The principles of wealth-building are simple truths that you can follow to achieve financial independence. As you begin your journey towards financial independence, you may start to notice that many of the financial gurus say the same thing. They just say it differently. Some of the most common principles of wealth building are doing things like paying yourself first, reducing your expenses, and learning how to invest.
The book The Richest Man in Babylon by George S. Clason covers some of these basic principles. The wealth-building principles (or “commandments”) are as follows:
· Pay yourself first. Paying yourself is a crucial key to financial freedom. If you are not paying yourself first, you are going to have a hard time reaching financial freedom. Remember the old saying by Benjamin Franklin, “A penny saved is a penny earned.” If you earn $50,000 a year but you are only saving $1,200, how much are you really earning? I will give you a hint: the answer is not $50,000.
· Make of thy dwelling a profitable investment: This means set up a plan to pay off your house as soon as possible. One of the best ways to increase your wealth is to pay off that big mortgage. Imagine all the things you could do if you didn’t have a mortgage payment.
· Control thy expenditures: Controlling your expenses is a very simple, yet crucial, step towards building wealth. I have yet to meet a wealthy man who lives beyond his means, so track your expenses and look for ways to use your money more efficiently. You can do this by not eating out as much, reducing the cable bill, and using coupons, just to name a few.
· Guard thy treasures from loss: Before you invest in anything, make sure you are very familiar with the investment at hand. Never put your hard-earned money into something that you are unfamiliar with. This is a sure way to lose money.
· Increase thy ability to earn: One of the best ways to increase your wealth is to excel at what you do. If you are an employee, be the best employee that you can be. Look for ways to make your company more money or ways to reduce company expenses. Find the people out there that are excelling at what they do and learn from them.
· Insure a Future Income: Make sure that if something should happen to you, your family will be taken care of. This means having the right types and amounts of insurance. Also, a great way to insure a future income is through real estate investing.
· Make thy gold multiply: A sure way to wealth is to learn how to make your money grow. You can do this by using the miracle of compound interest.
I sure love learning and sharing “.. these basic wealth building principles is a crucial in our quest for financial independence! ..”
Principles of Wealth Building By Adam Mortimer–
Setting S.M.A.R.T. Goals by Adam Mortimer—
The Richest Man in Babylon by George S. Clason
Tag Archives: prosper
Trevor Gay, who spent 35 years working in healthcare management shared some great insights on his blog Simplicity. He wrote the following:
Feeling in a reflective mood, I thought I would list the most outstanding qualities of the most effective leaders I’ve ever worked with or for.
These were the 5 words that came into my head after not very long thinking about the question:
Strange how words like Hard, Decisive, Ruthless, and Disciplinarian did not come into my head. That probably says more about me than anything else.
I agree with Trevor. During my 17 years of management experience I have come to the same conclusions
I would add:
Example-Lead by what we do, not what we only say.
I have seen leadership as a stewardship and huge responsibility. I perhaps see my role to “encourage the heart. and empower and celebrate learning and the growth of others”
What are others thoughts?
Resources That Are Helpful:
Servant Leadership, Stewardship and Winnie the Pooh
Wayne Stewart, February 2005,PDF/Adobe Acrobat
The Top 100 Management and Leadership Blogs That All Managers Should Bookmark” By HR World Editors on June 10, 2008
Ethan Willis in the News! E-strengths assessment helps others – posted on Modern Kung fu July 24, 2008 found by Devin Willis
Totally Consumed HR – Jeff Treder– he also , correctly pointed out I , ” missing some of the heaviest-hitters,” including: All Things Workplace , Managing Leadership , Flowing Motion , Ripple Effect :Human Markets Ask a Manager and Totally Consumed HR .:
Dr. Wasson and Hefner, who are married, co-authored Keep Your Marriage: What to Do When Your Spouse Says “I don’t love you anymore!” and Wasson provides marriage coaching. The couple market their products on-line, and publish a web-based newsletter using the education and coaching support Prosper provided.
