The Wealth Dragon Way

The Why, the When and the How to Become Infinitely Wealthy

John Lee, Vincent Wong

• Publisher: Wiley
• Year: 2015
• Print ISBN: 9781119077831
• eBook ISBN: 9781119077848
• Edition: 1
• Topic: Business
• Subtopic: Finance
• Index: Business

Stop procrastinating and become financially free, by building asset-based wealth and creating passive income.

The Wealth Dragon Way: The Why, the When and the How to Become Financially Free is a practical guide to becoming financially free through building asset-based wealth and creating passive income. Part motivational, part informational, this guide will change your whole perspective on wealth and your personal growth potential. The book discusses both moral and monetary wealth, and looks at how we are easily misled and influenced by media-driven myths surrounding money, debunking notions such as the idea that there is no truly moral way to become wealthy, or the belief that the state will provide for us in retirement, and more. You'll discover new truths surrounding the subject of wealth, and get to the root of your own procrastination over planning for your financial future. You will learn how to tackle your fears and overcome the issues holding you back. You will also read real-life examples of how two property entrepreneurs built their significant portfolios using alternative strategies such as using lease options, and structuring and securing deals at below market value. Along the way, you'll learn what it means to become a Wealth Dragon, and the key principles to live by if you're ready to work towards achieving real financial freedom.

You are far more likely to achieve personal wealth if you are one hundred percent clear as to why you want it. This book explores the psychology of our relationship with money and offers a practical advice for anyone who is determined to meet their goals and realize their dreams.

• Bust the myths surrounding the subject of wealth
• Start taking control of your financial future
• Adopt the key Wealth Dragon principles
• Discover your full potential for financial and personal growth

The importance of taking control of your financial future cannot be overstated, especially in these economically uncertain times. Whether you want to quit the rat race, build some assets as security, or develop a branded business that will provide you with a passive income, The Wealth Dragon Way is your guide to building wealth and becoming financially free.

PART I
THE WHY

The first part of this book looks at why you want to be wealthy as well as what we call your moral obligation to become as wealthy as you can. People are often surprised when we say this but we honestly believe that you have a duty to become as wealthy as possible. The only thing that stops people from achieving everything they are capable of is fear. We have a whole chapter on fear in Part II, so before we discuss what fuels our fears in depth and examine all the excuses you make for why you can’t or shouldn’t create limitless wealth, let’s look at all the reasons why you can . . . and should.

CHAPTER 1
What Is Wealth?

When I was young I thought that money was the most important thing in life.

Now that I am old, I know that it is.

—Oscar Wilde

Before we determine what the definition of wealth is, let's discuss what it definitely isn't. Monetary wealth is not a pile of cash sitting in a bank account. Even if you have money in a savings account, the amount you earn in interest is not likely to be anything to get wildly excited about. And if you find the need to dip into it to supplement your monthly outgoings, and you're not constantly topping it up, it will be depleted very quickly.

No, cash in the bank is the very last thing that makes us wealthy.

So is your wealth simply whatever you own in assets? Well, only those that are appreciable assets, such as your house, your art collection and your business (potentially) should be counted. But you still have to subtract your liabilities to come up with a figure that is your net worth.

What is your net worth?

Write down the value of all your assets (everything you own), then write down the total amount of all your liabilities (everything you owe). The difference between these figures is your net worth.

Many people think they are wealthy because they have a big bank balance and some equity in a property, but when they subtract their mortgage, their car loans, their credit cards and other debts, they realize that they are effectively broke.

Don't get depressed if you have a negative net worth at the moment. You may technically be “worthless” at the moment, but there is plenty you can do (as you will discover by the time you finish reading this book) to change that. Also, many people live in a state of negative worth. We've been sucked into a culture of carrying debt; we are the second generation of “have it all now, pay for it later.” Our grandparents would be horrified at how much debt we get into these days!

But there is another way, a better way, to live. There is a way of massively increasing your net worth. You can see it if you just look at the equation above. All you need to do is increase your assets and reduce your debts. The more appreciable assets you have, the easier this becomes.

So monetary wealth is a fairly straightforward measurement. But that is only one type of wealth that we are talking about here. We also place a huge value on what you are worth to the world in terms of your attitude and feelings. We are talking about your moral wealth.

