From a young age I wondered what strategies millionaires followed in building their wealth. Were they a lot smarter than most? Did they work that much longer or harder than everyone else? . . . No way!

So, . . . if hours, effort, or intelligence are not what separates the rich from the average person who is swamped with debts and not enough income, then . . . what is?

For years these questions used to puzzle me and I set out on a search for knowledge to really discover the magic ingredient.

What amazed me was that some of the wealthiest people I met had little or no education and were working in fairly ordinary jobs. Often these people started from nothing and had amassed great fortunes. In general, these people did not flaunt their wealth and therefore their wealth was not always obvious. The book, "The Millionaire Next Door", by Thomas J. Stanley and William D. Danko indicates that, far from being a big spender, the average millionaire is a 57-year-old man, married with three children, running a "dull-normal" business such as welding, pest control or paving.

Interestingly, many people on high incomes with good qualifications have few assets and large debts!

It seems crazy doesn't it? It's not what you'd expect. In fact, I learnt that many people who appeared to be wealthy were actually quite poor!

As part of my research, I attended lots of seminars and read volumes of books. I spoke to a multitude of successful investors. In fact, I spent tens of thousands of dollars and more than eight years studying! I eagerly soaked up as much information as I could. As I was learning, I applied my newfound knowledge and tested the principles and methods I had discovered.

I studied the ideas of many "property gurus" such as Robert Allen, Mark O. Haroldsen, William Nickerson, Russell Whitney, John Childers, Dave Shamy and Raymond Aaron. Through Robert Kiyosaki I also learnt from Bill & Cindy Shopoff, John Burley and Keith Cunningham. Since not all of the overseas techniques applied to me, I sifted out the relevant bits.

I began to realise that what I was learning was a truly remarkable and workable way to grow rich. I also found that some of the wealth-creation ideas I had learnt earlier were actually making me poorer! I had to change my ideas and follow a different approach. When I did so, the results were amazing! I couldn't believe how easy it was. In fact, it seemed too easy.

One of the major lessons I learnt was that most successful investors have developed a formula which they are comfortable with and which they apply as their guideline in searching out and acquiring new investments. Now, you may consider this to be a blinding flash of the obvious but sometimes it's "hard to see the forest for the trees." When I think about it, - it's so simple. Whenever my 11-year-old daughter wants to bake a cake she simply follows a recipe. That way she can achieve a consistent result. What a concept!

So why is it that so many people don't use this simple idea to increase their wealth?



Could it be because they are not familiar with the formula concept and that therefore they have not yet developed a formula that they are comfortable with? Are they confused by the many investment options available and do they feel vulnerable to the clever sales techniques of investment "consultants" who are more interested in maximising their commission than in increasing their clients' wealth?

So how can you develop your own formula?


The first thing to do is to find out what types of investments you are really passionate about. In other words, if you like the idea of investing in shares then you need to learn as much as you can about the share market or stock market and the companies that you may like to invest in. If, on the other hand, you are frightened by the idea of investing in shares, then you need to find something that you are comfortable with. Perhaps real estate might be less risky for you.

For you to succeed at investing, it is essential that you like what you are investing in.

The next step is for you to analyse your risk profile and gain an understanding of how you react to certain events in the market place. In other words, how do you react when the market goes down?

Do you panic and want to sell so that you can cut your losses or are you prepared to ride out a temporary slump and wait till the market recovers?

What happens when the market shows strong gains? Do you become more gung ho and cocky? Do you believe that the market will never go down - or are you prepared to cash in some of your chips and take some profits?

Do you get stressed out by movements in the marketplace? It's not about right or wrong. It's more about understanding your own behaviour and how you respond to certain movements in the market.

The markets are largely driven by mass psychology and the two emotions of fear and greed. You need to know what drives you and under what circumstances. More about that in a future article.

To find out more about how to invest internationally and other information that will start you on your way to building wealth, click on the link below to subscribe to the Q Wealth Report!