“Over the past several years, our newsletter has grown from nothing to having over 18,000 subscribers world-wide today. The great thing about our success is that we know we’re helping couples have better marriages,” said Hefner.
I have been reflecting on the last twenty years with my best friend and wife Julie , and I know and continue to learn that showing my love through my actions and remembering say the words “I love you; I need you; I think you’re beautiful; I appreciate you; thank you” and you help me so much; you are such a great mom; you’re one of the most intelligent people I know.” I look forward to an eternity with Julie and my hope is all of my readers happiness in their relationships!
Alabama Couple Reaches Wider Audience Thanks to Prosper-Provo, UT, June 26, 2008 —Jason Russell-Prosper Inc . Press Releases
“.. It sounds obvious but few people do it. Financial management is an ongoing, unending process. Start with the most fundamental elements; know your net worth and track where you money is going. These are both very simple tasks. Track every penny you spend. Use a day planner or spreadsheet or whatever is easiest for you. It is impossible to manage your finances if you don’t have the necessary information at hand. Your net worth is figured by simply totaling all of your assets (what you own) and subtracting all of your liabilities (what you owe). If your net worth is increasing month to month you are on the right track…”
Coach Gail Long Posted the following
“…Just as the Boy Scouts have “Be Prepared” as a motto, we need to have a Prepared Pantry. This is not just for major disasters such as hurricanes, tornadoes, floods or earthquakes; it can be as simple as an increase in gas prices, loss of a job, or even no overtime at your job. In these uncertain times it is necessary to build and maintain our pantries so we can always feed our families. It may not be their favorite meal, but no one wants their family members to go hungry. Each family is different and has unique food needs.
FEMA has lots of additional information on preparedness, for additional information from them go to
Are You Ready?
Are You Ready? An In-depth Guide to Citizen Preparedness (IS-22) is FEMA’s most comprehensive source on individual, family, and community preparedness. The guide has been revised, updated, and enhanced in August 2004 to provide the public with the most current and up-to-date disaster preparedness information available.
Step 1: Learn the basics of home storage. Doing so will save you time, money, and effort.
Step 2: Acquire an emergency supply of life-sustaining foods and water and store them properly.
Step 3: Build up your storage gradually. It’s amazing how fast storage shelves can fill up when you buy commodities in double quantities—for example, one can of beans for regular use, the other for storage
Step 4: Eat what you store and store what you eat. For more Tips
Prosper Learning Personal Finance – written by The Prosper Financial coaches-These coaches have established a strong reputation for success by helping thousands of students learn effectively manage their personal finances and investments. The department currently has over 100 years of personal financial experience.
Prosper has assembled one of the most experienced, qualified financial coaching organizations in the world, and has made financial independence affordable for virtually every family in America. Prosper’s program combines interactive learning and veteran coaching to guide clients through the process of creating their unique Financial Independence Plan. Our coaches are more than cheerleaders. They are educators, advocates, and mentors of the mind. The proven principles we coach include the following areas
- Goal Setting
- Cash Flow Management
- Risk Reduction
- Accelerated Debt Elimination
- Emergency Planning
- Small Business Philosophy
- Investment Planning
- Tax Reduction
- Retirement Planning
- Creating Wills and Trusts
- For more … http://blog.prosperlearning.com/financial/
Save Your Money in 5 Easy Steps
Five Tips to Saving Money
Prosper Learning coach Brice Hogan shared the following:
“…Marching your way to financial freedom takes a lot of discipline. So I want to impart some wisdom on how to keep a little more money in your wallet when you shop around for things.
My wife says that I am the king at grocery shopping, and I am. That is because when I go I try to look for the best deals possible I bring a list and stick to it. Generally I go during the busiest time of the week which is either the weekends or on Mondays. These days the store will have a lot of discounted. So shop on the busiest days. Better Deals. Also if the store has a frequent shopper club join it and you can get additional discounts. The grocery store I shop at, if I purchase a certain amount I can get 5 to 10 cents of gas. These days it’s totally worth it.
