The 2 Fundamental Laws of Building Wealth

Wealth is such a coveted thing in life, it’s easy to understand why so many people get lost trying to wrap their minds around acquiring it.

The truth is, however, that becoming rich, at a fundamental level, boils down to two simple rules. Follow both – and keep following them – and you’ll see wealth build. Neglect to do so, and wealth will continue to be a race after dreams.

Drastically Reduce Living Costs

While this isn’t the most glamorous part of building wealth, it happens to be half of what’s necessary for acquiring it. If you can strive to increase the gap between your savings and your earnings (in a favorable direction, of course), you’ll discover quite quickly how large your personal wealth can build up.

It’s important to look at every angle for ways you can save money. For instance, if someone is looking for term life insurance, they can save considerable sums throughout their life based solely on their choice of plan.

When successful entrepreneurs say something to the effect of, “A penny saved is a penny earned”, they’re doing so for good reason. A large part of personal wealth does, in fact, translate directly to the amount of money a person can put aside.

Speaking specifically, there are many big, necessary purchases that you should be looking to save on. A car, for instance, is an important item that presents buyers with the opportunity to be financially mindful – or, not so much.

“The biggest mistake a car buyer can make, especially in the age of the Internet, is to buy a car without doing research first,” offers Forbes contributor Jason Fogelson. “Some buyers are so eager to get through the car-buying process that they don’t take the time to find out everything they can about vehicle reliability, pricing and financing.”

Shelter is, of course, an even bigger consideration than a vehicle, and one that also offers homeowners the opportunity to put a good chunk of money aside if they choose mindfully.

Finally, if you plan on becoming a world-class entrepreneur someday, it’s best to abandon the habit of buying items that add little or nothing to your productive life. Before you make any purchases, stop and ask yourself whether it’s really something you need, or if you’re just buying it because you can.

Drastically Increase Earnings

While it’s true that a penny saved is a penny earned, you also need to make money before you can make more of it. How you go about doing this is, of course, part of your unique adventure.

Whatever your niche, market your products or services efficiently. If the chance for entrepreneurship presents itself, keep in mind that countless millionaires before you have thrown caution to the wind to latch onto a good opportunity. Regardless of the business you’re in, a titanium work ethic is certainly your best tool for building wealth.

As a bonus consideration, and if there appears to be little inspiration to find in sight, it might help to throw yourself into different social surroundings. Millionaire author Steve Siebold writes: “Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income. The reality is, millionaires think differently from the middle class about money, and there’s much to be gained by being in their presence.”

Final thoughts

The points made here are simplistic, and for good reason. It’s common for budding entrepreneurs to seek difficult, complicated secrets to building wealth, though it isn’t clear why. Anyone who implies the two simple tenets noted here, and does so on an unwaveringly consistent basis, will see their personal worth go up in steady, reliably increments. Save on expenses, boost earnings, and do both for the rest of your life – you’ll see the 0’s in your bank account pile up.