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How do I get rich?

The big question many average Australians occasionally ponder is "How do I get rich?"

Regrettably, the thinking on this subject is too short-term and very non-business-like. And that's the tip for the day - building wealth is about turning your normal self into a business when it comes to getting richer.

Have a think about the richest people in the world - what's the common link? Apart from deep pockets, most have started and/or grown a business.

Bill Gates, Warren Buffett, Ted Turner, Donald Trump, Rupert Murdoch and their ilk have become rich from business.

So, that's one strategy you should be thinking about to turbo charge your bank balance.

However, if you don't feel adventurous enough to join the other 1.88 million small businesses out there, you at least should adopt some business practices to build your wealth.

This means you should create a money plan just as a business should start with a business plan. This requires you to work out your goals and then piece together the strategy to make it happen.

Many smart businesses actually draw upon the services of experts to ramp up their productivity and profits. In recent times business coaches, and even life coaches, have been employed by businesses to get the best out of their key people.

Historically, shrewd businesses went looking for the best accountants and lawyers to ensure they kept their tax bill as low as legally possible.

Considering how much tax we pay, every Australian should be committed to legally lowering their tax bill. I recently asked a business audience three questions that sum up how non-business-like we can be with or money.

First, I asked who paid tax? All hands went up, though there might have been a fibber or two. Second, who liked paying tax? All hands went down.

Third, who has gone to an expert to have him or her consider their situation to lower their tax bills? Sometimes I get 10 per cent of hands up, but this is in a business audience. In normal people groups, it is usually no hands up!

Two things hold people back from getting money-saving or money-making information. Either people are procrastinators or they are tight. But it is false economy.

I recently saw a battler complain about an accountant's hourly rate for advice, but he ignored what the advice could be worth.

He saw $200 an hour as an extortionate rate, but if the advice saved him $10,000 a year, you could argue he got off cheaply. If you think like the majority, the odds are your wealth will be like the majority.

Published on: Friday, March 09, 2007

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