wealth creation ability

wealth creation

Why Giving Leads to Wealth Creation

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There are various reasons as to why giving leads to wealth creation. Some are intuitive and others supported through research.

Sense of Wealth Creation Increases through Act of Giving

Zoe Chance of Yale University and Michael Norton of Harvard Business School, in their research ‘I Give, Therefore I Have,’ observed the act of giving increases the giver’s ‘Sense of Wealth.’ The giver psychologically feels wealthier than they actually are through the act of giving. This change in mind-set leads to more wealth. Winston Churchill intuitively supported this theory “We make a living by what we get, but we make a life by what we give.”

Please check out what some of the donors say in their words:

Ted Turner, the founder of CNN:  “Being generous always made I feel great, and it seemed like every time I gave money away, I somehow made that much more.” 

Ackman hedge fund billionaire: “Over the years, the emotional and psychological returns I have earned from charitable giving have been enormous. The more I do for others, the happier I am. The happiness and optimism I have obtained from helping others are a big part of what keeps me sane.”

Mobile phone entrepreneur John Caudwell: “Philanthropy gives me far more pleasure and satisfaction than making money. In fact, making money is now largely driven by the knowledge that I will be able to leave even more wealth behind for charitable causes when I go.” 

Hedge fund billionaire Tom Stayer: “Surely the pleasure we derive from… consoling, understanding, loving, giving and pardoning far outweigh any selfish and passive pleasures of owning, having, or possessing.”

Michael Bloomberg, founder of Bloomberg: “Making a difference in people’s lives – and seeing it with your own eyes – is perhaps the most satisfying thing you’ll ever do. If you want to fully enjoy life, give.”

Hedge fund billionaire John Arnold: “There is no more worthwhile work and no greater mission [than philanthropy].”

Here’s a quote from the book “Start Late, Finish Rich” by David Bach:

“Over the years, I’ve spent a lot of time studying the rich and the superrich. The more I’ve learned, the more I’ve become convinced that most people who achieve great wealth have at least one thing in common – giving.

When I first heard the billionaire investor and philanthropist Sir John Templeton make this point, I wondered if it could really be true. Could the secret to being rich really be as simple as “give more and more will come back to you”? Does giving really attract wealth?

Some 10 years later, I can say that I am certain of it. Time and again, I’ve come across examples of superrich individuals who made a point of donating a portion of their earnings to charity – even before they became rich. Indeed, virtually every self-made billionaire I’ve ever studied echoes Templeton in declaring that tithing or giving was a principle of their life well before they had any money.

As a result, I’ve come to believe that giving of your time or money to help others is more that the “golden rule.” It is the golden magnet. I have seen this happen in my own life and in the lives of hundreds of people around me. It’s a simple, observable fact: Those who give lead more abundant lives.

This sums up my thoughts, beliefs, and experiences as well. In fact, I’ve commented that in the years that I’ve given the most, I’ve seen the largest increases in my net worth. It’s not a coincidence in my opinion.

This doesn’t mean that we give to get more. Really, our motivation should be to help others and that’s why we should give. Then, as we’re blessed even more financially, that allows us to give even more – and the cycle goes on and on this way.”

Increase in Happiness Index and Productivity 

The act of giving to under-privileged leads to inner fulfillment which in turn increases the happiness index of a person. Statistics have shown that a happy person is more productive. When a person is more productive it leads to higher levels of earning and wealth.

Wealth Creation

Studies show that act of giving lowers stress levels. People with low stress levels are more productive and successful. A relaxed person generally has better health, happiness index is higher and more successful. Giving creates strong communities. A charitable person will eventually profit from it even though he did not desire it.

Highest of human motivation according to Maslow’s hierarchy is self-actualization. This is taught in every business class. Just before Maslow died he put self-transcendence one step beyond self-actualization. According to him, the greatest fulfillment comes when a person seeks a benefit beyond what is personal. He called it self-transcendence – when one’s own needs are put aside for service to others, which provides the ultimate fulfillment and happiness. This level of motivation leads to highest productivity.

When we do any good to others, we do as much, or more, well to ourselves. —Benjamin Whichcote

The act of giving creates psychological changes within a person. Researchers have found that the act of giving stimulates parts of your brain associated with fulfillment of basic needs and primal instincts. Once the brain feels that our fundamental needs are met, it becomes more productive; our decision making skills, including financial decisions, improve.

Studies also show that giving stimulates empathy and compassion. You tend to become more confident as a person. These subtle changes in personality traits are observed by people around you. They will perceive you as a kind and gentle human being. They will invariably gravitate towards you. They recognize leadership qualities in services to othrs.

Servant leadership is the new mantra to success whether one plans it that way or not. When people see you giving, it inspires them – they cannot help but help you. You will be viewed as a natural leader amongst people and your voice will be heard. These are simple by-products of act of giving and will indirectly result in making you a happier and successful person. 

