The growing income disparity prevalent in both developed and emerging economies prompts academic circles to question: what factors cause someone to become wealthy, while another stays in poverty? This question has circulated for centuries, as academic, economic, and psychological debate circles ponder the theoretical underpinnings of wealth.
Traditional Blueprint for Wealth Creation
Certainly, there are obvious factors that contribute to wealth: availability of capital seed, economic environments, natural resources, technical skills, savvy business plans, and innate intelligence. However, none of those factors are predictive of wealth. Instead, there is a “X” factor that certain people possess, which allow them to build wealth.
We see countless people in the same circumstances – they possess the same level of knowledge, education, and capital accessibility – but even with the “level” playing ground, some people utterly fail, while others become exceptionally successful.
The “X” factor of success – universal laws
Why do some individuals succeed while others fail? Clearly there is something else, a “X” factor that goes beyond the traditional qualifications, resources, and environment factors. Esoterically speaking, there are several universal laws that can govern the creation of wealth:
- Law of Attraction: This law has been the subject of vast discussions, especially in the sheer popularity of the book The Secret. Essentially, it relates to having a belief in action and achievement. Wealthy people believe that they create their own lives. Those that achieve wealth do so because they believe in their abilities to generate financial freedom. However, the key is pairing these beliefs with actions that will create results.
- Law of Cause and Effect: This is an important universal law that certainly governs wealth creation. The popular golf example illustrates this law. If you swing your golf club with professional strokes, then you are likely to obtain somewhat professional results. In short, “like causes” produce “like results.” Wealthy people engage in the proper activities (such as investing intelligently, thinking in terms of large opportunities, managing money well) that achieve the proper results.
The Law of Cause and Effect undoubtedly appears to be the major reason differentiating successful persons from failures. Without the right cause, how could the proper result be achieved? Those who do not enact the right actions, but instead hope for results, are destined for a road without wealth.
There are significant characteristics that differentiate those who become wealthy and those who remain poor. It is not external factors, such as existing wealth or great education that generates wealth, but instead, the internal factors of drive, belief, and motivation that result in wealth creation.
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Grace,
I agree with you completely. For may years I struggled with money, always having BIG dreams, filled with ambition. I struggled to learn how to make money, how to invest properly, but it wasn’t until I started studying the Mindset of the Wealthy, that I started seeing results. What I’ve learned the most important thing is to learn how Wealthy individuals THINK and ACT and then model that. Obviously, managing and investing properly are a very important component of creating wealth, but the foundation is in the Mindset and habits, without which, no matter how hard you try you will not reach your full potential. Great read, thanks for sharing!
- Mital