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The Wealth Formula succinctly depicts the components that are necessary for you to create real wealth. The Wealth Formula is shown below:

M+K+P+A=W

It identifies four essential wealth creation stages and the relationship between them. These are:

Wealth Mindset
Wealth Knowledge
Wealth Planning
Wealth Action

It links each of these four component through the plus sign, +, which signifies that each of the four components are necessary for you to create wealth. In other words, missing one or more of the four wealth components will dramatically impact your ability to generate wealth.

For example, you could mentally prepare yourself, learn everything you need to make enormous wealth and create the most detailed plan to achieve your desired level of wealth, but if you don’t action it then all that preparation is worthless.

Similarly, if you mentally prepare yourself, learn everything you need to make enormous wealth and run off actioning your newfound mindset and knowledge but fail to make a plan it is like setting off in your car to go somewhere you’ve never been without taking a map. What’s your wealth destination? How will you know if you’ve achieved what you wanted to achieve? How do you know your using the right investment vehicle? How do you know if you’re on track or not to reach your target? Are you surpassing or underachieving against realistic milestones? All of these questions would be easily answered with proper planning.

So let’s look at each of the four wealth creation categories in turn.

Wealth mindset:

Wealth Mindset is the first of the four wealth creation categories and examines the importance of the correct mindset to creating wealth and financial freedom. Wealth mindset covers the interaction between you and your environment and the process of adjusting your thought process to think like the wealthy.

For example, the poor and middle class generally think that money is scarce and hard to come by. Saying such as “Money doesn’t grow on trees” and “I can’t afford that” spring to mind. The wealthy see a world of opportunity and abundance. They see money as little more than a concept and simply the by-product of providing value to others. They also know that offering value to others is only limited by their imagination and thus money must too only be limited by their imagination. The wealthiest people of the planet simply understand this and have incredible imaginations that create amazing value to others.

For example, Jeff Bezos realised that bookstores were severely limited in the amount of books they could offer their customers due to geographic and physical constraints. In other words bookstores could only service customers that lived near them and could only offer a limited amount of books, which fit in their store. He saw an amazing opportunity to solve these two problems by giving access to anyone anywhere via the Internet and offering a catalogue that is 40 times the size of a large bookstore. Jeff founded the multi-billion dollar company Amazon!

Wealth Knowledge:

Wealth knowledge is the second of the four wealth creation categories and examines the financial knowledge that is essential to create wealth and financial freedom. It is essential for wealth creation that you are knowledgeable about your own personal finances, the economy, the psychology of markets, compound interest and the asset classes and investment products available to you. Further, you need to understand how to interpret financial statements, investment strategies and risk management all from the wealth creation perspective.

Wealth Planning:

Wealth planning is the third of the four wealth creation categories and examines the essential component of planning to create wealth and financial freedom. Wealth planning is absolutely essential, yet on 3% of the population has clearly written goals and plans. A Harvard Business School study found that this 3% earned 10 times the average of the other 97% and they accumulated 98% of the wealth.

Wealth Action:

Wealth Action is the forth and final wealth creation category and examines the element of action in your wealth journey to create wealth and financial freedom. The importance of action to achieving wealth is obvious. Nothing can be achieved without action.

By using the wealth formula you can easily learn where your wealth creation strengths and weaknesses are and where you need to concentrate your efforts at improving.

Emlyn Scott is the founder of Rich1Percent, investor and wealth creation author. He is a wealth creation and finance expert with 4 post graduate qualifications and has amassed a multi-million dollar investment portfolio.

