Brian Tracy explains two wealth-building rules: start investing early to harness compound interest, and buy assets steadily over time rather than trying to time the market. He tells the story of an immigrant who bought one property a year starting at age 20 and became a multimillionaire through discipline alone.
There are two great principles of wealth attainment and they're both equally important to understand and implement in order to be successful and acquire wealth. The first principle of wealth creation is make compound interest work in your favor. Einstein said that compound interest is the most powerful force in the universe. Get that money in there and get it working for you. Interestingly, Peter lynch of Magellan said that if you it's not timing the market that makes you rich, it's time in the market that makes you rich. Remember, if you invested $1 at 3% at the time of Christ, you'd be worth all the money in the world today with compound interest. Compound interest is phenomenal. So make it work in your favor by getting the money in there early and leaving it there to work. The second principle of wealth creation is to use dollar cost averaging when you buy stocks. Don't worry about being right every time or getting the lowest price when you buy. It doesn't really matter unless of course, stocks are overpriced at the end of a boom. But if you invest a steady amount of money every week or every month or every year, then you'll end up buying things at the average price. The prices will go up and down, but you'll end up buying them high, buying them low, buying them average. And over time you'll get the very best average, average deal. Dollar cost averaging is one of the great techniques for financial success. Now here's an example of dollar cost averaging investing steady, steady, steady, year after year. I have a good friend who came over here as an immigrant at the age of 17. Couldn't even speak English. So he began to learn English. And when he was 20 years old, he could speak enough English to begin studying financial success and going to college. Well, I had dinner with him not long ago at his four acre property in his 16,000 square foot home in a beautiful community on the east coast. He's worth millions of dollars. Today. He owns banks and shopping centers and national corporations. Here's what happened. When he was 20, someone told him that real estate is the key to financial success. They're not making any more of it. You should own real estate. Well, he never thought about that. And at that time he was a student and didn't have very much money. But he was working evenings and weekends to pay for his needs, which is what they used to do in those days. So he decided he would buy one piece of property each year. His first piece of property was in a small community outside of town and it was a lot and it cost $25 a month to service it. He had to sweat bullets to make those monthly payments. But his goal was to buy one piece of property a year and he kept on doing it. He's now 49 years old. The last piece of property he bought last year was a 225 million dollar shopping center. He still buys one property a year, only now they're much, much bigger. The skill and experience and discipline that he developed over time in buying those properties, which got bigger and bigger, made him a millionaire and then a multi millionaire. So what's your excuse? What's our excuse? We're surrounded by hundreds, thousands, even millions of these stories. What is our excuse? It's always one thing. What is it? It's lack of discipline. So remember, the two great principles of wealth creation are making compound interest work for you by getting the money in there and working and making using dollar cost averaging, whether it's buying stocks or real estate. If you enjoyed this information and would like to receive six additional free videos on the top questions people ask me about personal and financial success and achievement, visit www.briantracy.com successmastery. That's www.briantracy dot com success mastery and we'll set you up with six free videos.
