We will start off in this lesson reiterating what we went over in previous lessons. ALWAYS PAY YOURSELF 10% FIRST! Then use that capital to leverage yourself to wealth.

But Wait! We have to ask, if people followed these guidelines,, "why aren't there more millionaires?" Come on, you know most of the answers.

1.People are not willing to set aside 10% of their annual pay for investments.

2.Many who do set this amount aside do not invest it for high enough return.

3.Other will spend their profits or "eat their children."

4.Still Others have not developed the faith necessary to apply leverage or obtain OPM.

It is the sum total of all these abilities which we call "financial maturity." Overcoming this stagnant attitude again demands self-control, a responsible standard of living and proper credit practices. Then you must have a plan and muster the discipline necessary to follow it.

We mentioned in a previous lesson that liabilities frequently increase as wealth grows. If you look at the total liabilities incurred during the tenth year, it would make average person sit down and gasp. Now set those liabilities against the worth of your total holdings to realize just how far in the black you really are. The resulting figure can be compared to the gross earnings shone on the balance sheet to a growing company. While liabilities have increased at a steady rate, the assets have grown even faster, resulting in a rapidly increasing net worth.

Make money by multiplication.

Actually, all great Americans -- and foreign – financiers increased their wealth by the multiplication system. One of the world's richest men, who made his money in shipping, was once asked by s financial reporter: "How could you earn so much so fast?" The billionaire reflected for a moment, then said, "By the using of other people's money." Another man, one of the world's richest,, gave the same account. But he added some excellent advice to would-be millionaires. "Always keep your overhead low," he counseled.

The low overhead actually applies to any type of enterprise. In this day and age, with a laptop computer, a office could be anywhere. One of the best-known wildcatters admits that he worked out of a small trailer for years. A future department store tycoon resisted the hiring of new personnel – and the building of additional branch stores – until his business was well underway. Sm of America's greatest insurance salesmen started small, and kept their operation small until they could finally afford major expenses.

So as you invest $1,000.00, $2,000.00 $3,000.00 ask yourself honestly:

Do I need this large an office?

Do I require a full-time secretary? Couldn't a part-time do the job?

Could a telephone answering service take care of my business needs?

Conserve money and reinvest.

Likewise, many future millionaires made do with old office equipment and furnishings instead of splurging on new ones. These men knew that they had to make some sacrifices to become financially independent. They realized the value of thrift. They resist increased personal expenses until they have earned a good deal of money. Instead of buying the speed boat with professional profits, they buy more real estate or mutual funds, or blue-chip shares. In place of a Hawaiian vacation, these smart investors stay home and put the money they would have spent into their multiplying money machines. Only their financial goal counts; the tropical, palm-fronted beaches just have to wait for retirement.

Even large corporations must analyze every penny spent. A large Colorado resort complex. For example, found that it had made a profit of $5,350.00 at the end of tourist season. The stockholders clamored for dividends. To everyone's surprise, the corporation president resisted the public's demands. Instead of paying out the profits, he invested the $5,350.00 into new land and machinery. This decision doubled his profits within twelve months. The system has been adopted by many other companies and by smart, forward-looking individuals. More than eighty years ago, an English writer said it well for us. "All the money in the world is no use to a man or his country if he spends it s fast as he makes it. All that is left is his bills and the reputation for being a fool, " wrote Rudyard Kipling.

According to the American Banker's Association, not enough people pursue the savings habit. Those who do save and then invest money will inevitably gain their financial independence. Some people even do better than that. Take the case of oil billionaire H. L. Hunt, for instance.

Hunt was one of eight children. His parents had great financial problems, but the future oil man managed to save every cent he could from his livelihood as a cowboy and lumberjack. When he was 21 years old, he had saved enough to buy some Louisiana farm land. He bought and sold land, always investing the profits before he went into the oil business. He did so on OPM, by acquiring leases on credit. One of these oil leases turned into a gusher. H. L. Hunt and the rest is history.

Now you have seen how applying your 10% with OPM becomes an easy task. The heart of any program is not in the program itself, it's in your willingness to implement it. The program is not worth anything if there is no participation.

Thank you for your attention. Next chapter will deal with taking money and putting it into action.

Happy Trails