5 Wealth Creation Rules of Millionaires

When it comes to money wealthy people do certain things differently than most of the poor and middle-class people. They follow some strategies that most people don’t. Below are some of the strategies and rules that wealthy people follow to become wealthy.

5 Wealth Creation Rules and Strategies of Millionaires

1. Decide to be wealthy

The primary reason most people don’t become wealthy is they simply never decide to be wealthy. The starting point of all achievement is desire. As Napoleon Hill wrote in his classic book, Think and Grow Rich:

“Riches begin with a state of mind, with definiteness of purpose, with little or no hard work.”

Rich people are committed to being rich while poor people want to be rich. There is something remarkably powerful about commitment. Once we decide to have something, the mind unconsciously begins to create the reality necessary to bring to pass what we desire.

2. Pay yourself first

It’s not how much money you make, it’s how much money you keep that makes you rich. One of the most important wealth creation rules is this: Pay yourself first. Wealthy person pays himself first. In 1926, George S. Clason wrote a book called The Richest Man in Babylon, one of the greatest books on wealth creation which says: A part of all you earn is yours to keep. Save at least 10 per cent of your income no matter how little you earn. It can be as much more as you can afford. Don’t touch this money. Over time it would grow into a lot because of the power of compound interest. Research shows that most American millionaires save between 15 and 20 per cent of their incomes.

3. Control your expenditures

The third wealth creation rule is this: check your expenditure. Of course, all expenditures cannot build your assets. But continually asking questions like; “Is this expenditure contributing to my wealth?” helps to redirect the use of your money. It is no coincidence that the wealthy put the money in their homes instead of their cars. Homes usually appreciate while cars almost never do.

4. Invest your money

This is one of the most important rules of wealth creation. Invest your money. Make money work for you. Wealthy people have built their fortune by investing their money. The purpose of saving money is to invest it so that money can grow. Below is an extract from the classic best-seller, The Richest Man in Babylon about investing money.

“A man’s wealth is not in the coins he carries in his purse; it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging. That is what every man desireth. That is what thou, each one of thee desireth; an income that continueth to come whether thou work or travel.”

5. Increase your ability to earn

The fifth wealth creation rule is to cultivate your own powers, to study and become wiser, to become more skillful. Increase your skills. Get wisdom from books. The more wisdom we know, the more we can earn. Learn more to earn more. As George S. Clason wrote in his book The Richest Man in Babylon:

“That man who seeks to learn more of his craft shall be richly rewarded.”

Featured image credit: Pixabay

SEE ALSO: 5 Must Read Books on Wealth Creation