Money doesn’t go where it is needed most; it goes where it is appreciated and is managed wisely. To attract more wealth into your life, you need to demonstrate that you can first manage the wealth you already have.

The wealthy do not spend their money in the same way as the poor or middle-class. Most poor or middle-class people try to “keep up with the Joneses” and impress people around them. Sometimes it is out of insecurity, or the need for approval, but whatever the case the result is the same: they spend all they earn and they I get into debt. Their liabilities often grow, month after month, as a result of this mindset.

Millionaires, on the other hand, I pay themselves FIRST. The wealthy spend less than they earn, and they invest the difference. The wealthy see money primarily as seeds to be planted that will grow into ‘money trees’…

With every dollar I earn, I have a choice. It can become the seed of a money tree… if I put it towards buying an income-producing asset. Your assets and your sources of income tend to multiply, when you adopt this mindset.

I know a lot of smart people who generate a very good income but don’t have much to show for it. Building wealth requires a different skillset to simply “making money”. If you don’t have the discipline and rigour to spend less than you earn, and then invest those savings wisely, you may have a great lifestyle, but it doesn’t mean your wealth is growing.

Our educational system is based on the 19th century Prussian model, designed for creating good soldiers and good factory workers (“Sit down, shut up, and repeat what we tell you! To think is to disobey!”). We have not been educated about money, wealth creation, wealth management, achieving success, health, and happiness. We have not been educated about how to create passive income and achieve financial freedom. As a result, most people are not financially savvy, at all. Millions of people are spending their entire lives working in jobs they hate, just to get by.

I wasn’t educated about managing my money either. After blowing through a couple of million dollars earned in my first three years in business—it was fun, but not advisable—here’s what I started doing:

  • I started living within my means, while saving 50 to 75% of my net income every month. My advice? Find ways to save money, and live within your means. Start by saving $100 a month… then save $200 a month… and keep increasing how much you save every month, month after month. Maintain a monthly household budget and document your spending… it is an excellent way to start taking control over your finances.
  • I kept saving money. This allowed me to invest at the right time in low-risk yet highly profitable opportunities… because I had accumulated enough capital. I also found that having a decent amount in savings made me feel very abundant and relaxed about money, which attracts even more money into one’s life (why? Because the Universe gives you more of who you are…).
  • I kept adding to my income streams, by creating new products.
  • I set a new standard for myself and stuck to it: to always have a minimum of €250,000 in savings.

“What is the fastest and easiest way to make a lot of money?”

That is the #1 question I get from people all over the world, due to the success of my first book. This is typical from business opportunity seekers who understand little about business, or money.

I have seen innumerable people go for get-rich-quick schemes only to lose all their money and go right back where they started. If you think you’re just going to get rich overnight, or get rich quick with no effort, then you are dealing with high probabilities of losing your money.

Some people will go to extraordinary lengths to avoid having to think, create value, or take on the responsibility of managing and investing their money…

And some simply have a subconscious need to get rid of all their money as fast as possible, be it out of guilt or negative neuro-associations.

Pay yourself FIRST!

This is one of the most powerful wealth accumulation processes ever discovered… ALWAYS pay yourself FIRST. What this means, is that every month put money aside to buy income-producing assets, before you pay bills, food, rent, ANYTHING.

If you are then pressured to pay the bills, the rent, etc., you WILL find a way to come up with the extra money. The pressure will force you to succeed in doing so. It will require your brain to work harder, and force you to get smarter, bolder, more determined, and more resourceful.

Most people in Western countries spend 10% more than they earn, every month, and go deeper in debt. 70% of Americans don’t have any savings—not even $400. Why? Because people tend to raise their lifestyle instead of increasing their savings, when they have more income.

A great and simple idea for increasing one’s wealth is this: FORCED INCREASED SAVINGS ON A QUARTERLY BASIS. This means increasing how much you save per month, every quarter. You can set it up with your bank or with your broker.

COMMIT to sticking to your monthly budget, and commit to reaching a specific amount in your SAVINGS account.

Avoid Getting Into Debt

 Avoid debt if you can. Debt is a deficit of energy. It is a liability that costs you money, month after month. Make sure you live within your means and you spend less than you earn, every month.

People are getting more and more into debt, buying things they don’t need, egged on by what John Cummuta calls “The Coalition of Four”: Advertisers + Media + Credit Lenders + Merchants.

The media present us with a constant stream of glamorous lifestyles, then advertisers make us feel insecure about what we have, and finally Credit Lenders present us with the lure of “free money”… They’ve perfected this to the point where they can now sell us anything. They know exactly how to push our buttons. No wonder the difference between what most people earn and what they spend minimal if anything at all. Eventually they get you to spend your entire income. Then come the credit lenders with their promise of “0%-for-6-months” credit…

Driven by advertising and popular culture, you desire to buy a big house, a new car, fancy expensive clothes, every new convenience, toy, and fashion. You end up wasting money trying to look rich… the problem is, you never actually become rich!

The fact is—as described in the book “The Millionaire Next Door”— most millionaires in the US have a modest house, drive a modest car, and have simply spent less than they earn their entire lives and invested the difference.

Be more creative if you need to raise money: instead of turning to debt, sell something, or write a business plan and pitch it to potential investors.

Invest Wisely

My friend Simon Black, founder of, shared the following six rules for investing. He writes: “One of my value investing mentors explained to me, for instance, that if you’re going to invest in the stock market, you should buy a single share as if you’re buying the entire business. And he laid out six rules to follow when making any investment…

#1. Always consider the risks before even thinking about how much you can make

#2. Don’t invest unless you know WHY

#3. Invest in people of integrity who have a track record of success

#4. Buy assets that generate vast amounts of cash flow

#5. Avoid excessive debt

#6. Know the value of what you’re buying, and never overpay for it