Precursors to Becoming a Self-Made Millionaire
The answers to wealth-creation will not be found in a 9-5 job, in the class room of a college or ivy-league university, or even in the confines of this editorial. Supposing though, that: we could ‘tap’ our college professors for bright ideas, or happen upon a benevolent employer: willing to reveal his “trade secrets”. Suppose too, that this article did offer some clues to riches; how well would an action plan that might have reaped success for one group, necessarily work for others? The answer is: not well at all.
Everyone varies in their stages of education, competence and business acumen. In Robert T. Kiyosaki’s book: Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom, (First Warner Books, 2000) he introduces readers to his 4 stages of financial freedom. “There are four stages in the quadrant.” Kiyosaki explains “These stages represent the: mind-set, career-level and state of readiness of the individual.
“The stages of the quadrant are: “employer”, “sales person”, “business owner”, “investor”; it is not likely that a person at the “employer” stage will jump straight to the “investor” stage (the stage of true financial freedom), without having first visited the “sales person” stage”.
Mr. Kiyosaki basically confirms why one person’s success strategy would be another person’s tragedy: not everyone is at the same rank of professionalism and confidence needed in order to create wealth. Congratulations to Mr. Kiyosaki on yet another masterpiece of his esteemed financial wisdom. Regrettably, however one goes through the entire book without pin-pointing Mr. Kiyosaki’s recommended suggestions for acquiring quick wealth; even his personal success story would have made the book that more interesting.
Some common traits I found in my research of self-made millionaires along with personal anecdotes are these:
1. They have arrived at a mind-set of intellectual and psychological readiness; they are ready to transform their skills, education and savings into riches. Arguably the Sage of Wealth-Creation, Robert Kiyosaki strongly suggests that one will not escape debt and taxes through employment: “It is not the boss’ responsibility to make an employee rich; it is up to the employee to smartly invest his pay, and make himself rich.” he says in the book. In another statement, “Ensure that the funds you use to pay bills and taxes are not your own,” he hints his endorsement of alternate income sources- residual incomes. Emma Simpson, a business correspondent for the BBC, recently blogged: “Earning some additional spending money used to be optional. However the present recession has now made it a necessity for thousands of Britons.”
2. Self-made millionaires have developed an understanding of how best to invest their funds. They study the market for themselves, opting not to depend on the opinions of the staff of money market houses who have perhaps never invested in any of the accounts they promote: mutual funds, stock and bonds, or high yield checking accounts.
3. They had a mentor- someone who already achieved what they wanted to achieve- who might have either coached them through the steps of: smart savings, small business start-ups, and entrepreneurship.
4. They might be encumbered for a time by full-time job roles, but the self-made millionaire is guaranteed to be investing his hard-earned salary in a financial instrument or business venture- to safeguard his post-retirement lifestyle.
Whereas it might seem obvious to some that everyone would some day want to be financially free, not all individuals are willing to take proactive steps towards this end. There are indeed a small cadre in the society who have fortunately found a pleasant working environment, made great friends with coworkers, and have found themselves in the care and protection of a very benevolent boss. I would say to those employees: “Stick with your day job! Happiness- by far- supersedes the search for riches.