Giving Starts the Receiving Process

Wealth CreationThe act of giving starts the receiving process. Have you ever tried to receive money with your fists closed? This is simply not possible. If you are hurt after a broken relationship and shut down your heart for fear of pain then you are not in a position to receive love from even the most beautiful and loving person on the planet. You have to open your heart in spite of fear of pain to receive love again.

Similarly, if your mind is closed then you are not in the right frame to receive wonderful thoughts that may transform your life forever. The act of giving not only opens your hands, but also your mind and heart. Once you give, you are in a position to receive great wealth. You have to keep your heart, mind and palm open to receive great gifts of life.

“The more doors you open, the more you will allow the universe the opportunity to bring something to you and in ways you could never have imagined.”  -Anonymous

This is something I can share from my own experience of life: whenever I was stingy, it invariably lead to some financial catastrophe in my life. When I observed this fact repeatedly in my life, I forced myself to give even when I found myself in most difficult financial situations. I never wavered in my support of under-privileged children I was educating or refuse anyone who asked me for help in worst of financial times. Providence would always come to my rescue. This magic has never failed.

There is always an ebb and flow of money in our lives. Give when you have cash in hand. Give even more when you are low in money and see the magic happen. I can’t prove it scientifically, but it happens. Just try this simple recipe and it will do wonders to your financial health. In every action we take in our lives there is an element of luck involved. Ask any successful person; once you get into the habit of giving the element of luck for some strange reason will favor you.

Law of Cause and Effect

Whether it is physics that explains the law of cause of cause and effect, or spiritual laws of karma that say “We reap what we sow,” no one can escape it. David Cameron Gikandi rightfully says:

 “Give cheerfully and freely. It is the energy behind giving that matters so do not give grudgingly. The law of cause and effect guarantees that you shall receive plenty for what you give.”

Pitanjali, an ancient Indian philosopher, explained this fact a bit differently. He said that there is no linear motion in this universe—everything moves in a circle: planets rotate around the sun, the moon circles the Earth, the Earth rotates around its axis, water rises from the seas becomes cloud, the rain water forms rivers and flows back into the sea completing the full circle. A tree rises from the earth and when it perishes, it goes back to the earth. Man is formed from five elements of the earth and goes back to those elements after death.

Good or bad, deeds come back to us in some form whether we realize or not. Similarly, when you give money away it will always come back to you – this is the universal law of nature that no one can escape. Sometimes in our greed, we fail to see the implications of this law. Most enlightened wealth creators understand this basic fact and act according to this law. 

Giving Increases Size of Your Network

Although giving is not done with an aim of any monetary benefit, it generates goodwill in hearts and minds of people. It is like a certificate of good health and many people and businesses will like to partner or associate with you.

Bill Ackman, hedge fund billionaire has stated that:

“While my motivations for giving are not driven by a profit motive, I am quite sure that I have earned financial returns from giving money away. Not directly by any means, but as a result of the people I have met, the ideas I have been exposed to, and the experiences I have had as a result of giving money away. A number of my closest friends, partners and advisers I met through charitable giving. Their advice, judgment and partnership have been invaluable in my business and in my life. Life becomes richer, the more one gives away.”

There is also inherent fun and joy in giving that brings people together. Ask this question to donors, activists and volunteers and they will tell you about the sense of happiness and camaraderie that happens when people work together for a nobler cause than personal gain.

By giving your time, effort or money you increase your circle of influence. You meet diverse and interesting people. As your network grows, so will your wealth.

what is emotional intelligence

What is Emotional Intelligence and How Does it Affect Our Wealth Creation Ability?

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We are human beings and emotions play a big part in how we react to the events occurring in our lives. Unfortunately, we cannot control everything that is happening in the world but we can control our reactions to the events that affect us.

Money can be a very emotional thing. If you don’t believe me, just visit a stock exchange market and dispassionately observe people and their behavior. How fear and greed take over our rational thinking, how jealous and angry we can get when it comes to money!

Lack of an emotional intelligence causes internal friction in our minds, which saps our energy to do more productive work. There is an internal dialogue which takes place within our minds continuously. There is strife and irritation in our heads if our internal value system is in conflict with our conscious mind. It is only when both are in tune that there is peace within, and our energy levels explode.

What is Emotional Intelligence?

Our emotions emerge from the subconscious. Emotional intelligence accounts for our ability to change unconscious reactions to a conscious response. It means: to perceive and understand emotion, integrate emotion to facilitate thought, and to regulate emotions to promote personal and financial growth.

what is emotional intelligence

There is a verse in the Upanishads (sacred Indian text) that states, “If you know a lump of clay then you will know about all the clay in the universe.” This means that if you know and understand your own mind, then you will understand all the minds in the universe. All minds function in a similar manner. All our basic human and emotional needs are the same.

To improve our emotional intelligence, we have to bring more and more of our subconscious into conscious examination. Knowledge of the self is the most important step towards improving our emotional intelligence.

Wealth Creation is 90% psychology and only 10% strategy. We have to make internal changes and adjustments to our thinking process that is governed to a very large extent through our emotions, before we can go out and start making money. Changing our psychological foundations is the difficult part, once that is done, creating wealth is a cakewalk.