Can you really build wealth automatically?
The answer is yes…you just need to acquire a new wealth building habit.
You are going to love this habit because you do not even have to remember it….a banking computer remembers the habit for you! How is that possible? Read on and you will soon see.
Here is how the automatic wealth building habit works. It is based on the miracle of compounding interest and the amazing banking technology that is available to virtually all of us today.
Step 1
If you do not have a bank account with “Bill Pay” go to a bank that has it and open a new account. Ask them how many checks can be sent per month, can it be managed via the internet, what are the costs. Many banks now offer this service for free as a promotion to get more customers.
Step 2
Decide who it is that you want to help build wealth. Yourself, your child, a grandchild, or even a friend. This habit also works for building spiritual wealth…more on that later.
Step 3
After you open the account you now have the ability to select any amount of money that you want sent to any person or organization and at almost any time interval. Some banks even offer an unlimited amount of bills that can be sent. The banks will then mail checks at regular intervals to the people or organizations you have designated…you do not have to do anything.
The real power of this habit is that you are not going to be sending bills in most cases…you will be sending wealth building payments….automatically!
OK, before we get to step 4 let’s look at the amazing power of compounding interest to see how much wealth can be built over time with this habit.
Here is an example of how much wealth you could build by having your billpay send just $50 per month into an account (mutual fund, IRA, etc) that has a 5% yield.
1 Year = $615
5 Years = $3,400
10 Years = $7,764
25 years = $29,775
You can learn more about compounding interest by doing a Google search on the internet. Obviously the amount of wealth you can build varies with the amounts and frequency of bill payments sent to your wealth building accounts and your rate of interest.
This is where research can help you, it is beyond the scope of this article to show you all the amazing possibilities that exist.
The beauty of the bill pay system is that it is very easy to adjust your recurring amounts up or down based on your current financial situation. As an example, you could set up your bill pay to send $12.50 each week into an account (Equals $50 per month) or change it to $15 per week for a few weeks and then back down to $12.50 at a later time. You decide exactly who gets the money, how much, and how often….you have complete control at all times. It is amazing wealth building power.
Step 4
Now it is time to set up your automatic wealth building habit using your banks billpay system. Get the address of the person or organization you want the money sent to including the account number. Go online and set up a new account with this information. Set frequency and amounts. Note: I have been doing this since 1992 and have multiple accounts (Charities, IRA’s etc) that have received money from me every month for 14 years and I have never written or signed a single check! I know from personal experience that the system works and I have never had any problems.
You can get very creative with how you build wealth and who you help build wealth.
* Set up an automatic bill pay to fund a child’s college education. There are many states that have plans that start with low monthly fees when the child is born or still young.
* Set up an automatic bill pay to fund a child’s savings account, just have the money be sent to the child’s bank with their account number listed on the check memo “Deposit to account ######”
* Set up an automatic bill pay to send a charity a payment every week. Remember that I said earlier that this habit can help you build spiritual wealth? If your church receives an automatic charity payment every week you are helping to support your church every week, even when you miss a Sunday service.
* Set up an automatic bill pay to send money to someone in need.
* Set up your bill pay to actually pay bills that you have paid late in the past….you may be able to save enough in prevented late fees to fund your wealth building payments!
The possibilities are endless…..you just need to take action and make it happen!

Ever wanted to start an MLM to Earn Money at Home? You’re not alone.
There are many successes and failures for people with ambition just like you. It is important to realize that in order to earn money at home with an MLM business, you must ask yourself the following questions:
1. Do you have the time available to earn money at home working at a business?
Many MLM home businesses require a commitment of 5-10 hours per week dedicated to organizing and contacting prospects.
2. Is there a place where you can work at home easily without distraction?
A home office can be a desk in a kitchen or in the garage. The idea is that it is a place where productivity occurs. You are organized, focused, and happy. . . yes, being happy is a result of organized and focused work, really!
3. Do you have some capital resources to dedicate to an MLM business?
There are basic business tools that everyone needs: a computer, a telephone and a fax machine is also very useful. An Internet connection is vital. You can probably get a bundle with your cable or phone service. Just remember that a satellite connection sounds high tech but you should stick to regular cable service unless you are living in a remote area with few inhabitants.
4. Is there investment capital available for the MLM?
Every business needs some small investment to grease the wheels of business. If you want to sell lemonade on the corner you will have to go to the grocery store to buy some lemons.
5. Do you have a plan?
Many businesspeople that succeed in business are used to making a plan for success and sticking to it. The success of MLM Marketing depends on it.
There are a range of products and services offered by MLMs and the key to succeed is finding the right product that fits you. Every MLM has an Upline and a Downline. But does the company represent your goals for lifestyle and income? Do they have an Upline that gives you confidence? What about the compensation plan?
The newest area of growth for MLMs is the travel industry. I personally am involved with the biggest player to enter the Vacation Club industry, offering an Exclusive Luxury Resort Travel Membership combined with a lucrative compensation plan. However, just because it’s right for me, doesn’t mean it will be the right fit for you.
The bottom line is that you can earn money at home from an MLM but you have to make sure that you have weighed the pro’s and con’s and chosen the right one for you, then you must put some time and effort into it to see your dreams become reality.