How can we really define and measure moral wealth?

While we all have slightly different values and beliefs, there is a general code of ethics that most of us try to live by. Abiding by the law and not stealing or harming others is obviously the basic level of a moral code. Beyond this, the level at which individuals show compassion and generosity towards others, the depth of their integrity (honesty, trustworthiness, and reliability), and any other attributes they possess, and actions they take that contribute to enriching humanity, are all factors that count towards determining how morally wealthy they are.

This is great news for people who realize they are technically worthless in monetary terms. At least they can feel wealthy in some respect! In fact, increasing their moral wealth is the way some people contend with having little monetary wealth. However, the more you increase your moral wealth, the more you should be inspired to increase your monetary wealth, so that you can literally do more with your great moral wealth!

These two types of wealth—monetary wealth and moral wealth—are very much related, even though they appear very different and tend to produce different feelings in people. High moral wealth generally makes people feel positive and good about their purpose in the world. High monetary wealth makes people feel empowered. So it follows that a person with high moral wealth should want high monetary wealth in order to do more good in the world.

We will come on to explore the relationship between monetary and moral wealth more closely in the next chapter. The point is, people can be monetarily wealthy, and they can be morally wealthy; the two are technically independent of each other, even though they can have a strong relationship. Of course, conversely, people can be monetarily worthless and/or morally worthless.

When people have low or negative moral wealth, this can lead to immoral behaviour. This may cause them to want to harm others, and even sometimes themselves. The most dangerous type of person is one with negative moral wealth and high monetary wealth. Money often gives these people ways of covering their tracks and enables them to pay for expert legal defence to get them off serious charges. After a highly publicized and televised civil trial, O. J. Simpson was acquitted of murder. In a private lawsuit he was later held accountable for damages relating to the wrongful deaths of his victims, suggesting that the evidence against him pointed to his guilt. He is now in prison for a totally different crime; he is serving 33 years for robbery. The point is, how was he acquitted in one trial and found guilty in another? Presumably it had something to do with his ability to pay for some of the best and most expensive defence lawyers. A person of more limited means might have had a different outcome because he or she wouldn't have had such a good defence team. And what about the case of Dominique Strauss-Kahn, the former head of the International Monetary Fund, who was accused of sexually assaulting a chambermaid in a hotel in New York? He was acquitted of the charges. Would a different man, a less high-profile man, with limited means and a weaker legal team, also have been acquitted? It's interesting to ask these questions.

It seems that it does not necessarily follow that high monetary wealth leads to high moral wealth.

Neither does high moral wealth necessarily lead to high monetary wealth.

In their day, great artists and literary figures such as Van Gogh and Shakespeare were often broke. They had high intangible value because they were so talented and were producing works of art. But these works did not become extremely valuable until after their creators' deaths. When they were alive these people had high moral wealth but low monetary wealth—although one could easily argue that Van Gogh's moral wealth was questionable because he caused himself great physical harm in cutting off his own ear. He was quite possibly depressed or suffering from some form of mental illness. Perhaps he was unaware of his talents. Perhaps if someone had helped him raise his self-worth, his moral wealth, he may have gone out and sold more paintings and become a monetarily wealthier person. J. K. Rowling clearly had enough self-worth to believe she had something of value when she submitted her Harry Potter series to publishers. Despite being repeatedly turned down, she never gave up. Now she has monetary wealth (intellectual property is a highly valuable asset, often appreciable and also generating income from royalties and licenses) and we have the wealth of her Harry Potter stories. Imagine if she had buried them in a suitcase and died before they were ever discovered…both she—and the world for a certain length of time—would have been deprived of a great deal of wealth!

CHAPTER 2
The Moral Obligation to Be Wealthy

You were born to win, but to be a winner you must plan to win, prepare to win, and expect to win.

—Zig Ziglar

Ultimately, what we are trying to do here is take a holistic approach to what...

Table of contents

• Cover
• Title page
• Copyright
• Dedication
• Preface
• Acknowledgments
• About the Authors
• Introduction: The Story of Wealth Dragons
• PART I THE WHY
• PART II THE WHEN
• PART III THE HOW
• Conclusion: The Now
• Final Word
• Index
• EULA