When it comes to money our emotions of ‘greed’ and ‘fear’ take over. Either we take irrational actions due to our greed of making quick money or freeze into taking action due fear of losing it all. To create wealth one has to keep emotions in check and take decisions with a detached mind. It takes time, effort and knowledge to develop that mind state.

 

what is emotional intelligence

Is there a Co-relation Between Giving Money to Charity and Becoming Richer?

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“The meaning of life is to find your gift. The purpose of life is to give it away.”

Pablo Picasso

Have you ever wondered why Bill Gates has pledged 95% and Warren Buffet 99% of their wealth away to charity?

Have you also wondered why Bill Gates continues to be the richest man in the world after having donated over $38 billion to his foundation? His wealth continues to grow at an ever increasing pace even as he donates.

Bill Gates and Warren Buffet are not alone; there are other billionaires who have pledged to give a major part of their wealth to charity. These include Microsoft cofounder Paul Allen, Manoj Bhargava the founder and CEO of 5-Hour Energy, Spanx founder Sara Blakely, Patrice Motsepe founder of the mining company African Rainbow Minerals, Virgin Group founder Richard Branson, The chairman of Indian consulting and IT company Wipro Azim Premji, Facebook founder and CEO Mark Zuckerberg. The list of these great individuals is simply too long to include here.

This brings us to the question “Is there a co-relation between giving money to charity and becoming richer?” Have these billionaires found some secret to wealth creation that we don’t know. Can we apply the same principles to increase our net worth?

We don’t learn this from wealth creators alone. Every religious book that I have read or spiritual leader I have met teach that in act of giving we truly receive. We can be cynical about religion or spiritual practices but we simply cannot deny the teaching or the evidence.

 

“The charitable give out the door and God puts it back through the window.”

                                                                                                —Traditional proverb

Every wealth creation book that I have read, seminars I have attended or knowledge gained from mentors emphasize the fact that giving leads to wealth creation. I certainly know this from my experience in life: whenever I gave, I received and whenever I was stingy, some misfortune happened in my financial life.

Let us examine some research findings on this subject.

Research

Logically speaking it does not make any sense as to why giving away your hard earned money should result in increase of wealth. However research on co-relation between giving and increase in wealth by Arthur C. Brooks of American social scientist and president of the American Enterprise Institute shows that there is connection between the two.

Arthur analyzed data from SCCBS (The Social Capital Community Benchmark Survey). The data included a survey of about 30,000 people of different education background, race, age, religion in over 40 communities in the U.S. They were also from various socio-economic backgrounds. The survey revealed the following:

  • The people who gave money to charity made more money than those who did not.
  • Giving increased by 7% when wealth increased by 10%. This means as a person got richer he could give more.
  • People who volunteered for social causes made more money than those who did not.
  • Charitable impulse of volunteering made these individuals donate more money than others.
  • Giving is about charitable impulse and not only about money. You can get the same results by donating time, sharing knowledge, giving food or for that matter blood.

In his final Analysis, Arthur found that regardless of income, a family who gave away $100 more than another family, in the same earning bracket, earned on an average $375 more than the other family as a result of generosity. He found that this was also true for the organizations and countries that gave away money to charity. In the past 50 years, the per capita of Americans has risen by 150% with an increase in donation of 190% within the same time frame.

This finding is supported by that of data from Statistical Abstract of United States. $100 in giving away resulted in an increase of GDP by more than $1800. America being one of the most charitable nations has benefited by being one of the richest.

Sir John Templeton, investor and one of the greatest pioneer of mutual funds of 20th Century stated “I have observed 100,000 families over my years of investment counselling. I always saw greater prosperity and happiness among those families who tithed than among those who didn’t.”

There seems to be some logic in these findings after all! Statistical evidence bears witness to the fact that giving leads to more wealth. But we still need to explore as to why this happens.

business owner

How to avoid Pitfalls of a Business Owner?

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A business owner has huge rewards but problems as well.

Cash Management

business owner cash managementA business owner, probably, will be making more money but it will not be enough. One of the byproducts of growth is the shortage of cash. To grow, you will need more and more cash. Cash management becomes crucial to your success. You will also need organizational changes, build systems and leadership within your organization.

Employees

As your business grows, you will hire more employees. There is a saying, “employees cause more headaches than machines.” You will be let down time and again if you do not hire properly qualified manpower and train them for their tasks, unfortunately, instead of relaxing, your problems will grow exponentially and you will find yourself working harder and longer hours.

Hiring a Manager

At times, the situation becomes so stressful that an owner wants to hire a manager as you have money to do so and run away from all the problematic issues. If this is done pre-maturely, it can cause a company to collapse. You will need to place systems, checks and balances in place before you can think of handing over your business to someone else and retire.

Handing Over Control of Business

On the other hand, there are owners who find it extremely difficult to hand over managerial control of a company they have worked so hard to build—it is their baby, after all! They think that no one can do a better job than them.

