It is very difficult if not impossible to build wealth if you are in debt. You must learn how to avoid debt and to pay existing debt down.

  1. Time: this is the one thing we all have a very limited amount of. You cannot buy more of it. You have just 24 hours a day. Organizing your life in such a way that you can have time for the things that are important to you makes life much more enjoyable – it is very much real wealth.

To manage your time you must use some form of calendar. It can be a paper planner or software. I use my iPhone calendar. You should use what you are comfortable with.

In addition to all your appointments you should schedule time on your calendar to implement your goals. If you do not schedule it – it is not likely to get done.

You can learn powerful tips on how to manage your time with my free Effective Time Management lessons. Learn more here.

Creating true wealth is about living a balanced life and gaining control over your money and your time.
Learn how to manage your money, eliminate debt and build wealth in my book, Your Financial Success.

Learn how you can achieve more and realize your goals in my book, The Success Essentials.

Questions? Comments? I would love to hear from you. Feel free to post your comments or questions below or if you want to contact me privately you can do that here:

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.