The Law of Accumulation

The Law of Accumulation: how your financial fortune accumulates
slowly over time and then becomes enormous, like a snowball. The Law
of Accumulation: Every great financial achievement is an accumulation
of hundreds of small efforts and sacrifices that no one ever sees or
appreciates.

Develop Discipline
The achievement of financial independence will require a tremendous
number of small efforts on your part. To begin the process of
accumulation, you must be disciplined and persistent. You must keep
at it for a long, long time. Initially, you will see very little
change or difference but gradually, your efforts will begin to bear
fruit. You will begin to pull ahead of your peers. Your finances will
improve and your debts will disappear. Your bank account will grow
and your whole life will improve.

Build Up Momentum
The first corollary of the Law of Accumulation says: "As your savings
accumulate, you develop a momentum that moves you more rapidly toward
your financial goals."

It is hard to get started on a program of financial accumulation, but
once you do get started, you find it easier and easier to keep at it.
The "momentum principle" is one of the great success secrets. This
principle says that it takes tremendous energy to overcome the
initial inertia and resistance to financial accumulation and get
started, but once started, it takes much less energy to keep moving.

Start Slow, Finish Fast
The second corollary of the Law of Accumulation says, "By the yard
it's hard, but inch by inch, anything's a cinch."

When you begin thinking about saving 10 or 20 percent of your
earnings, you will immediately think of all kinds of reasons that it
is not possible. You might be up to your neck in debt. You might be
spending every single penny that you earn today just to keep afloat.

If you do find yourself in this situation, instead of saving 10
percent, begin saving just 1 percent of your earnings in a special
account, which you refuse to touch.

Increase As You Go Along
This small amount will begin to add up at a rate that will surprise
you. As you become comfortable with saving 1 percent, increase your
savings rate to 2 percent, then 3 percent, then 4 percent and 5
percent and so on. Within a year, you will find yourself getting out
of debt and saving 10 percent, 15 percent and even 20 percent of your
earnings without it really affecting your lifestyle.

Action Exercises
Here are two things you can do to apply this law immediately:

First, decide upon your long-term financial goals and then resolve to
work toward them one step at a time. The first steps are the hardest
and you must discipline yourself to avoid backsliding into old habits.

Second, practice the law of accumulation in other parts of your life
as well. Resolve to master a subject one page at a time. Lose extra
pounds one ounce at a time. Learn a language one lesson at a time.
The cumulative effect can be enormous.

By: Brian Tracy