To succeed at this level, you must first find someone who is perhaps as smart as or better than you to run your business. Once you have found such a person, you have to develop the mindset to let go – it may sound simple but is very difficult as you have been the hands-on person all your life.

You should trust the person you have appointed to run your business and refrain from interfering daily in running of the business. You are now an owner/leader and no longer the hands-on person 
 it is time for you to now relax and work towards a strategic view of your business and growth.

Finding New Investments and Growth Opportunities

Your focus now should be on finding new investments and increasing the profitability of your business. Maintaining a healthy cash flow is the responsibility of your manager. Although you are not involved in running your business on day-to-day basis, you must keep a tab on your business from monthly/ quarterly or through annual reports. You should intervene only when things are not progressing as planned.

Once you reach this stage, you no longer have to perform any physical activity in running your business. Your income from the business becomes passive—this is where the fun begins. You will be devoid of any daily pressures of running a business. This will give you time freedom to read, meet people, grow your business network and prepare yourself to next step of financial growth and challenges.

At this stage, your focus should be on building capital to invest in other businesses. This is important if you wish to become rich and wealthy. After this stage, you simply become an investor. You buy assets that will give you even more passive cash flow.

wealth creation

Understanding Triggers of Wealth Creation

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There are principally two triggers that work the mind when it comes to wealth creation. There may be slight variations but fundamentally there are only two triggers.

It is important to understand these triggers because all wealth is generated due to these two triggers. You will need to understand and use these triggers skillfully in order to create wealth. The two triggers are the ‘pain’ and the ‘pleasure’ triggers.

Pain and Pleasure

Pain comes from deprivation of basic human needs like food, shelter and love. Even the very thought of pain and deprivation can become great motivators that can get us started towards the process of wealth creation.

Pleasure, on the other hand, is fulfillment of desire unsatisfied.

wealth creation

Even the thought of pleasure can get our minds excited with all kinds of possibilities and is an equally great motivator to get us started.

Pain pushes us whilst pleasure attracts us towards acquisition of riches. You have to understand what trigger drives you—it can be a bit of both. A little bit of meditation and awareness will help you identify triggers that work your mind. Meditation is nothing else but consciously observing your thoughts without judgement. Once you understand the inner thought process, you will be able to make sound choices in the present and not be driven by programming from the past.

In my case it was extreme poverty that drove me into the arms of spiritual quest to find the answers to my miserable state. For some reason, I bypassed the material stage only to realize at a much later date that my development was incomplete. This realization set me on the path towards attaining material success.

In some ways, I am happy that I understood the spiritual values before embarking on the wealth creation process even though it set me back by a couple of decades. Money has given me great satisfaction- to educate my two children in the best of colleges that money could buy. It enabled our family travels around the world and expanded our horizons.

Importance of Money

The greatest thing about money is the freedom it provides. It gives the freedom of time to explore relationships. Freedom of movement, to explore new places, and spiritual freedom to discover and develop unique genius. To become an enlightened wealth creator is to have freedom to do what you desire as long as it hurts no one and helps others.

Charity means to help others grow and make them stand on their feet so that they can hold their heads in dignity. Knowledge, education and health are the keys.

Education and the pursuit of knowledge has been the only difference between me and the poor village in India from where I emerged. I hope to acquire all the riches in the world and go back someday to set up an educational system that will empower others to do better than me.

My triggers of pain and pleasure may be different as compared to yours because your circumstances and experience of life are different. Your triggers and dreams are equally worthy. Take time to find them and focus on them.

Sowing the Seed of Wealth Creation 

Do not run after the fruit without sowing the seed of wealth creation first. In doubt- read a little, reflect a little, meditate a little and become aware of the power of the money in your life and the triggers that drive you.

The seed will engender the tree and the fruits, and not the other way around. You are destined to great riches. Being wealthy is your right—you may or may not realize this fact. The world is moving towards materialistic progression. Sooner you understand this fact about money, faster the manifestation of affluence and power will happen in your life.

Make a decision at this very moment that: “I will be rich and enlightened,” and you shall be rich and enlightened. Your journey to financial freedom will begin as soon as you sow the seed of prosperity and becoming rich in your mind. It is as simple as that.

Even if one understands the importance of money, it is fear of the unknown and the risky that holds us back. No one has ever succeeded in life or created wealth without taking risks. Whether it is the decision to get married, start a business, invest in a property or choose a career; there are anticipation of the unknown. A sports person or an artist has to decide if they have sufficient talent to pursue their dreams, or join the rest of mankind by taking a less risky option.

There is ‘fog of war’ in every decision in life. No one has a crystal ball to see the future. The worst thing in life is to freeze because of that fear of the unknown. When it comes to money and our financial future, this fear becomes irrational. Understanding the triggers of wealth creation like pain and pleasure, fear and greed are fundamental to your success.

how to transcend wealth

Why and How to Transcend Wealth?

