5 Sure Steps To Wealth
- Live within your means
- Expand your means
- Keep breaking Parkinson law
- Utilize insurance
3. KEEP BREAKING PARKINSON’S LAW
If you have been following me on this blog, by this time you should have known about Parkinson’s Law after reading the book; “If you want to be rich “YOU MUST BREAK THE LAW”.
Parkinson law states that “men’s expenses tend to match up with their income”
This means that no matter what one earns it is just a matter of time before expenses match up with it. “When riches increase, there increases the mouths that eat out of it.” -King Solomon
By the time you have taken the first step to wealth and it has become your habitual life style, you will achieve one important financial IQ which is emotional maturity.
The second step will then be to expand your means. Being able to continue living within your means once you have successfully expanded your means requires emotional maturity.
This Parkinson’s law is the law that keeps the poor in poverty no matter how much money they earn. It affects people that work on a job more than others. However, many business men are also in debt for inability to curtail expenses despite huge company profits.
As you begin to expand your means, extra income will begin to flow in. Your hidden desires previously subdued due to the obvious low purchasing power now come alive to motivate you towards their satisfaction. If you have not attained emotional maturity, this coupled with external factors such as societal expectation and adverts that encourage consumerism –you may end up being subject to Parkinson’s Law.
To build or create wealth, once you have successfully expanded your means, make effort to keep your expenses far lower than your income.
You will definitely have capacity to solve more problems, to meet personal /community needs but ensure you are constantly breaking the Parkinson’s Law.
This you may be able to do in two ways:
- By keeping to a budget that justifies your actual (not perceived) financial status.
- Use the extra income to continue the process of expansion. The goal of which is to build a portfolio of investments /businesses that generate more passive income.
One key advice of Robert Kiyosaki in his book “Improving your financial IQ” is to keep your self to your basic needs, sort out your debts gradually and let the income from your investments purchase the luxury.
To read more on the importance of emotional intelligence in the process of wealth creation, read Robert’s book; Get the book here.