Money is the root of….., well you know the rest. I have heard so many different conversations about money throughout my life. Some conversations demonize money, making it seem as though wanting to accumulate it is an evil sin, while others champion the notion of accumulating it, making it seem as though this pastime is humanity’s sole purpose for existing. There are other conversations about money that infer that only a small percentage of society will ever have the ability to accumulate money because of privilege, while the masses will be destined to simply chase it to no avail. There are many differing views as to what money is, how to or who can amass it, and whether it is right or wrong to do so. Well, I am not going to get into the morality issue involving the accumulation of money, instead I would like to focus on the following question: Does the accumulation of money equate to wealth? In order to properly respond to this inquiry, I will have to address some of the conversations we just touched upon by answering the following questions:

What is money?Is money necessary?Are some people destined to accumulate money while others are doomed to simply pursue it to no avail?What is wealth?

What Is Money?

Money is a form of currency. It is a physical representation of value used for exchange in the marketplace. Money was not always the preferred means of exchange, however. Bartering (a economic exchange rooted in trading one set of items or services for another) was the means of exchange long ago, as the marketplace was far simpler, consisting of fewer products and services for sale, as well as fewer people in which to sell these products and services to. Prior to the formation of large villages and international trading, the marketplace did not require a complex currency/exchange system. However, as the numbers of buyers and sellers grew, it became more apparent that a more complex form of exchange would be needed. Hence, the creation and utilization of monetary-based exchange systems.

Now, while you and I can read the worth of a dollar bill on its face, as a dollar, its true worth may not be that, as a currency’s value is never stagnant, as all of the values of the different currencies’ around the world are constantly fluctuating. This fluctuation is most often based on the stability of the market(s) that a given currency supplies. Therefore, as with other currencies around the world, America’s dollar fluctuates based on the stability of the marketplaces it serves. However, there is one changing dynamic fundamental to this economic theory that seems to currently be upsetting the apple cart, and that is globalization. As the world moves closer to a global economy, each nation’s currency will be more interconnected with one another, meaning that instabilities in markets outside of one’s physical borders will have an ever increasing impact on one’s currency.

I say all of this to show you that money is simply a fluctuating commodity used for the buying and selling of products and services in the world’s various marketplaces. However, the problem is that many of us put far too much emphasis on money as a tangible good, which often leads to unsuccessfully chasing an intangible theory.

Is Money Necessary?

Yes, it is. One cannot deny the necessity of money, being that it is the primary means of exchange around the world. Money is necessary for living a life that most would deem acceptable, which includes obtaining and maintaining the basics such as shelter, food, and clothing. However, where we often begin to get ourselves into trouble is when we start to acquire some of the niceties such as big screen televisions, sports cars, or elaborate vacations. I try to be very careful when talking about these niceties, because this is where a lot of people often get carried away with the “power” of money. Be clear that niceties or luxuries are not necessities, nevertheless many people often incorrectly lump the two together, causing them to relentlessly pursue money in what some would deem a sinful way. Again, I am not here to make any moral determinations about the pursuit of money, because what one may demonize as the evil pursuit or accumulation of money, another may deem as the positive result of his/her hard work. Therefore, that determination rests in the eye of the beholder. Nevertheless, there is no getting around the necessity of money to fulfill our most basic needs.