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Most enlightened wealth creators understand that wealth flows, and nobody can block its flow. We are mere custodians of money for a short span of time. It invariably passes through our hands to others. No one has been able to take their wealth with them.

We pass it to our loved ones or give it to charity. Some fools try and guard it closely only to leave legacy of legal battles when they die.

how to transcend wealth

Wealth continues to flow whether we like it or not.

What we do with the wealth when we are custodians for a limited period of time is what matters. Wealth is a privilege and a great responsibility. It takes much lesser effort and knowledge to make money than spend it wisely. It needs great wisdom to use the power of wealth correctly.

When used with restraint and wisdom, wealth can help us to become greater than ourselves. Acts of giving and kindness help us to connect with large suffering humanity and in the process, raise our consciousness. 

“Giving frees us from the familiar territory of our own needs by opening our mind to the unexplained worlds occupied by the needs of others.”  –Barbara Bush

What benefactors like Warren Buffet and Bill Gates are trying to do is transcend wealth itself. They are not consumers of wealth; they lead very modest lifestyles in comparison to their wealth. They understand the transcendental nature of wealth and simply choose to give it away willingly. In the process, they become larger than themselves and will outlive their wealth. Their legacy will continue long after their wealth has vanished. They will live in the hearts of men, women and children whom they have helped.

“What we do for ourselves dies with us. What we do for others and the world remains and is immortal” —Albert Pine

Some will ask as to why we should make an effort to create wealth if the end purpose is to give it away. The answer to that question is: the process of wealth creation evolves you as a human being. It normally starts with a selfish motive but in the end, it transforms you into something bigger than your narrow self.

It transforms your family and other human beings who come in your contact. You understand its transitional nature once you possess it – its possession gives you freedom to explore and understand new things, and the chance to help others and in the process, help yourself.

Wealth is never an end in itself: it is a means towards the greater good. Some unfortunate people lose sight of the real purpose of wealth and get consumed by greed. Ultimately, such people get destroyed by their greed. Wealth built on foundation of greed never lasts.

It does not matter how much you give—it is the principle of giving that is important. The very act of sacrifice in order to help others who are in more need than you are is trans-formative. It sets into motion laws of karma that will open the universe of riches to you. Act of giving is a necessity and not a luxury if you want to be truly successful in life.

Enlightened people are those who create wealth the right way, preserve wealth the right way and ultimately, use their wealth for the greater good of humanity. This process leads to seeking of a higher purpose in life and its fulfillment.

 

become rich

How to Change Our Attitude Towards Money And Become Rich?

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The first step to become rich is to change our attitude towards money.

How do we change our attitude towards money? How do we go from ‘stay poor’ printed in your subconscious to becoming a go-getter who says, “Being rich is our birthright?” Yes, we are born to be rich and it is our birthright.

To make this quantum change in our attitude towards money, we must take few simple steps. The first thing to do is to become aware. And how does one become aware? It is simple
meditate!

Please, don’t freak out. Most people get confused. They think— to meditate is to get into some tremendous yogic posture and concentrate on the problem till you get the answer to the problem. Nothing can be further from truth.

Meditation means a reversal of the thought process. Our minds are overloaded with continuous inputs from our five senses, 24 hours a day. Even while sleeping, it works all the time chiming in dreams. It is burdened to the extent that it can’t think straight.

Silent Reflection

It is high time you go to a quiet place where there is no disturbance, sit down quietly and turn off your five senses. Now drift inwards towards your mental space and observe what is happening there. Initially, you will see only the top layers – consisting mainly of pressing issues and problems that are worrying our minds.

change your attitude towards money

It takes patience, practice and courage to unravel the inner workings of your mind. To uncover the layers of your mind, you should become non-judgmental and fearless. The mind will try to put brakes on the flow; there is much fear, hurt and guilt there. It is very hard to uncover memories that cause so much pain. It will need great courage to command the mind to let go of the brakes and allow the buried impressions flow out from the mind.

While reflecting, do not sit in judgement, because you were not responsible for most of the impressions recorded in your subconscious. These events occurred when you had no control over them. They happened during your childhood. Let your thoughts flow out with one part of your mind as a mute witness. It may not happen in the first sitting, but in due course even the most deeply buried impressions will begin to appear.

Therefore writers, musicians, painters and other creative people are given such a high pedestal to stand on. It is because each creative idea involves the reversal process of the mind. The creative people can invoke and have access to the deep recesses of their minds, and sometimes, even beyond the mind as we shall learn later.

How to Increase Awareness?

Our awareness level increases when we start observing our thought process. We begin to understand that most of our actions are because of our previous programming. As our level of consciousness increases, we are freed from our pasts and start living, and making decisions in the present.

Increase in awareness will lift the lid on buried emotions, hidden fears and deep-seated myths that you have about money. You will understand the subtle influence that money exerts in each of your relationships, even with your nearest and dearest ones.

