Perhaps you have asked yourself how someone becomes wealthy. How do I become wealthy? The best way to become wealthy is to study the success of those who have already achieved what you want and then follow the same formula of success which they have followed. There are many great examples of individuals who have started with nothing and now have amassed fortunes. If they can do it, you certainly can do it too.

Our purpose here is to examine some of the principles of success others have used in creating their wealth.

1. Income.

It should seem obvious that in order to create any financial wealth one must first have income from one or more sources. That income can come from a job, a business, investments, or a combination of all three. All three sources can, if managed properly, allow an individual to build wealth. There are many stories of individuals who worked seemingly insignificant jobs who took care of their money and over time became wealthy.

While it is certainly possible to build wealth with income from only a job most of the people whose names are well known have created their wealth by starting their own business or becoming savvy investors. Starting your own business and investing wisely allow you to take advantage of a very important tool, Other Peoples Money (OPM). In the business world OPM is more properly termed leverage.

One of the most rapidly growing areas of business today is Network Marketing. Each day thousands of people are starting their own Network Marketing business. In fact, both Robert Kiyosaki and Donald Trump have said that if they were to start over in building their wealth they would do so in Network Marketing.

2. Eliminate Debt.

This step should be obvious, but to many people debt is simply a way of life. By eliminating debt you will immediately get a return on your money equal to the rate of interest on the debt you have retired. On credit cards that can be upward of 20%. It is interesting to note that those people who have high debt, particularly credit card debt, seldom invest in anything with returns exceeding 4% - 6%, if they invest at all.

You should have everything you want, which you can afford. If you can afford the monthly payment on something you want does that mean you can afford the item? Generally not!

While debt is an important tool to use, particularly in business, it should be minimized or eliminated on a personal level. Make certain that you understand the difference between good debt and bad debt.

3. Savings.

Pay Yourself First. How many times have you heard that but have not done any thing about it? It is essential that you have a clearly defined savings plan. To start you should be saving 10% of your income and then increase that as you are able. Everyone should have an emergency reserve fund equivalent to 6 months of your living expenses. Other savings plans should include saving for major purchases, and to take advantage of investment opportunities as they are available.

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