Are Some People Destined To Accumulate Money While Others Are Doomed To Simply Pursue It To No Avail?

This question plays right into the “woe is me” conversation that many people seem to have about the accumulation of money. While it is true that some people have a leg up on money accumulation, they do not have a lock on it, because remember, money is a fluctuating commodity (an intangible theory in essence). Money is based on a perceived value. Therefore, no one is doomed to be poor or penniless. However, whether you accumulate money or simply chase it resides in your perceived self-worth. Now, I know some of you may be saying this guy is crazy, but I am telling you the truth. If you were not born with a silver spoon in your mouth, then you have to shift your thinking in regards to your self-worth. Once you do that you can begin to accumulate money if that is your desire. What do I mean by shift your thinking?

Every product or service bought or sold on the world market has a value that fluctuates based on what consumers are willing to pay for it. As I previously explained, even the value of money which is the marketplaces means of exchange fluctuates. This goes to show that everything is a commodity. Everything has a value, even you. You must now ask yourself a couple of important questions to get yourself in the proper mindset if you want to accumulate money:

What talents or skills do I possess that can be of great value to others?What talents or skills could I learn that can be of great value to others?Am I willing to develop my talents and skills to the best of my abilities?Am I willing to wait until my talents and skills are honed before I put them on display?Am I willing to put myself out there to demonstrate my talents and skills to the public?Am I willing to demand that my talents and skills be compensated based on their value in the marketplace?

I hope you are beginning to get the picture. Just like every other product and service in the marketplace has a monetary value, so do you. The question is what do you bring to the table that is of great value to others? Many people don’t realize that they are a commodity or don’t want to acknowledge it. But whether you want to acknowledge that fact or not, we all are, and those of us that realize this early on and take the appropriate steps to develop our talents and skills before our peers tend to accumulate money at a much easier rate than those who don’t realize, refuse to accept this fact, or develop late.

Does this mean that individuals that don’t realize, refuse to accept this fact, or develops themselves late are doomed to simply live a life pursuing money to no avail? Unfortunately, the answer is most likely yes. Just look at the wealth disparity in America, a place where one is afforded the freedom to pursue his/her dreams. The masses have the wrong mindset, because they are chasing money as though it is a tangible asset. One final point on this topic, for those who fall into this category and somehow accumulate money, chances are it will be short lived if you do not realize that you must have some service or talent to contribute that society values if you want to keep the money flowing, because if not, the money will eventually run out with no way of replenishing it. Just look at the numbers of individuals that have obtained riches through the lottery or inheritance only to squander it over time.

What is Wealth?

Unlike money, wealth is not relegated to that of a fluctuating commodity used primarily for the purpose of exchange in the marketplace. Wealth represents an accumulation of any and everything dear to an individual. This can include people that you value, possessions that mean a lot to you, the remembrance of experiences that played a key role in your life, the attainment of a quality education, a high level of self-esteem, good health, happiness, and not to be left out, money (if you value it). A key difference between wealth and money is that the accumulation of wealth implies that the person doing the accumulating has some level of wisdom, self-worth, and maturity, as it is often very difficult to accumulate items of wealth if one does not understand what, why, and how to gather and maintain items he/she values.

Does The Accumulation of Money Equate to Wealth?

We have finally arrived at the overarching question: Does the accumulation of money equate to wealth? Well, after having read up to this point, what do you think? No, as the accumulation of money is only one aspect of wealth, and actually the lesser aspect in my view. Money can really only provide greater power in the marketplace, but if you realize your self-worth (which is what wealth requires), you can accumulate and maintain the money as well as all of the other things that we spoke about in regards to wealth. Remember, money is only one aspect of life and not life itself. You are life itself, and from you everything manifests. Therefore, I would pursue wealth over money any day of the week. A final thought, money without the development of self is hollow, empty, fleeting, while development of self (inside of the realization of one’s worth) breeds wealth for a lifetime.