Understanding Invisible Money Strings

Money is the currency of power: it is used to manipulate and control. The person with greater resources uses his or her assets to control the behavior of the other person—whether they are friends, parents, children or spouses. In most cases, this happens at a subconscious level with none of the players fully aware of what is happening. Deep resentment develops in relationships as a result of this game play. Money matters are shrouded in mystery and there are layers of emotions that cover our motives.

Some reflection will prove that money is central to all our relationships. It influences many of our choices ranging from whom we marry, our choice of job, where we live to what we wear, eat and experience.

In our society, money is the metaphor for success and achievement. Having it can make us feel worthwhile and not having it can make us feel worthless. We are what we are because of the money we have. Somerset Maugham, put it rightly when he wrote, “Money is like a sixth sense without which you cannot make complete use of the other five.”

Further reflection will show that men may feel threatened if they earn less than their wives. Men associate money with success, prestige, risk, power and excitement. If a man loses his job, his shoulders will drop as though he has been emasculated and lost his manhood.

A man normally measures his worth to his wife, children and society in purely economic terms. Unemployment can lead to depression, low self-esteem, anger and perceived loss of power. Women on the other hand, look at money as a form of security that gives them freedom and independence. Change in relative earning capacities results in a shift of power dynamics, spending patterns and bedroom politics.

Another area where couples display a wide range of differences is in their ability to tolerate debt. Intimacy is stifled by financial conflict. If there is power imbalance in your financial relationship, there will surely be a similar imbalance in your sexual relationship. In extreme cases, this results in marital tension and relationship breakdowns.

You will be surprised to learn that there are more divorces due to money problems than there are because of sexual ones. Money, not sex, is the last taboo and an intensely private matter. People will discuss their problems of sex openly but when it comes to money they will clamp up even with their spouse. This is because money is power and any discussion regarding money threatens to change the power dynamics in relationships.

In many cases, love becomes a financial transaction. Parents are conditioned to believe that buying things for children is a measure of their love for them. Women feel loved only when their husbands shower them with gifts. Cutting financial resources is a tactic frequently used to establish control in relationships.

Many people offer financial help to gain power and status over others. The recipient, on the other hand, tends to become subservient and in emotional debt. Many people don’t even spare themselves and go into a buying spree if they are lonely and depressed.

You must have heard of money strings—they are everywhere and mostly invisible!

Problem of Financial Security

become richNow reflect on your work scene; your financial security depends on your job. If you are fired it, will create havoc for your family. You are forced to succumb to every unreasonable demand of your boss. You cannot speak your mind freely or you may not get the next promotion.

I excelled in my naval career because the driving force there was my financial insecurity. My wellbeing, and that of my family, depended on my doing well in service. I could never speak my mind; deference was a sure way of getting written off. Only when I had built substantial residual income through my real estate investing could I freely express myself. I think I became a much better person and an officer once I gained a sense of financial security.

Money forces us to make compromises at every turn in our lives. Unfortunately, some people cross the barrier and break the law. They steal, don’t pay taxes, become corrupt and in extreme cases, even resort to violence and murder. Money corrupts like nothing else.

Reflect on another scenario: what happens if you fall sick or become incapacitated to work? How will you cope? For how long will your insurance pay up? What happens to you or your family that relies on your income? Still many people say that, “money does not matter to them.”

Influence of Money in Our Lives

Most of us fail to realize that money has a powerful influence on us starting from the moment we’re born till we die. We spend most of our waking hours trying to earn a living away from our loved ones. Our free time is spent in thinking about money: How to pay our bills? How to allocate the limited money we have? Whether to buy a new car or a house, go on a holiday, buy new clothes, send our children to better schools or look after our aging parents?

Conflicting requirements and lack of money causes anxiety in the deepest recess of our subconscious. Insecurity and financial pressures make us think and act in ways that are detrimental to those we love and the society at large.

The idea behind silent reflection is to increase awareness regarding money matters. It is to understand that money is the undercurrent of life that drives us. Our physical and spiritual well being depends on it. Decision to acquire wealth and riches is a noble act towards not only.

Power of Enlightened Wealth

Imagine the power of money in enlightened hands and the amount of good it can do: it can provide physical, mental and spiritual freedom. It can free the planet Earth from the ills of poverty that bind millions to a life of misery.

There is no nobler pursuit than the creation of wealth that is done in an enlightened way. It is the forerunner to spiritual development. In fact, spiritual progress is not possible without passing through the material phase and satiation of the basic human needs—which only money can provide.

Look at any religious organization, including the church; they thrive on patronage of the rich. Success in the material world is a prerequisite to entering the spiritual world. So, don’t be afraid- it is your destiny to be rich.

There is an energy flow in silent meditation and stillness. Wherever you direct this energy, results will show. It is your mind’s energy that decides your destiny. Its flow can be controlled through mindfulness and silent observation.

It is lack of understanding about importance of money in human relationships and invisible money strings that  holds us back from understanding the true significance of money in our lives. Money by nature is neutral. It is neither good or bad. It can elevate humanity when in the hands of enlightened human beings. By simple reflection we can change our attitude towards money and take first important step towards wealth creation.

leveraging knowledge

Why Leveraging Knowledge Is Greater than Financial Leverage to Growing Rich?

