Wealth Is More Than A Mindset

Published on 23. Jun, 2010 by Thomas Herold in Wealth

“Creating Wealth – Retire in Ten Years,” by Robert G. Allen, is written in a very relaxed, conversational tone that anyone can relate to. It is almost like the author is sitting right across from you in a casual discussion at your dinner table. He has a wealth of information providing numerous metaphors, comparisons, and stories that prove his points.

Robert G. Allen has a good organizational structure for his wealth-creating book: Foundations, Automatic-Pilot Principles, Timing, Risk/Reward Ratios, and the Proper Mindset. His chapters provide more specific examples within each of these larger categories. “Creating Wealth” covers the spectrum from restrictive fallacies that keep people poor to specific strategies to generate wealth.

Pillars of Strength
Robert G. Allen begins by breaking down the fallacies that hold us back from generating wealth. He explains that many of these ideas have an ounce of truth in them, but lead to a defensive mentality that doesn’t take risks.

Who doesn’t want to be wealthy? Everyone wants to be wealthy, yet few succeed. Why do some men have more wealth than they will every need, while others starve in poverty? What are the secrets to wealth creation?

“Creating Wealth” continually encourages readers to ask themselves the same question – “Do the wealthy follow such-and-such a strategy?” Robert G. Allen shows readers that there are concrete methods to wealth creation.

Automatic Wealth Generation
F. Scott Fitzgerald said, “The rich are different from you and me.”

Some people will argue about what that means exactly, but won’t disagree with the basic premise. Have you ever wondered why so many of the wealthy seem to be on vacation all the time. Somehow, they continue to generate wealth. How do they do it?

Robert G. Allen talks about the stages of wealth. The final goal is to be in a position to enact the “Automatic-Pilot Principle.”

Just like poker, wealth creation is about managing your assets to the maximum. The best poker players are always calculating odds, looking towards the future, and measuring the value of their assets. They maximize the potential of every hand.

Creating wealth is about optimizing our assets so that we can gain higher levels of leverage and control. The wealthy have good discipline in using proper actions to take advantage of opportunities for acquiring more wealth. They see opportunities that others miss. They do not waste their time with fruitless pursuits. They cut their losses before they lose everything. They anticipate the future. They set goals, visualize and determine the risk-reward probability of success.

Robert G. Allen shares his “Seven Principles of Wealth,” which combine the most important facets for controlling wealth.

Timing
While some professors might talk theoretically about wealth creation, Robert G. Allen puts his money where his mouth is. He has challenged anyone to give him a small amount of money and transport him to any city in the United States – and in 72 hours he will purchase real estate with little money down. Read the book to see if he succeeds at this challenge.

The wealthy have a different mindset that anticipates opportunities. Many poor people lament about the latest success stories – stocks, real estate, and commodities – telling themselves that they would be rich if they had invested at the beginning of a trend cycle. The funniest thing is that when you start talking about the next “big thing” and ask them how they plan to take advantage of it – their response is exactly the same as when they missed their last opportunity. They refuse to learn.

Robert G. Allen continually compares foolish habits of the poor versus wise habits of the wealthy in articulating his point. Wealth creation demands proper thought processes; after failure there needs to be a learning process.

There are many gems of wisdom in this book that are well-worth the purchase price. Robert G. Allen goes through “Eight Cookie Cutters” that provide different strategies for succeeding in real estate. Learn about scoring mortgages, diversification, and compound interest. Learn the basic steps to dealing with problems.

Robert G. Allen is honest about the pitfalls of debt. He asserts the importance of leveraging your assets to generate wealth. He even include basic forms for landlords too.

Risk versus Reward Calculation
The wealthy don’t gamble, they calculate the proper risk versus reward ratio. Interest measures the risk involved with any investment by assigning the proper reward. The wealthy are able to properly measure how different events will affect their financial assets.

Robert G. Allen discusses a variety of different financial assets: gold, coins, real estate, and money market funds. Discover the different types of wealth and how they differ in terms of liquidity, hedging, and historical rate of return. For each investment, he calculates how different interest rates will affect wealth accumulation.

What is Wealth?
Whereas, most people believe that wealth is merely money, Robert G. Allen explains that wealth is more of a mindset. The wealthy are in a position to use their excess money (profits) to leverage their investments. The powerful use money to increase their power and vice versa.

While the poor might have the mentality – “You are what you eat.” The wealthy believe that “You are what you think.” Robert G. Allen explains how “mental work” can control “physical work.” Robert G. Allen concludes the book with a list of inspirational quotes from the successful.

Whether you want to understand the general concepts of the wealthy or learn specific details about real estate, Robert G. Allen’s “Creating Wealth – Retire in Ten Years” has the information you need. It is a great read, keeping you interested and entertained. With this great wealth creation book, you will be able to develop the proper thought processes, mindsets, and habits to be successful.