Becoming wealthy is the goal for most if not all businessmen. The exciting part of pursuing wealth is that you don’t need to make a lot every month to get there. By having a strict savings plan in place, and keeping expenditures low, it is possible to build wealth over time. Combine a shrewd savings plan with the wonder of compound interest and you have the opportunity to become very wealthy despite nearly any cash flow situation.
The concept of saving and investing is viewed by most these days as a burden to the standard of living they feel entitled too. We are in the age of instant gratification, it is just expected that with an increase in income comes an equal increase in the standard of living rather than using the increase to create more wealth. The issue with most is not a money problem, but rather a money management problem. (To quote my old college professor Dr. Martin)
It doesn’t take a genius to save an invest but it does take discipline. Even a very conservative investor with minimal appetite for risk can make a pretty solid return over the long-term. The focus on accumulating wealth naturally tends to lean toward making more money rather than leveraging current assets. Which is also the mistake so many businesses tend to make, which is focusing more on gaining new customers rather than nurturing current ones. Seeking to make more money and gain more customers is just one way to fatten the wallet and expand the business, the other is to use what you have to maximize returns.
Just $1,000 invested in the S&P 500 broad index in 1980 would give you with $28,310 by the end of last year! (December 2010). That is proof enough that it does not take a genius to make money, it just takes committing to a plan, AND THEN DOING IT! There are other investment avenues as well. I am not just pushing investing in equities, there are a plethora of other businesses and opportunities out there. But remember, the best time to start investing is yesterday! So start securing future profits for yourself and leverage what you already have to start accumulating wealth.