If you have a dollar store in you area use it. I find it a good place to find household cleaning products, bathroom cleaner, laundry detergents, some food items. Take advantage of these places they also stock some name brand products so it can be an effective way to save on your budget.
Find your Coffee Factor
David Bach has an excellent book called Automatic Millionaire. In it he describes what is called a latte factor. This is basically a vice or habit you spend a lot of money on. It could be cigarettes, eating out, excessive shopping, etc… If you have a vice or habit you spend a lot of money on cut it out completely or scale it way back to save you some coin.
Reviewing Insurance Policies
A great way to save some money is to review your auto insurance. Just by increasing the deductible to a manageable amount you can save $5 – $10 a month and maybe more. So call your insurance agent up and ask.
You can save a lot of money these days on tv/internet/phone bill by looking into bundles. Companies have made it cheaper for you to buy bundle packages. I have seen packages for $100 in some areas which can save you a lot of money in the long run for you.
These are just some tips that might be able to save you a little money during the month.
5 Practical Steps to help Save You Money-April 3rd, 2008 | Category: Personal Finance-Prosper Learning Personal Finance – written by The Prosper Financial coaches-These coaches have established a strong reputation for success by helping thousands of students learn effectively manage their personal finances and investments. The department currently has over 100 years of personal financial experience.
Get out of Debt Slowly?
Micah Richards share’s the following insight “..Our main focus is to get out of debt, and take the next step in building our own financial independent. These are some huge goals, and will not be something we can do in a week, or even a month. We may even need to wait a month to see any results.
A good idea is to write down ten short time goals you can accomplish in one week. We need to focus these ten goals on items, habits, or struggles we are currently having with our personal finances.
Here are a few sample goals that will hopefully give you some more ideas of what types of goals we are looking for:
1) I will bring a sack lunch to work all week.
2) I will walk to any location I need to go, that is within 1 mile.
3) I will bring breakfast each morning to work.
4) I will go to the grocery store once!
5) I will avoid vending machines, and coke machines.
6) I will eat before I go shopping.
7) I will go through my fridge, and eat all the leftovers.
8) I will read one book on how to achieve financial freedom.
9) I will watch one program on how to achieve financial freedom.
10) I will listen to a financial guru, either on the internet or on CD.
The above examples are once again to get your mind thinking of what personalized goals you can use.
I have also included a very simple document to use. It is so simple, you do not need excel or another program to run. You can cut and paste it, and even print it. After you have completed the goal for a week, you check it off. You will see a difference in your spending habits, and also see a psychological difference that you believe more in yourself, and that you can achieve the longer goals of getting out of debt. Good luck, and have fun! After a few weeks, if you feel confident, change your goals to a month.
Number CHECKLIST OF 10 Weekly Goals Check when Completed
I remember trying to figure out grants and hen it was explained to me by one of our mentors Dane here at Prosper Inc.. anyway I cacme across this post I thought would be helpful to anyone ! Most experts agree that a mentor helps us h avoid costly mistakes!
I really enjoyed author Grant Gary thoughts in his article. He wrote
“…Funding from grants is often at the core of a successful technology plan, but writing proposals requires a bit of magic and a lot of time. Grants can be a good way for educators to collaborate on building strong programs, but some creative thinking is also required. Here are eleven hints that can help you rake in the funds…”
#1 Find a brighter idea
#2 Get better organized
#3 Prepare an elevator spech
#4 Get a support group
#5 Set your watch
#6 Fill in the holes
#7 Judge for yourself
#8 If you got it, share it
#9 Known when to stop
#10 Make it a practice
#11 Party and give thanks”….For more tips click here
(Resource –The Better Ways to Win a Grant Gary A. Carnow from Tech&Learning)
I hope you find the tips helpful,
. There are many resources online and I wanted to to share this valuble information. It is from Adnan who, is still in high school and I believe we he be doing great things soon!
