BUILD WEALTH STEP 2: The little that you do
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How to Build Wealth and Save Money
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How to Build Wealth
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How to Build Good Credit Quickly
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A trickle can become a flood indeed. One dollar is needed to complete $999,999 to $1,000,000. If you want to get rich more especially build wealth, you are going to have to start somewhere, and most of us will start from the small steps.
The Pareto principle states that whatever “20%” is, affects the “80%” of something. Though not to be taken to heart, this has been quite the reality. For example, “80%” of wealth belongs to "10%" or “20%” of the elite. The “80%” of company revenue goes to “20%” of the upper management and board of directors and “80%” of the manpower, the workers, receive only "20%" of the money. In other words, this perspective of the Pareto principle is a theory about uneven distribution. The world we live in very much runs in an uneven distribution. The most common uneven distributions of resources include money, power, food, AND KNOWELEDGE, and this is evident in the majority of the poor and middle class people and only a few rich.
But a trickle becomes a flood indeed. Another perspective of the Pareto rule that I took to heart when I build my personal wealth is about the “small things”. What ever “20%” small that you do will impact the “80%” of your life. Do not take the 20-80 literally. It is not 20+80=100. Rather, what it is about is whatever small that you do now will impact you bigtime later in life.
Example, a person habitually smokes 3 cigarettes worth $0.12 cents every single day. In the end, this habit will lead to either lung cancer, emphysema, death, or all three. The $0.12 cents made it far as being able to literally destroy that person. Just $0.12 cents! (Well, in our country).
Eating fried bacon everyday will lead to hypertension, hypercholesterolemia, arteriosclerosis, and maybe even a heart attack. One hamburger for $0.5 cents everyday will lead to colon cancer, colon resection, an ostomy tube, or all three, and that is just $0.5 cents a day.
A lowly employer who comes to work late 1-2 minutes occasionally receives a small compensation decrease in salary. When he added up the losses up to a year, he was surprised that he lost a total of 1 months’ worth of salary because of being late.
So what’s in it for you and me as a rat racer? To build personal wealth, again, that whatever small you can do will have a huge impact on how you live your tomorrow. Will you die rich, or die trying?
What little you save right now will impact the way you can live tomorrow!
You do not have to die trying (Scew that anyway!), You can create it!
That little thing you can do for yourself is: Paying your self first!
I hope you all learned from this!
(Next: Pay yourself First)
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Classic Economics Films DVD: 1940s - 1950s United States (US) Economy, Economies, Macroeconomics, Microeconomics And Money & Wealth Management
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Suze Orman - The Road to Wealth
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Practical Money Management & Wealth Creation For Youth and Young Adults
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Financial Freedom: Creating True Wealth Now [9-VHS Video Set]
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TnFlash says:
2 weeks ago
Great Hub! A trick I've learned to save is, don't spend you spare change. Every night I throw my spare change into a jar and once a month I roll it and deposit to my saving account. You'd be surprised at how quickly it can add up.