The Rules of Wealth

by Richard Templar

  RULE 69

  Don’t just read this – do something

  Time to shift some weight off that backside I’m afraid and actually do something. Reading this book is a start but it’ll count for nothing unless you actually take action. You’ve probably thought to yourself while reading this book ‘Oh I know that!’ or ‘That’s so obvious...’ OK, you know it, but have you actually done something about it? Sure, parts are obvious but does that mean you’ve got it sorted? For most of us there is a huge gap between what we know and what we do. There’s no point just reading this, you have to act on whatever it spurs you to think would be a good idea.

  Let’s take it as slowly as you want. I do appreciate that changing direction is often hard; developing new character traits can be painful. Begin by changing what you watch and what you read. Begin by simply reading/watching a bit of business news. Begin by changing your awareness of what money is all about and how our money myths influence each and every interaction we have with it.

  CHANGING DIRECTION IS

  OFTEN HARD; DEVELOPING

  NEW CHARACTER TRAITS

  CAN BE PAINFUL

  The way to change our mindset is to change the way we behave and the way we conduct ourselves.

  Watch how you talk, and think, about money. Do you praise its many virtues or denigrate it as something evil and negative? If you begin to talk it up you’ll be surprised how quickly it materializes.

  Watch how you walk. Do you slouch and give off an air of resigned acceptance? Or are you upright and confident and looking as if you are hungry for change? (See also Rule 24.)

  Watch your overall image too. Plead poverty all the time and people will assume you are poor and act accordingly. The best thing to do is to ‘act as if’ you are already rich and people will adjust their perception of you and reaction to you accordingly.

  Many people will fall by the wayside, despite claiming they want to be rich or richer, but they will do so not from a lack of desire. Instead it will be from a lack of motivation, a lack of doing something. Start now, right now, today, immediately.

  Once you’ve got a bit of money behind you, the whole thing gets a bit easier. Money begets money. You won’t pick up a lot of bargains at an antiques auction for £50. But there’s a hell of a lot more if you’ve got £5000. It’s that first million that is difficult – ho ho. But seriously, once you have started to move towards prosperity it isn’t a good idea to sit back and start counting your loot. It’ll disappear faster that way than by any other means. Instead you’ve got to get slicker and quicker, stay on your toes, be even busier and more focused and definitely don’t take your eye off the ball.

  As you start to get richer, you might need to start gathering a few advisers around you, people you can trust and, most importantly, listen to. The reason? Because as your investments and capital start to grow, you will need advice and help to make things grow even more. Obviously you can listen, but you will need to make the final decisions about what you are going to do.

  Not sitting back on your laurels means you have to be on the lookout for hidden opportunities to take your prosperity further. You’ve got to stay abreast of current developments, play your hunches, understand the market, know what you’ve got and what you can spend/invest/save.

  Now is the time to start stepping up how opportunistic you can be – thinking laterally, not following the herd, being creative and innovative – that sort of thing. There’s no point in doing what everyone else does if you want to make some serious money...

  RULE 70

  Carry out a finance health check regularly

  It is essential if you are going to increase your prosperity that you maintain a healthy awareness of your bank balance. You should be carrying out a finance health check on a regular basis. I think, personally, it should be weekly. Of course, you are free to do it as often as you want and if that means monthly or even longer, then that is entirely up to you but I wouldn’t recommend that you leave it too long.

  My observation is that the tighter a grip you have on the pulse of your financial life:

  the quicker you can react to changes

  the more information you have to make decisions

  the less chance there is for things to go drastically wrong without you noticing

  the better a focus – and thus interest – you’ll have in your finances.

  Sorry, but you do have to be disciplined about this. You have to have a regular time when you sit down and:

  carry out a bank reconciliation

  list your creditors and debtors

  check credit card balances against receipts

  check outstanding payments – the ones that you’ve authorized that haven’t yet arrived in the bank

  check what future income you have and what major expenses you might have looming on the horizon

  check your standing orders

  check pensions contributions

  check investments

  check any loans

  check any overdrafts etc. (I know, I know, I have said not to have any but you are human).

  If you don’t do this stuff money will leak away. Forgetting a debt doesn’t pay it.

  You’ve got to be disciplined and have a routine – every Monday morning without fail. Yep, even when it’s sunny outside, even on holiday, even when you’re feeling a bit off-colour, even when there are more exciting things going on. Because if this doesn’t excite you, then you’re not going to make it I’m afraid.

  Personally, I think you should know what you are earning day by day. And you should know what big outgoings you might face in the next 12 months and that does include a most often forgotten one – the tax bill. Watch that little baby like a hawk and don’t ever take your eyes off that ball because it will get you every time.

