Entrepreneurship
Entrepreneurship is not just about making money, it's about creating wealth. And to create genuine wealth, there are three key principles that must be adopted: creating assets, practicing deferred gratification, and living simply.
Creating Assets
One of the most important principles of creating wealth is creating assets. An asset is something that generates income for you, without requiring an exchange of time for money. For example, if you own a rental property, it generates income for you even when you're not actively working on it. The more assets you have, the more income you generate, and the faster your wealth will grow.
Practicing Deferred Gratification
Another key principle of creating wealth is practicing deferred gratification. Deferred gratification is about setting a clear dream for your life and putting in the work to achieve it. Instead of spending the profits of your labor on things you don't need, you invest them back into your business to create more assets. The more assets you have, the more income you generate, and the closer you get to achieving your dream.
Living Simply
Finally, to create genuine wealth, you must adopt the principle of living simply. Living simply means not spending the profits of your labor on things you don't need. Instead, you keep the profits to yourself and invest them back into your business. By doing so, you gain freedom from consumerism and the ability to control your own labor and the profits from it.
Wealth Stage One: Freedom from Consumerism
The first stage of wealth is freedom from consumerism. This is achieved by living simply and investing the profits of your labor in your business and assets. By doing this, you can avoid consumerism and instead focus on creating wealth and achieving your dream life.
Wealth Stage Two: Owning Your Own Time
The second stage of wealth is owning your own time. This is achieved by creating assets that generate income continuously. These assets work for you 24 hours a day, freeing up your time to create more assets and generate more residual income. This enables you to live the life you want to live and not be tied to an exchange of time for money.
Wealth Stage Three: Freedom to Live Your Dreams
The third stage of wealth is freedom to live your dreams. This is achieved by creating enough income from your assets that you can live the life you want to live. This is the ultimate goal of entrepreneurship and it requires a clear dream, a plan to achieve it, and the discipline to stick to the plan.
Conclusion
Creating wealth is not just about making money, it's about adopting a mindset of an entrepreneur. These three principles, creating assets, practicing deferred gratification, and living simply, provide a foundation for success. When you commit to these principles and follow them diligently, you will find success as an entrepreneur.