I am completely convinced that anyone can achieve financial success. Why am I so confident? Because as a wealth planner for well over a decade, I have had the great privilege of working with many wealthy clients. I also learned HOW they amassed their fortunes. The good news: I’m going to share my wealthy client secrets with you. The even better news: The secret to their success is very simple. In fact, wealth creation can be summarized in just one line, something I call The Golden Rule of Wealth Building.
Now before I get into the magical Golden Rule, a little on how I came across it. One of the curious things I noticed from my group of wealthy clients was that they were more different than the same. That didn’t make sense to me at first. My logic was that since all of these individuals were wealthy, they would all be similar in many respects. The same upbringing (silver spoon of course), same education (typically private school, followed by an Ivy League MBA), same career advantages (a $300,000 starting salary because daddy owns the company) etc. I quickly discovered that my preconceived notion of wealthy people was completely wrong.
Most of my well-to-do clients were a hodgepodge of people from several different walks of life. Nobody looked like Donald Trump with his fancy thousand dollar suits (although a few clients did have the Trump comb-over). Most were guys who wore khakis, or women who wore jeans. Which got me to thinking: My clients are all very different, but they must be doing something the same. How else are they achieving the same success in building wealth?
The Golden Rule of Wealth Building Arrives
Then like a gift from the gods, the recipe arrived. A colleague of mine came back from a meeting extremely excited. Looking more for inspiration than gaining a client, he met with the most successful businessperson in our area. My colleague came back a changed man. After almost a three hour meeting, the successful businessman wrote down his secret recipe of wealth creation on one side of a single sheet of paper. (That sheet of paper has since been framed and now hangs in our office boardroom).
My colleague had the Golden Rule of Wealth Building in his hands. He knew immediately the power of what was on that single sheet of paper, but it took me a bit longer to figure it out myself. It’s not because I am slow (although my wife might say different), but because I’ve seen what was written on the paper before and didn’t pay much attention to it when I originally saw it.
The first time I saw the Golden Rule was in a mathematics class, which is appropriate because math is the language of wealth. Now before you get scared off with all this math talk, relax. All the math you need to know to understand the Golden Rule you probably learned in the third grade. So here goes, patient readers, the Golden Rule of Wealth Building:[heading style=”1″]FW = CW × (1 + R) T
Where FW=Future Wealth, CW=Current wealth, R=Return, T=Time[/heading]
So there it is. The magical Golden Rule of Wealth Building. Isn’t it beautiful?
If you don’t immediately see the beauty of the Golden Rule, I understand. At this point, most people fall into into one of two groups. The first is the “I hate math, and you said this was going to be easy to understand, you liar!” group. Believe me, the Golden Rule can be translated from MATH into plain ENGLISH. Please stick with me, you will thank me later, I guarantee it.
The second group is the “I understand math, and I think I’ve seen this formula before, it’s nothing special, you hack!” bunch. Trust me, I was in your exact shoes when I saw the Golden Rule again for the first time. It took me a while to connect my observations of wealthy clients and this formula, so you need to stick with me, too.
What Does it Mean to Wealth Building?
The bottom line is the Golden Rule is the basis of wealth creation. This formula can explain all financial successes and failures. If you are a beginner to investing and saving, the Golden Rule will put you on the right path. If you are an experienced investor, the Golden Rule will help you achieve continued success by focusing you on the most important parts of your plan.
This is just the beginning in our journey to unlock your wealth potential. In my next posts I will start to dissect and explain each part of the Golden Rule in plain English. I will show you how to apply it to make better financial decision, and I will show how ALL my wealthy clients have used the Golden Rule in their financial success.
Like I said, I am totally convinced anyone can achieve financial success, because it involves just one simple Golden Rule. You now have the rule. Next I show you how to unlock its power.