4. Avoid get-rich-quick schemes

These schemes are responsible for the financial losses of many. This is how many go bankrupt.

The rule is that if an investment plan looks too good to be true, it probably is. All these investment vehicles that promise very high returns are most probably a fraud. Never invest in such investment schemes.

If your conscious is not feeling good about the plan, leave it. Good schemes promise between 5-25% return on investment. Anything above that is something worth being cautious about.

5. Never pay for more than a commodity is worth

In wealth creation, negotiation is not a weakness but wisdom. Never pay than a commodity is worth. When you do, you lose economic value.

Always negotiate when doing purchases. This will ensure that you pay what a commodity is worth or even less.

Negotiation is something you practice. Start negotiating even in small deals. Never lose a cent. When you start creating wealth, you will start making big deals like buying a company. Here, poor negotiating can cost you millions.

When making purchases:

·     Do due-diligence. There will always be a cheaper supplier.

·     Start with an extremely low price and then keep adjusting upwards.

·     Never show the other party that you are desperate.

·     Show them that you are informed. Let them know about the competitor’s prices.

·     Never hesitate to walk away if the deal does not favor you.

If you keep paying less than commodities are worth, you will keep gaining economic value. This is critical to wealth creation.

6. Never get content with having just enough

When it comes to wealth creation, never get content with having just enough. Be happy but do not get contented. Successful people always desire to have more. This is what motivates them to keep getting more.

Poor people, on the other hand, just want to have enough to live by. After they have gotten comfortable, they stop pushing for more. This is why the poor remain poor as the rich get richer.

7. Never invest without due diligence

The world of investment is complex and risky at the same time. If you invest without doing your due diligence, the chances of losing everything are very high.

After hearing of an investment idea, give yourself time to do your research. Do not believe it even if it is coming from your friend. They might as well be misled.

8. Avoid getting advice from poor people

If you want to create wealth, seek counsel from successful people. These are people who have already gotten what you dream of. Poor people will only teach you what has not worked in their lives.

This is why any ambitious person needs a mentor. This is a person you look up to. They should be way ahead of you in all aspects of life.

As the saying goes, if a blind man leads another blind man, they will both fall into a ditch. Avoid this at all costs. Only a successful person can coach a person to success.

Read books written by successful people, read their blogs, listen to their videos and audios, ask them questions, read their biographies, and so on. In all these ways, you are getting the secrets of their success. These wealth-creating secrets are invaluable.

9. Never lend what you are not ready to lose.

This is critical if you want to avoid financial losses; only lend what you can lose. Many debtors rarely repay what they owe their creditors unless they are forced to do so.

As an individual, you might not be able to force your family member or friend to pay what they owe you. In this case, lend what you can afford to lose. Chances are that they might never pay you back.

Keep in mind that the first rule of wealth creation is that you should never lose money. To create wealth, you have to keep gaining and avoiding losses as much as possible.