People may have totally different goals for wealth building and wealth may have different meanings to an array of people, regardless of how affluent they are. There's one thing in common that financial planning is the key to the successful wealth building regardless the wealth building strategies they use.
Wealth building starts with financial planning and financial planning begins with goal setting. Without a solid focus and a list of goals, you will never be able to accomplish what you'd like. The first step to wealth building is to come up with a list of goals and set priorities for each goal. You'll still be able to reach your most important goals if something unexpected happens. Goals should be very specific and quantified in numbers if possible.
To help you get started, a basic overview of the paper assets investment landscape goes like this: There are 2 types of investments; ownership investments in which you own part of the asset (a stock is a good example) and loan investments in which you lend money to someone and they pay you interest (a bond is a good example). In many cases, you are looking for growth investments and those are ownership-type investments. (Bonds rarely provide a way to make you wealthy. Rather, they are a way to protect your wealth once you have it). Warren Buffett is a great example of someone who created massive wealth through investing in paper assets.
Real estate is another great way to build wealth. With real estate, you typically buy a property and then make money through selling it eventually for a much higher value than its purchase price and/or becoming a landlord and letting the property. One of the advantages of real estate investing is using the principle of leverage (i.e. a mortgage) to buy an asset that you otherwise couldn't afford. Leverage isn't commonly available in paper assets investing (although you can buy on margin but this can be risky if you don't know what you're doing!).
By developing a plan and sticking to it, you will easily be able to accomplish your goal. For many financial planners, they recommend keeping a journal and a list of your finances. This way you can see what you are saving and why you are saving it. For instance, if you go to the grocery store twice a week, keep the receipts and do the math to consolidate your balance monthly.
This process takes time, I know we all have seen "The Secret" and they did make a point that it doesn't happen overnight. They couldn't tell you how long it will take, but what was the prevalent theme? Keep in good spirits and keep working on what it is that you want. I believe this is the greatest and wisest piece of advice to give anyone who truly wants more in life. Let us get real. You want to accomplish something great, start moving into that direction and it will happen, if you apply the fundamental's of business and manage your money correctly. A wealth building plan is not difficult to set up, I can teach in a day! Not all the details but general overview. If you want to know the truth it does take detailed planning. I know a lot of people don't like to hear that. It is the truth, you have to take it one step at a time. That is what they have gone over in "The Secret" by telling you to "Start" by writing down the things that you want. Can you accelerate the process? Yes and No. Yes there may be some strategies that will help you get to your goals faster, and no there are simply some things that just take time.
Wealth building starts with financial planning and financial planning begins with goal setting. Without a solid focus and a list of goals, you will never be able to accomplish what you'd like. The first step to wealth building is to come up with a list of goals and set priorities for each goal. You'll still be able to reach your most important goals if something unexpected happens. Goals should be very specific and quantified in numbers if possible.
To help you get started, a basic overview of the paper assets investment landscape goes like this: There are 2 types of investments; ownership investments in which you own part of the asset (a stock is a good example) and loan investments in which you lend money to someone and they pay you interest (a bond is a good example). In many cases, you are looking for growth investments and those are ownership-type investments. (Bonds rarely provide a way to make you wealthy. Rather, they are a way to protect your wealth once you have it). Warren Buffett is a great example of someone who created massive wealth through investing in paper assets.
Real estate is another great way to build wealth. With real estate, you typically buy a property and then make money through selling it eventually for a much higher value than its purchase price and/or becoming a landlord and letting the property. One of the advantages of real estate investing is using the principle of leverage (i.e. a mortgage) to buy an asset that you otherwise couldn't afford. Leverage isn't commonly available in paper assets investing (although you can buy on margin but this can be risky if you don't know what you're doing!).
By developing a plan and sticking to it, you will easily be able to accomplish your goal. For many financial planners, they recommend keeping a journal and a list of your finances. This way you can see what you are saving and why you are saving it. For instance, if you go to the grocery store twice a week, keep the receipts and do the math to consolidate your balance monthly.
This process takes time, I know we all have seen "The Secret" and they did make a point that it doesn't happen overnight. They couldn't tell you how long it will take, but what was the prevalent theme? Keep in good spirits and keep working on what it is that you want. I believe this is the greatest and wisest piece of advice to give anyone who truly wants more in life. Let us get real. You want to accomplish something great, start moving into that direction and it will happen, if you apply the fundamental's of business and manage your money correctly. A wealth building plan is not difficult to set up, I can teach in a day! Not all the details but general overview. If you want to know the truth it does take detailed planning. I know a lot of people don't like to hear that. It is the truth, you have to take it one step at a time. That is what they have gone over in "The Secret" by telling you to "Start" by writing down the things that you want. Can you accelerate the process? Yes and No. Yes there may be some strategies that will help you get to your goals faster, and no there are simply some things that just take time.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Adding A Gold Panda Coin To Your Collection You have full permission to reprint this article provided this box is kept unchanged.
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