Do you believe that someone else could wave a magic wand over you and make your rich? Many people do. And for many people that magic entity that is going raise a rod and part a perfect sea, or wave it and hit them upside the head with a little magic is the government. Many of the people who voted for Barack Obama thought they would magically get free food, clothing, shelter, and health care as soon as Barack Obama was president. They stand in long lines looking about as lost and angry as those folks who were trapped by Katrina in New Orleans. The lesson which appears to never be learned even though the government patiently teaches it again and again is: If you replace God with Government one day you will find yourself waiting in long lines, just as the people Soviet Union did, and when you get to the front they will have run out of whatever it was you were waiting for.
The painful truth is this: wealth is created by individuals, companies and corporations. In fact, if government is your God and the provider of all things, you have actually given up on creating more wealth. You are in fact just looking to redistribute someone else’s wealth. Before you wait in that line for the government cheese any longer, do the math. Let’s say you are going to steal all the money of your local billionaire and divide up the wealth equally amongst all the people of the United States. Your first problem is that you can do this exactly once. The billionaire accumulated his money over a life time. He does not magically get billions out of the money tree. Next year you starve. Well let’s worry about that next year. Surely next year some other billionaire will be stupid enough to stand still and let you take all his money.
Okay so how much do you personally net from stealing say $10 billion from some billionaire. There about over 300,000,000 people in the US. You get just over $30. Don’t spend it all in one place! It might cover your food for one day if you eat at McDonalds, but if this is your great financial plan you are sleeping in the street tonight. By this way, there is a name for this economic system. It’s called Marxism. Remember that the next time someone tries to sell it to you.
We live in a capitalist system. Capitalism is not always fair but in general it gives a chance for most hard working people to make a living. It even works in communist China. The trick China learned is to keep their politics communist but to make their economics capitalist. It works so well they made enough extra money to loan the United States some. In fact, China is now the second richest country in the world. Unless we quickly re-learn what they have already learned from us, they will be first in no time.
There are people who believe they can teach you how to be wealthy. Not by waving a magic wand over your head but rather by putting you to work. As you may have surmised, they don’t promise to make you wealthy by putting you to work for someone else. Although most of what Marxists teach is clap trap and balderdash, there is the tiniest grain of truth in what they say. You do have to seize the means of production in order to gain wealth. But it is your own means of production you must seize, not some one else’s. In other words, we are not looking to steal any one else wealth here. We are looking to create our own.
Loral Langemeier in her book “The Millionaire Maker” tells you how to turn on the cash machine for yourself. Again, if you thought someone else was going to make money for you or that the money fairy was going to grant your wish, this is not the system for you. She gives conventional advice in a breezy, inspiring way. It is clear that if you follow some of her precepts you will have a better life. Actually raking in the millions might take a little more luck.
You have to have a budget. You need to know what money is coming in and where’s it going. You have to stop accumulating more debt and to pay off your existing debt. You have to figure out what you existing assets are and when and how you are willing to risk them. Almost everyone you know of who is rich took a risk at some time. Some of the millionaires in China actually loss their heads when they were caught cheating so your risk is considerably less than that. But nevertheless, the next rung of the financial letter is a risky one. If it weren’t everyone would be a millionaire. The truisms are still true. If you do what you have always done, you will get what you have always got. If you do what everyone else does, you will get what everyone else gets.
Most of the financial gurus that preach that you can grow wealthy eventually tell you that the way to do it is through purchasing real estate. Since the stock market is a crap shoot and almost always seems to lose these days, real estate is eventually where most honest middle class people are going to wind up if they want to track to attain the wealth track. Even when the real estate speculation bubble collapses, if you are willing to put up with some call the three Ts: taxes, toilets and tenants, real estate can still make money.
I don’t know that you are going to get rich tomorrow. Okay I do know, unless you win the lottery, you aren’t. But financial prosperity is like any voyage of enlightenment. Success comes in the walking of the path.