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Perhaps leveraging knowledge is the greatest lever that a person can apply. Your wealth creating ability depends on what lies between the two ears. One has to develop financial muscles in the brain. Intellectual leverage is the most powerful leverage. I have seen entrepreneurs amass massive wealth with nothing more than an idea.

“Thinking is hard work. When you are forced to think, you expand your mental capacity. When you expand your mental capacity, your wealth increases.” – Robert Kyosaki

The fastest method to achieve intellectual leverage is to use ‘Other People’s Experience’ or OPE. It takes too long to learn on your own—become an apprentice and find a mentor. Learn from the experiences of those who have traveled the path.

Secondly, knowledge has become so complex that no lone individual can acquire all the knowledge one needs to grow rich. Wealth is created through knowledge or ideas of other people. One has to learn the art of using ‘Other People’s Ideas’ or knowledge. This may require collaboration, or buying the right expertise to cover any grey areas that exist in our knowledge construction.

We live in an information age where ideas can be converted into wealth with relative ease. It is very similar to Eisenstein’s theory wherein mass can be converted into energy. If you look at all the new billionaires like Bill Gates, Steve Jobs, Mark Zukerberg,  Jack Ma, Larry Page, Sergy Brin, Jeff Bezoz, just to name a few, they used ideas and knowledge of others to grow rich. Most of them used financial leverage but they grew super-rich mainly due to the leverage of knowledge.

What is needed by a wealth creator is the judgment—as to what knowledge is needed for a particular project and from where it can be imbibed at the cheapest price. Our world is full of specialists who do not know how to apply their knowledge to create wealth. It is wealth creators who leverage the knowledge of the specialist to amass great wealth.

You have to develop a keen eye for talent and look out for skillful people, because these are the kind of people who will make you rich. You have to leverage, and harness the intellectual strength and talent of these people. Intellectuals consist of professionals such as accountants, legal advisors, tax consultants, etc. They fill the gaps in your knowledge. Their intellectual strength helps you grow rich.

Microsoft Corporations grew mainly due to its ability to harness the intellectual strength of young computer whiz-kids on its pay roll. Do you know that Bill Gates never created a software on his own. He either bought or hired someone to create the software that made him rich.  If Microsoft can do it, why can’t you?

secrets to becoming rich

What Are the Secrets to Becoming Rich?

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The fundamental secrets to becoming rich is to change your mindset. Internal change precedes the external outcome. Unfortunately very few people understand this basic truth.

Multiple Streams Of Passive Income

“If you want to change the fruits, you will first have to change the roots. If you want to change the visible, you must first change the invisible”   – T. Harv Eker

Every beautiful poem that was ever written, a great work of painting or sculpture that captivated you, a song or a book that captured your heart and mind, started as a simple thought in someone’s mind. Just look around you – the bed you sleep in, the computer you work on, the shoes you walk in, the car you drive and the house you live in, or the stylish clothes you wear – everything was brought into existence with an idea that made money for its author.

It is the impulses of thought that have created air planes, space ships, skyscrapers and every invention you see on this planet. There was no nuclear power until someone visualized it. There was no radio or television until the time someone tapped onto radio waves. There was no electric bulb before Edison invented it.

Why planting the right seed is crucial to your success?

Nietzsche rightly put it, “Everyone thinks that the principal thing to the tree is the fruit, but in point of fact, the principal thing to it is the seed.” It is always the seed that precedes the tree and the fruits. We run after the fruits but the actual thing is the seed.

According to the Upanishads (ancient Hindu text that was written thousands of years ago,) even the universe was created when God had an idea. He said, “I am one, let me be many.”  The universe was thus created. This is supported by the Big Bang theory that the scientists have propounded of late; even they do not understand what caused the Big Bang! Is the world around us a manifestation of God’s thought process? These are philosophical questions which all of us ponder when we search for answers. There is a lot of merit in this argument.

Thoughts are indeed the most powerful instrument of creation. Napoleon Hill, in his book Think and Grow Rich writes, “Truly, “thoughts are things” and powerful at that, when they are mixed with definite of purpose, persistence, and a burning desire for translation into riches, or other material objects. All earned riches have their beginning in an idea.”

If you want to have a bite of the ‘rich fruit,’ then you have first to change the roots that nourish the tree and the fruit; what is visible is just a manifestation of what is not visible. Your wealth is the extension of your thought process. If you have the mindset of a millionaire, you will become a millionaire. Once you expand your mental state to be that of a billionaire, then there is nothing on earth that will stop you from becoming a billionaire.

There is no doubt that starting point of all riches is in the seeding-the thought process- that, ‘I will be Rich.’ The important part is to know how to select the right seed, to plant it, give it a proper nurturance, and grow it into a healthy strong tree so that it can start bearing the right kind of fruits and in lots of quantity.

