I’m becoming increasingly convinced that the key to wealth creation isn’t making lots of money… It’s initiative. Followed closely behind by hard work and thrift.
As for initiative, I can’t help but think of the great debate on whether a college education is worth it or not.
My oldest daughter just finished her sophomore year in college. I remember a zillion years ago when I went to college that as an incoming freshman, the transition from life at home, attending public school and the comforts of routine, to moving away to college on my own was quite scary and disruptive.
The hard work required to balance a full course load, get good grades, adjust to your roommate, make new friends, and build into a new routine was quite real. And yet, my daughter (and a myriad of other college students around this great nation) took the initiative to make it happen.
And soon enough, she’ll have a college degree that will provide credibility to her resume and land her a job in her chosen field (Spanish Education for those following along at home). That job will give her income, which is the bare minimum needed to have a fighting chance at wealth creation.
As for hard work, if she works diligently with excellence at her job, it will lead to greater and greater opportunities for her to advance her career. And by advancing in her career, she has the potential for more income, which gives her an even greater chance at wealth creation.
But hard work for the sake of hard work is futile without the key ingredient of initiative.
As for thrift (simply put: spending less than our income), if she sets aside a portion of her income for her future self and invests it well for decades (I know some great financial advisors), she will finally achieve wealth creation.
Setting aside a portion of today’s income, while difficult (I want that cookie now!), is the practice of deferring gratification – Meaning you can put money away today to be used at a future time with the expectation that when you go to lay claim to it, it will be worth more then than if we had spent it on current consumption today. The way to make it worth more in the future? Invest wisely.
Thus, all wealth creation begins with initiative, followed by hard work, then reinforced by thrift. It starts with an investment in yourself, whether college, or trade school, or online learning, or getting an accreditation, or bettering yourself in some way, shape or form…you must have initiative.
Wealth creation starts with initiative.
Then, you’ll work hard at your acquired skill.
Finally, you live with thrift, below your means and invest a portion of your income and let it compound for years.
Initiative, hard work, thrift.
These form the bedrock and secret to wealth creation.