As longtime entrepreneurs Ethan Willis and Randy Garn have run Prosper Inc. with one simple objective: to celebrate its success of others!
Let me share some of Adnan’s list for you:
Communications / VoIP
The internet brings great opportunities to do business all with people from all around the world, and fortunately there are also a number of resources to help with the communication that is necessary. The resources here will allow you to communicate inexpensively with others:
1. Skype – Free calls over the internet to other people on Skype for as long as you like.
2. Vonage – Leading provider of VoIP internet broadband telephone services.
3. Gizmo – Low cost international calling and free calls to users on Yahoo Messenger, Google Talk, Windows Live users and SIP networks.
4. Vonics Digital – Plans start at $12.99 per month.
5. VoipBuster – Free program that uses the latest technology to bring free and high-quality voice communications to people all over the world.
6. SunISP – VoIP Plans
Many entrepreneurs will need some type of funding for their ventures. If this is the case for you, these resources may be helpful. Locating potential funding sources can be a bit easier be taking advantage of the resources that are available:
1. GoBigNetwork – Angel investor network/venture capital.
2. Fundability – Puts your company in front of qualified and interested investors.
3. Find That Money – Formidable presence in consumer finance.
4. Venture Deal – Venture capital database.
5. American Capital Advance – Fast Business Loans.
6. Financing: Where to Find It
For the full list click here
Gaebler VenturesResources for Entrepreneurs–assembled some great resources for entrepreneurs and are constantly updating our entrepreneurial resources so check back frequently.(http://www.gaebler.com/)
“Get More Done In A Day: Making the Most of Your Time”
“Everyone has it, but nobody has enough of it.”
Time is probably your most valuable asset. How valuable it really is depends on what you do with it. Everyone has same amount. Today’s most successful business people often spend no more time at their work than then average American. The difference is how effective they are with the time they are given.
Like so many other things in life, the solution to this problem depends entirely on your mindset. And while there is no foolproof formula for squeezing more out of your daily 24 hours, we offer up this selection of tips and techniques for working smarter and faster, without sacrificing important personal and family time.
Write it down-The first step in discovering where your time went is simply locating where you put it. You can do this with a time log.
Work smarter.It’s a cliché: “Work smarter, not harder.” But like most clichés, this one is often overlooked. So what does it mean to work smarter?
After writing it down , It means studying a task, looking for ways to accomplish it more efficiently. Maybe it’s as simple as using more efficient software. Perhaps it’s using a more effective filing system in your office.
Stop stressing about what you need to do. That doesn’t mean throw away your “to-do” list. It means rather than wasting time thinking about getting what you have to do, simply do it! The more you think about “what I need to do,” the more excuses you’ll find to put it off. Just pick a task and get to work. Before you know it, you’ll be ready for the next, and the next. Soon you’ll realize that you’ve accomplished a lot more than you would have by simply thinking about the things that needed doing. And you’ll be happier in the process!
Make your mornings count.
You’ve probably noticed that your morning sets the tone for the rest of your day. Some days you may roll out of bed with too little sleep or motivation to jump right into work. Unfortunately, that circumstance will carry over throughout the workday, leading to procrastination and lower productivity. Conversely, starting your day on the right foot can make a world of difference in what you accomplish.
Getting enough sleep is critical to starting your day off right. Be sure to plan to get to bed early enough to wake up refreshed in the morning.
Know Your Priorities.-Think about what’s important. Is it catching the latest episode of CSI? Or is it achieving success? Sometimes, when people are truly honest with themselves, they realize that their real priorities are activities that don’t contribute to what’s most important.
Let Go of Negativity-Nothing takes the wind from our sails like negative thinking. Unfortunately, many of us hold ourselves back from achieving our goals with thoughts like, “This is taking too long,” or “Maybe I’m not up to this.” What we tell ourselves has a great impact on how we perform. For more see Get More Done In A Day: Making the Most of Your Time–
How To Get More Done In Your Day-Entrepreneurship- Youngentrepreneur.com