  FORGETTING A DEBT

  DOESN’T PAY IT

  RULE 71

  Get some money mentors

  When not writing books, I do have a proper job. I have several in fact, which all involve running companies. I’m no fool when it comes to knowledge. I know there are things I should know that I don’t know. And there must be millions of things I don’t even know I don’t know. My solution is to use other people’s knowledge to supplement my own deficits. I have money mentors. In fact I have mentors for all sorts of situations but we’ll stick to the money ones for the moment.

  Now why should you use money mentors?

  They bring a wider range of experience to the table.

  They make you present your ideas in a clear and concise format – which makes you think long and hard about what you are doing.

  They will make you justify what you are doing – this makes it much harder for you to go off like a loose cannon.

  They are on tap to provide answers, advice, as a sounding platform, a reining-in service and a ‘Have you thought it through?’ facility.

  They will individually keep their ear to the ground so you can benefit from their collective knowledge (a bit like a news-gathering service).

  They are independent and so will have no vested interest in what you do as competition.

  They are independent and thus will be loyal, supportive and on your team.

  Many successful entrepreneurs use mentors when they start out in business. They find somebody who has been successful in starting and running their own businesses, and they ask if they would be prepared to offer guidance and advice (and sometimes contacts and more) to the new entrepreneur as they start out. The vast majority of experienced businesspeople approached will say yes – it’s fun for them to pass on their expertise. They enjoy it.

  Yes, but I have questions, I hear you say. Fire away.

  What sort of mentor do I need?

  Where do I find them?

  What’s it going to cost me?

  Can I ignore them if I don’t agree with their advice?

  For a money mentor you need people who have proved their financial acumen by making a bit of money themselves – and not
by inheritance or lottery winnings. You find them by looking around you. Anyone you admire who has been successful – approach them – they may well be flattered.

  It shouldn’t cost you more than about four decent lunches a year. You take them out to lunch. In return they give you advice, information, suggestions, restraint, support and encouragement.

  And can you ignore what they say if you don’t like it? Yes, of course you can. I ignored mine once. Just the once. It cost me a lot to ignore them. I publicly apologized to them and wouldn’t ever ignore them again.

  MONEY MENTORS ARE

  PEOPLE WHO HAVE

  PROVED THEIR FINANCIAL

  ACUMEN BY MAKING A BIT OF

  MONEY THEMSELVES

  RULE 72

  Play your hunches

  Have a hunch. Listen to your heart. Follow your intuition. Listen to your inner voice. Have gut feeling. Have an inkling. These are all saying the same thing. There are times when:

  you know something stinks

  you know when something is absolutely right

  you need to nod your head and believe in yourself.

  Of course having a hunch, following a hunch and going off like a loose cannon are not all the same thing.

  There is a format to this intuition lark and it is a little bit more sensible than you’d think:

  have the hunch

  do your research and see if your hunch is worth following – it usually is but best to just check first

  prepare a well-worked proposal to present to your money mentors

  present

  listen and act on their advice.

  And there is no point whingeing, ‘But I had this really brilliant hunch!’ If you can’t back up your hunch with facts and figures then it is just a stab in the dark. A hunch is a sudden flash of inspiration, a moment of sublime intuition, a clever and brilliant realization. And it can be justified with facts and figures. Just because the inspiration was a hunch doesn’t mean you don’t have to justify it and research it. You still need to prepare some figures and develop a plan. Having a hunch doesn’t let you off being sensible and practical and realistic.

  OF COURSE HAVING A

  HUNCH, FOLLOWING A

  HUNCH AND GOING OFF

  LIKE A LOOSE CANNON ARE

  NOT ALL THE SAME THING

  Lots of wealthy people got there by having that one truly brilliant moment of inspiration. But they then turned that inspiration into perspiration (sorry) and worked their guts out to make their dream come true. And I bet loads of people said to them, ‘But you’re so lucky’. Bah. No such thing as luck. But there is a hunch followed by hard work.

  RULE 73

  Don’t sit back

  There’s a saying that ‘Nothing wilts faster than laurels that have been rested upon’. It’s very true. There is a temptation once we have made a bit of money, when an investment has worked out, or it seems to be all paying off, to sit back and relax. Yes, we can. But we don’t want to. Now is the time to speed up a gear or two, put more irons in the fire. Now is the time to look around and work out our next plan of attack. Now is the time to strike, capitalize, consolidate. Now is not the time to take your eye off the ball.

  We can all stir from the swamp and then settle back into the mud. But the really prosperous keep struggling until they are completely free of the slime forever. If you take a day off, the slide begins and will, inexorably, continue. And the next effort will be even harder. I know, I’ve been there.

  So redouble your efforts. Rekindle the enthusiasm. Relight the fires of desire and let’s get back to work.

