Why are the rich getting richer and the poor getting poorer? Why does percent of the world population earn around 96 percent of all the money thatâ€™s being earned? Why do most people who have acquired surplus in their finances lose it as quickly as they had made it? Is surplus obtained and sustained by mere hard work? Does fate keep some people perpetually poor? Is surplus gotten and sustained by luck? The answers to these questions will be unravelled as we progress.
Growing from scarcity to surplus could be likened to cultivating a Chinese Bamboo Plant. The Chinese Bamboo plant begins its life from a tiny seed planted in the dirt. In order to make it sprout you water the seed but only to discover that a tiny shoot pokes out of the ground the first year. The second year, you water and fertilize and protect the seed…nothing happens. So…the third year you water and fertilize and protect the seed…nothing happens. So…the fourth year you water and fertilize and protect the seed…nothing happens. So…the fifth year you water and fertilize and protect the seed…finally, during the fifth year, the Chinese Bamboo plant begins to grow. In fact, it grows 90 feet tall in just six weeks. The question is, did it grow 90 feet in six weeks or in five years? The answer, of course, is that it grew 90 feet in five years.
It took five years to grow the root system that would one day support a 90-foot plant. So it applies. There is nothing like an overnight success; only an overnight ruin. You can never build a destiny overnight but you can wreck it overnight. Wealth amassed will be depleted; wealth accumulated over time will be sustained. Your finances will grow to the extent that you do. Genuine wealth does not so much lie in the amount of money you have accumulated but who you have become in the process. Until you are larger than your money you become a slave to it. Until you see wealth as a means to an end and not an end in itself your wealth will be short-lived. Until you are motivated by the right reasons to gain wealth, the wealth gained will be your ruin. Wealth cannot bring you happiness; it can only bring you pleasure which is short-lived. Wealth cannot bring you peace of mind only a noble and virtuous life can. Gaining wealth without purpose is living in the prison of existence.
To move from scarcity to surplus the seed of desire to gain wealth must be nourished and allowed to blossom. To get started you must get rid of the scarcity thoughts and cultivate the mindset that there is surplus for everyone. The first corollary Law of Abundance says that, People become wealthy because they decide to become wealthy. The second corollary of this law says, People are poor because they have not decided to become rich. Therefore, get rid of the excuses, the blame, the justification and the rationalization make a committed decision to become rich.
To gain surplus you must apply the Law of Saving: Financial freedom comes to the person who saves ten percent or more of his income throughout his lifetime. It is important to note that you save for investment or the day you will gain your financial freedom and never for rainy days. The Law of Conservation says, Itâ€™s not how much you make, but how much you keep, that determines your financial future. You are rich according to your net worth and not based on your income. You may say, what the heck are you saying, How can I save money when what I earn is not enough for necessary expenses?
Parkinsonâ€™s Law says, Expenses rise to meet income. The fact is that what we call our necessary expenses will always rise to equal our incomes unless we deliberately stop it. The first corollary of Parkinsonâ€™s Law says: Financial independence comes from violating Parkinsonâ€™s Law. The second corollary of Parkinsonâ€™s Law is: If you allow your expenses to increase at a slower rate than your income, and you save or invest the difference, you will become financially independent in your working lifetime. This is where self-discipline and wisdom comes in. We tend to confuse necessary expenses with desires. The fact is that our income can never gratify our desires. Have a budget of your expenditures and study it to see which of the expenses needs to be wisely reduced or eliminated. Make sure that every dime spent on your expenses or budget is spent on value. Keep working with your budget; keep adjusting it to help you achieve financial surplus.
To gain financial surplus you must invest your savings. The Law of Investing: Investigate before you invest. Study every aspect of the kind of investment you want to commit your money into. The first corollary of the Law of Investing is: The only thing easy about money is losing it. The second corollary of this law is: Donâ€™t lose money. If there is likelihood that you will lose money, donâ€™t part with it in the first place. The fourth corollary of the Law of Investing says: Only invest with experts who have a proven track record of success with their own money. Seek financial counsel from only those who have achieved genuine financial success. Invest in what you absolutely understand and believe in.
The key is: Manage what you have from where you are effectively to gain surplus.