We are what we are because of the seeds of thought we have planted. If we want to be rich, we have to plant the right seed; the seed of mango will not produce an apple. For a harvest of riches, we have to plant the seed for being rich in our minds.

asset protection

Asset-Protection Types You Can Use to Protect your Wealth

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There are several types of asset protection vehicles that can help you protect your assets. These include; corporations; partnerships; and trusts.

Corporations

Corporations refer to business organization types that are formed as per state laws. The shareholders of every corporation control its legal ownership as seen with stock shares. All shareholders normally participate in the election of a board of directors tasked with running and managing the corporation.

The officers including the president, treasurer, and secretary are then elected by the board of directors who give them the authority to direct the daily business activities of the corporation. A single individual is permitted in many states, to occupy all the corporate offices while serving as the sole director.

There exist many different corporation types used for the protection assets: C or business corporations, S corporations and LLCs (limited liability companies.)

C or Business Corporations

The limited liability corporations provide to its shareholders, directors and officers (principals) an ideal tool for the protection of assets. Corporate principals are not personally exposed to risks of contract breaches, corporate debts, or injuries caused by the corporation, agents or employees to third parties.

asset protection vehiclesThe liability of corporations’ even when responsible limits creditors to the pursuit of strictly corporate assets to compensate claims: corporate principals’ assets are not subjected to seizure or claim for corporate debts. The clear difference between corporations and the other entities like trusts or partnerships is the personal liability protection it provides to its corporate principals.

Additionally, the availability of a corporation’s liability protection depends on whether the corporation is carried as a distinct and separate entity in clear isolation from its individual officers or shareholders.

Creditors often resort to trying to prove that corporations are not functioning as distinct and separate business entities especially when they seem to possess no significant assets. They can attempt to highlight the fact that the corporation is just the alter ego of its shareholders or officers – this strategy is known as piercing the corporate veil. It provides the creditor with extended reach to the assets of corporate principals when successfully proven.

S Corporations

S corporations and C corporations are similar with the exception of it being qualified for IRS special tax election that allows taxing at just the level of shareholders with business corporate profits. In addition to affording the liability protection applied in C corporations, there are other required qualifications for S corporations relating to shareholder numbers and types, profit and loss allocation between shareholders, and the stock types issued by the company to investors.

Limited Liability Corporations (LLC)

This new entity affords liability protection similar to that offered by C corporations to corporate principals in addition to the tax treatment (pass-through) of S corporations without LLC associated restrictions and formalities. It evolved from the introduction of additional formalities on S corporations.

General Partnership 

A general partnership describes an association between two or more persons in agreement to perform the activities of a business together. Partnership agreements can be oral or written. As a tool for the protection of assets, the usefulness general partnership is minimal since every partner is individually susceptible to liability for all partnership debts without excluding those incurred on behalf of the partnership by other partners.

Partners have the ability to account actions on behalf of the others with or without their consent.

This unlimited liability feature directly contrasts what is enjoyed by corporation owners (limited liability.) In addition to being liable for contracts negotiated by other partners, every partner is exposed to the risk offered by the negligence of the others.   Also, partners are individually liable for whole amounts of partnership obligations.

Limited Partnership

Authorized by state law, a limited partnership (LP) is comprised of at least a general partner and a limited partner or more. Though there must be at least two legal entities, a single person can represent both the general and limited partners like the same person or corporation can be both the general and the limited partner.

The responsibility of managing the affairs of the partnership is on the shoulders of the general partner whose personal liability for partnership obligations and debts is always unlimited.

Limited partners in limited partnerships are not susceptible to personal liability for the obligations and debts of the partnership which exclude their contributions. Limited partners exercise little or no control in the daily management of the partnership so as to afford this protection.

Assuming an active management role can lead to a limited partner losing his/her limited protection from liability and changing status to a general partner. The value of shares for limited partnership is highly diminished, thanks to this restricted control and contribution in the management of the partnership business.

Trusts

A trust is a document between the trust creator (known as the settler, grantor or trustor) and the person tasked with the responsibility of managing the assets inside a trust called the trustee. Trusts beneficiaries are people or institutions who will receive some or all benefits from the trust.

asset protection

The trust document spells out the rules regarding assets held in the trust. Trusts are designed to protect assets inside the trust and reduce estate tax liabilities.

Once an asset goes inside a trust, it takes a new identity. Trusts certify the transfer of certain assets from the grantor to the trustee, allowed to hold and manage the trust assets for someone else’s benefit (the beneficiary). It now has the immunity from estate taxes and resistance to probate.

When a trust is created in the lifetime of the grantor, it is known as a living trust, while a testamentary trust refers to trusts created at the grantor’s death or through a will or living trust.

There are basically two basic types of trusts: revocable and irrevocable. The grantor in a revocable trust reserves the right to amend the trust with alterations or revoke it through the dissolution of a part/the entire trust. In an irrevocable trust, the grantor reserves no such right. This lack of control makes the irrevocable trust an incredibly powerful tool for asset-protection. It is impossible to get sued for assets you don’t own or control anymore.

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