In our last blog on wealth building, we discussed the importance of being aware of the fact that “we don’t know what we do not know,” discovering and becoming cognizant that there are unlimited amounts of things that we do not know that even exist, much less have an understanding of.
Here is a story that should open all of our eyes:
A famous man in our nation’s history, Cornelius Vanderbilt, amassed a 105 million dollar fortune by the time he died in 1877. Now that is a lot of money. Think Bill Gates. He did it in the transportation industry. Around the turn of the century, He gave 1 million dollars to Central University which later became Vanderbilt University.
Many years later in 1972, 120 of his heirs gathered at Vanderbilt University. To the astonishment of many, there was not one millionaire among them.
Several years before this gathering, the grandson of Cornelius Vanderbilt said,
“It has left me with nothing to hope for, with nothing definite to seek or strive for. Inherited wealth is a real handicap to happiness”, said William K. Vanderbilt.
Amscel Rothschild was an entirely different story. He died in 1812 with five sons. One significant thing that he did for his heirs was establish a family bank. His sons became established in five different capitals in Europe. Instead of giving them the inherited money, he established these rules on any business venture or investment that they wanted to make:
1) The family bank would loan them the money and they had to pay it back.
2) They were required to write down and shared what they had learned about a particular investment or business that they had invested in so the other family members could learn.
TODAY THE ROTHSCHILDS HAVE MANY DESCENDANTS WHO ARE MULTI- MILLIONARES.
WHICH FORTUNE WAS PRESERVED AND PASSED ON?
How many times over the years have we heard about someone winning the Lottery? Usually it is a very large sum of money, and then we hear how five years later they are completely broke. One man said, “if you win a million dollars, you best become a millionaire so you get to keep the money.” In other words you must learn how to manage and invest a million dollars so you don’t lose it.
A proverb from the Bible says, “Through skillful and godly Wisdom is a house (a life, a home, a family) built, and by understanding it is established [on a sound and good foundation], And by knowledge shall its chambers [of every area] be filled with all precious and pleasant riches.” The three most important words in this proverb are knowledge, understanding, and wisdom. I’m convinced that building wealth that lasts, begins with acquiring knowledge so that you know how to attract and manage wealth. Then understanding on what needs to be done and wisdom on how to do it will come.
I am asked all the time, “Where do I begin in my journey in wealth building?” Or “I have a $1000 where should I invest it?” That answer is easy. You begin by investing in yourself. Spend the $1000 on obtaining knowledge you do not have. Attend seminars, purchase or rent audio or video programs on the subjects that help to know how to build wealth. Also, find the right people to associate with. That can broaden your knowledge and understanding.
Remember part of obtaining knowledge is becoming educated enough just so you know the right questions to ask. So to begin your quest on building wealth it must begin with obtaining knowledge about a particular category of investment or business, and learn the method, processes, and systems , along with developing an entrepreneur’s and investors mindset.
We will be publishing a new blog post every Sunday, Monday, Tuesday, and Wednesday. Come back tomorrow for Real Estate discussion!