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February 20, 2007


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DISCIPLINE LEADS TO WEALTH. Wealthy people have a different concept in life, they tend and become rich not because they earn by the millions but the discipline that they have acquired and developed over the years that made them really affluent. The millions of dollar earnings are mere subsidiary of what they have developed in life - a strong sense of discipline and frugal life. Earn more than you spend is the yardstick to become wealthy. Rich people have developed a discipline which culminated their affluence and led to the perception of what we call the millionaire's status. Let me cite some common disciplines which a person must develop over the years in order to be wealthy.
1. FOR A PERSON TO BE WEALTHY HE MUST ACCEPT THAT ALL BUSINESS CONCEPTS, PRINCIPLES, LAWS, THEORIES AND DOGMAS ARE STRICT DISCIPLINES. If a person wants to be rich and wealthy he must accept the reality that commerce and business is turned into the wheels of good business principles, theories, laws, concepts, formulas and dogmas. He must realize that great business empires were built and constructed over the years using all these good principles and theories. He must adhere to these principles similar to the principles and laws of the supply and demand. The law of diminishing returns must not be taken for granted. The principle of caveat emptor or let the buyers beware is long and time tested principle which has made business a success must not be disregarded. The policy that the customers are always right is still being practiced in the modern world.
2. IT IS THE REALIZATION THAT SAID STRICT DISCIPLINES MUST ALSO BE ADHERED TO THE LETTER. All such good principles and disciplines must not only be laid to the table, they must also be put to practice. As Murphy's law would say: " The ship in the port is safe but for what is the ship for." Let us walk the talk, let us put into practice what the great business entrepreneurs have taught us for that is the only way to the path of business bliss and prosperity.
3. BE A WEALTHY PERSON FOR THE DISCIPLINE IT WILL BE IMPOSED ON YOU RATHER THAN FOCUSING ON THE MILLIONS OF DOLLAR PROFITS YOU WILL EARN. Be wealthy and rich for the better person it will make of you - frugal, investment conscious, earning more than spending, getting out of debt, invest first and what is left over spend it, hard working, spending only to meet the needs rather than wants, shopping while the stomach is full, eat only when hungry, enter into agreement with employer to (401) K programs, investing in mutual funds, concentrating more on the Balance Sheet rather than the Income Statement and delaying instant gratifications would make a person wealthy. Remember what President Abraham Lincoln once said: " You cannot help the poor by being one of them." is a sound business policy which is still applicable in our present world.
Being frugal and making the habit of saving cash in the bank is the backbone of being wealthy. Earn money, then save it and finally invest it in high yield interest instruments like mutual funds, bonds, stocks and treasury bills would make institutions and firms wealthy and rich.
5. ONE OF THE BEST FORMS OF INVESTMENT IS IN THE GOVERNMENT AS IT WILL SELDOM BECOME INSOLVENT AND THE STATE WILL NOT RUN AWAY FROM ITS OBLIGATIONS AND COMMITMENTS. Investing in treasury bills, government long term bonds and government mutual funds are one of the strongest forms of investments as the government and state will seldom run away from its obligations as the wealth and assets of the nation is at stake. It will seldom become insolvent and if so happens other nations will come into the rescue of lending more money to the state.
6. DO NOT PUT ALL YOUR EGGS IN ONE BASKET IS A DISCIPLINE AND ADVOCACY OF DIVERSIFICATION. Entering into business would mean diversifying ones business lines to mitigate the risk of failures. The concept of having multiple streams of income is but the residue of practicing diversification. He who diversifies his business activities would last long in commerce. What is the importance of diversification is simply to avoid the lost of all capital and cash flows simply in one business alone. Remember Aesop's fable when it said: " Variety is the spice of life." Diversify and have a variety of business lines and activities would lessen the vulnerability of getting insolvent.
7. PROCURING ONLY WHAT IS NEEDED RATHER THAN BUYING TO SATISFY OUR WANTS WOULD ALSO MEAN A DISCIPLINE AND HAVING A VEHICLE TO BECOME WEALTHY. According to Maslow: " The most expensive and the most difficult thing to do in this world is to satisfy our whims including the need of recognition." Rich people understand this principle and for them to become rich and to be austere they also procure what is only needed by the company and not investing on things that will satisfy their wants. Wants may mean expensive diamond rings, watches, luxurious cars when second hand cars will do and dinning and celebrating parties for socials without business inclinations would drain the buckets of the company.
8. PRACTICE THE MIDAS TOUCH: " SPEND ONLY IF THE TRANSACTION WOULD INCREASE MORE ASSETS AND INCOME FOR THE COMPANY." Always ask this question before making expenditure: Will these expenses earn more income and cash? If the answer is no, forgo the expenses. In commerce there is such thing as money seeds, these are seeds purportedly to be planted, fertilized and watered so that it will grow and one day it will bear fruits ready for harvest and to be sold for profits. Remember also the two rules in becoming wealthy: Rule number one: Never lose money and rule number two: Never forget rule number one always and at all times.
9. DELAYING INSTANT GRATIFICATION. It simply means that we must postpone short and immediate small financial victories for the greater price of having and gaining financial independence and affluence. Small amounts and idle cash must be invested for future business economic activities. While squandering idle funds for instant and short joys and gains would be debilitating for the company. Save for the rainy days. Save and invest so that those invested funds would grow into an acorn one day that would insure financial stability for the company. Insure also our love ones, employees and our institutions would guarantee relief of financial stress during times of economic crisis like fires, robberies and accidents.
10. ALWAYS FOLLOW THE CONCEPT OF BE, DO THEN HAVE. It simply means be a company with sound principles and integrity, do what is necessary to dominate the markets and have which is the natural result of the business discipline and these are profits, values, cash and wealth.
Any reactions on the comments made, you can contact me at my e-mail address: May God bless us all!

My address is Baguio City, Philippines -UB

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