  NOW IS THE TIME TO STRIKE,

  CAPITALIZE, CONSOLIDATE

  You mustn’t sit back. The wealthy don’t take unscheduled days out, tea breaks, lunch breaks, holidays. They keep their nose to the grindstone, shoulder to the wheel, ear to the ground, back to the wall, finger on the pulse, iron in the fire, fire in their belly and hand on the tiller. Wow! Tall order. They work harder and enjoy greater rewards – and get told how lucky they are.

  You’ve got to keep on doing whatever it was that made you make it. If it’s a cash cow, ride that baby until it dies under you. If it was a one-off brainwave, have another. If it was sheer hard work, keep going. If you’ve found a successful formula, make some more. But whatever you do don’t turn off the tap unless it’s run dry. And even then keep it turned on just in case.

  Remember, don’t get clever. Don’t think you know it all. Keep using those money mentors. Keep working harder than anyone around you. Keep it under your hat and keep at it.

  But don’t forget how you got to where you are – location, method, plan, mission. Remember the ‘Don’t fiddle’ rule and don’t change anything until you are sure it will only improve results and not make the boat sink.

  RULE 74

  Get someone to do the stuff you can’t

  I have money mentors because there is loads of stuff to do with business and making money that I know nothing about. There are also loads of things which have to be done which I don’t know how to do. I could learn, but it isn’t where my talents lie. So why go learning how to do things when there are eminently more suitable people out there who can do them? Do what you are good at and get others to do the things you can’t. Simple. Pick really good people, and let them get on with the job of making you really prosperous.

  Now there are ten rules to making sure you (a) get the right people and (b) keep the right people.

  Know exactly what it is you want done and who you want to do it.

  Be very clear about what you want them to do for you and how much you will pay and what guidelines you will give them.

  Care about them – they are human and mustn’t become a mere tool.

  Keep them informed and motivated – inspire loyalty.

  Tell them your long-term strategy – they too have a stake in your/their future.

  If they muck up – and they will from time to time, we all do (‘Even you, Mr Templar?’ Well, maybe not me) – then correct it and move on. Forgiveness is a good thing.

  Praise them constantly – nothing inspires more than praise (oh, yes, and money of course).

  Set realistic targets but don’t expect the impossible.

  Set a good example – be someone they can respect and look up to (no one likes working for a jerk) – and set high standards and live up to them yourself.

  Remember you’re the boss, not their friend. Try to maintain dignity, distance and authority.

  That should do it. There may be other things you will try, adapt, implement and use. All this stuff is adaptable and entirely up to you. Just make sure you treat your people well and have fun. Don’t be an insensitive bossy boss – as if!

  At the moment I have a wonderful accounts person. She sighs a lot as I’m always trying to find ways to ensure I’m not paying more tax than I need to – don’t we all? But all I do is ask her questions. The rest I leave entirely up to her and the relationship works. Apart from the sighing that is.

  PICK REALLY GOOD

  PEOPLE AND LET THEM

  GET ON WITH MAKING YOU

  REALLY PROSPEROUS

  RULE 75

  Know yourself – solo, duo or team player

  If you are going to change direction – in this case to prosperity from wherever it is you are now – then you need to know:

  your strengths and weaknesses

  what you are good at – and bad at obviously (and this isn’t the same as strengths and weaknesses).

  For example, I’m good at broad strokes, big picture stuff but I’m not the greatest when it comes to detail.

  Get what I’m on about? You just have to know yourself pretty well and then you will be confident in the areas you are good at, can brush up in areas you are weak, can trade on your strengths and get someone else to do all the stuff you are bad at (or haven’t yet learned or researched or studied).

  And then you’ve got to know if you are at your best working as part of a partnership, a te
am or going it alone. Personally I always need the steadying hand of a partner to curb some of my business excesses – an overwhelming tendency to shoot from the hip, be a bit undiplomatic at times, to rush headlong into things, to spend money wastefully on advertising and not to attend to the detail. I am, however, really bad in a team of more than two. So if a business opportunity comes up that requires teamwork I know I can turn it down or tailor it in some way, because I know if I say yes, I will make a pig’s ear of it. If, however, it requires a partnership, I’m much more likely to be interested.

  I ALWAYS NEED THE

  STEADYING HAND OF A

  PARTNER TO CURB SOME

  OF MY BUSINESS EXCESSES

  I am also good working alone. I make decisions easily (not always the right ones but at least I don’t prevaricate), I am happy in my own company for long periods and don’t need to bounce ideas off anyone to make them seem real. I can travel well alone and can speak up for myself. See what I mean about knowing yourself?

  You have to do this exercise if you are to forge ahead with the rest of the moneymakers. Questions to ask:

  Am I good on my own or do I need other people around me?