Rapidly Make Money »

We all know the drudge of going to work to get a paycheck. Or, some of us “entrepreneurs” out there to make money may go to work for ourselves and our clients. Regardless of which category one falls into, he or she is still just a gear in a big, moneymaking machine. Of course, this isn’t your moneymaking machine; it’s somebody else’s – somebody who knows how to build systems.

Building systems is one of the five critical skills necessary to create a financial empire and to make money. People who build systems learn to put what they have into their work, rather than putting themselves into their work. They put things in place that are there to run automatically. For instance, a web engineer must create a web page himself, and he is the one responsible for all the work. He sets up the systems and runs each of the pieces. He realizes there are too many tasks for him to handle, so he hires a few employees to help him with the overload of work. The employees run the graphics, the accounting, and the advertising; he runs the programming of the website. Thus, he is an integral part of the system. If he were removed, the biggest piece of the system would be missing – the business would fail. He must work, otherwise his income will cease. This is the situation that most “entrepreneurs” find themselves in, and it is precisely the reason that nine out of ten businesses never make it past the first five years. A business simply cannot survive without proper systems in place.

In a system, everythign affects everything else

The web engineer, realizing that his business will fail unless he changes, decides to hire more people. He no longer can do what he loves – design web pages. Now, he must step back and become a manager – he has finally hired out his own work. He has set up systems, and he has placed people in those systems to run them. His job now is to manage the system; his job is to make sure that the employees are following the system in place.

He will keep building and building, and eventually he will have too many employees, and he will need to hire more managers. Now, he has stepped back to a true leadership role. He is the one that develops new systems and forges ahead, and his managers are the ones who make sure the systems he sets up are followed. This is the proper way to run a business. You must build systems.

Books to Read:

Real Estate:

- How I Turned $1,000 into Five Million in Real Estate in My Spare Time by William Nickerson

- How to Make a Fortune Today Starting From Scratch by William Nickerson

- Landlording by Leigh Robinson

- What’s a Landlord to Do? by Leigh Robinson

- Streetwise Investing in Rental Housing by H. Roger Neal

- Missed Fortune 101 by Douglas R. Andrew

Stock:

- Security Analysis by Benjamin Graham

- The Intelligent Investor by Benjamin Graham

- Common Stocks and Uncommon Profits by Philip A. Fisher

- The Theory of Investment Value by John Burr Williams

Biographies:

- The Autobiography of Andrew Carnegie by Andrew Carnegie

- Made in America by Sam Walton

- Grinding it Out: The Making of McDonald’s by Ray Kroc

- The Snowball: Warren Buffett and the Business of Life by Alice Schroder

- Losing My Virginity by Richard Branson

- The Autobiography of Benjamin Franklin by Benjamin Franklin

Others:

- Think and Grow Rich by Napoleon Hill

- How to Win Friends and Influence People by Dale Carnegie

- Rich Dad, Poor Dad by Robert Kiyosaki

- The Cashflow Quadrant by Robert Kiyosaki

- Guide to Investing by Robert Kiyosaki

- The E-Myth Revisitied by Michael Gerber

- Law of Success by Napoleon Hill

- The Greatest Salesman in the World: Part 1 by Og Mandino

- The Greatest Salesman in the World: Part 2 by Og Mandino

- The Richest Man in Babylon by George Clason

- The Art of the Start by Guy Kawasaki

- Secrets of Closing the Sale by Zig Ziglar

- See You at the Top by Zig Ziglar

- The 7 Habits of Highly Effective People by Steven Covey

- Any college textbook on accounting or finance

These books are good starting points. If you know absolutely nothing about money or getting rich, start with books in the Others and Biographies categories. These do not give any technical information of any kind, and many who know more about the ways of money might criticize some of these books. Oh, well. I started with Rich Dad, Poor Dad and have moved way beyond it, but I still accredit it as the book that got me started.

The Third Step: Saving Money

This is undoubtedly the most boring part of the getting rich process. It is also undoubtedly the most difficult. You find yourself, now, having completed steps one and two, deprived of many of life’s luxuries you once enjoyed, and you find that your friends and family think you are insane. And! You find that nobody has rewarded you in the slightest. Well, get used to this feeling, because you’re going to feel like this for a few years. Yep, you read that right – a few years.

You will now save all of that workable cash. Stockpile all of it in a checking account that you do not touch.

When do you stop?

When you find that you have saved a year’s worth of living expenses in your account, then you can start saving all over again in a savings account. Many will say that you only need 3-6 months of living expenses saved up. That is certainly better than nothing, but do remember that it is very unlikely that your year of living expenses will keep you going for a year. This fund is for all emergencies. What if you suddenly need a new car? What if you need to give money to a dying relative who has no medical insurance? There are plenty of things that can happen which will use up this money. So, make sure you have a year of living expenses saved up in that checking account. If you have done the minimum (workable cash = living expenses), then this will take you a year.

Okay, I’m saving in a checking account now. Now what?

Great! There is no next step. Just keep saving. Okay, okay, there is a next step, but you shouldn’t think about it. You are going to be saving in this checking account for so long that you shouldn’t even care about the next step. Focus on saving the money.

Throughout the third step, you should be studying ways to make money. Information will be provided on this website, but you should be aggressively studying on your own, too. Try some of the books we have here in our books section. Continue trying to find new ways to cut costs and increase your income.

This step will actually become easier as time goes on – when you see your accounts growing to sizes you have never seen before, you will get excited. Then, suddenly, it will become a lot easier to save even more money. It does indeed get exciting.

Check the home prices in your area – duplex’s or quad-plex’s, if possible. Figure out the average value. When you have saved 40% of this in your savings account, it is time to move on to the fourth step. Be sure to replace all income used from the emergency savings (if you use any) completely before you begin to save again in your savings account.

If you are ready to move on to step four, pat yourself on the back. You have just finished the hardest part of the entire getting rich process. You have gotten farther than most people who try to get rich. From now on, everything is downhill – it will be easier forever. You have what it takes to be rich. Congratulations, sir or ma’am. You are a future multi-millionaire.