In 2013, the first Wealth Summit of the Truly Rich Club was held. Bo Sanchez gave a very simple yet powerful message right the very start. He shared the two basic skills that wealthy people have.
Bo Sanchez is the Founder of the Truly Rich Club with the battlecry – “Helping good people get rich!” This has started a financial revolution among “good people” in the country today. Bo has written 29 bestselling books, spoken in 14 countries around the world, including 36 cities in North America. He has also founded (or helped build) 12 non-profit ministries.
This event in was creatively tagged Wanted: Superheroes of Abundance. With Bo as Captain Abundance, he declared that indeed, rich good people are like superheroes. And superheroes have two super powers – these are the two skills that wealthy people have:
First, they have the skill to produce wealth.
Second, they have the skill to reproduce wealth.
The problem with these two simple truths is that we – you and I – often forget and ignore them. It’s time to be reminded of these fundamentals.
Let me elaborate on these two skills.
First, producing wealth may be translated into generating income. To generate income, either you earn as an employee or as an entrepreneur. Either you offer a service or a product and people will pay you for it.
As an employee, there are skills required to be a competent performer at work so one gets to deliver results. In turn, he gets rewarded not just his or her basic pay but with a generous performance bonus. He also gets promoted and gets a pay raise.
As an entrepreneur, there are skills required to be able to create a product or service and offer it to the public. With the value that is given, value (usually in the form of money) is returned. In addition to the skill on product creation are marketing and selling skills plus accounting and other administrative skills which the entrepreneur may have to acquire on his or her own or hire somebody to do some specialty tasks.
That’s the first skill on producing wealth.
Second, reproducing wealth may be translated to growing the money or income one already has. This may be equated to investing. In other words, you reproduce wealth by making your money work for you. You may invest your money in paper assets like stocks and mutual funds or in real estate that also gets you passive income (in the form of rent income) or in another business that produces income.
In other words, it is generating another form of income by using the income you generated in the first phase.
Hence, to learn to reproduce wealth, once has to learn to invest. Among the three choices (paper assets, real estate and business), one can ‘easily’ invest in paper assets. [To learn more about investing in stocks, you may visit this page.]
So those are the samples and quick discussions for these two skill sets: producing and reproducing wealth.
It may appear too simplistic but then again, this is to impress upon us the fundamentals that are often forgotten. Thus, we need to be reminded of these and get started with the basics.
The question for you and me is this: What actions are we taking so that we work these skills out in our life for our benefit?
Ponder on this. You may share your thoughts in the comments below or write them in your journal.
Live your dreams with love,
PS 1: To know more about the Truly Rich Club, visit this page.
PS 2: Do you want to learn more about investing in the stock market? Check this out.