Wealth building is still a mystery to many. This is the age where money is plentiful but wealth is frustratingly elusive to most. But there is an elite group of the very wealthy who have found their secrets to success.
Investing in "paper assets" is a great way to start building wealth. It teaches you the principals of money management, capital, rates of returns, risk etc. You can invest in stocks, bonds, mutual funds, commodities, and foreign exchange ("Forex"). Each of these options presents various levels of risk and reward and requires thorough research before you start. You don't necessarily have to read the Wall Street Journal daily or subscribe to Fortune magazine in order to be a good stock investor. But you should at least get trained by an expert or have access to wholly independent financial advice from an experienced investor. 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!).
Now, I can most assuredly tell you that growing up a country boy and being thrown into the world of high finance and international business is about as much a culture shock as jumping into a stormy sea without learning to swim. It was terrifying at first. It was sink or swim. And without the strong helping hands and guidance of my mentors I would most certainly have been shark food.
Starting, or owning a business is another common wealth-building strategy. Starting a business doesn't always make you really wealthy right away. It takes time and energy to build the income of a business and its capital value, but it can make you wealthy over time if managed effectively. Therefore, if you have previous experience of running a business it can sometime makes more sense to buy an existing business and simply run it better. Want to know how to build wealth starting or owning a business? Find something that you love to do and that solves the needs of a target market. Then sell that product or service through relentless marketing and sales. Create efficient systems to sell more, more often. And work towards growing the value of your business by making it less dependent on you so that you can eventually sell it to a new owner. Bill Gates is a great example of someone who created serious wealth by starting a business.
Once you have a goal, created a plan, and disciplined to execute the plan, the strategies and the techniques you learned from wealth building seminars or real estate investment seminars would take the course of your wealth building further. You can learn what to avoid and what to try out. You'll exchange the ideas with the people who are on the same journey, and share the frustration and your joy with those who've achieved their goals.
Investing in "paper assets" is a great way to start building wealth. It teaches you the principals of money management, capital, rates of returns, risk etc. You can invest in stocks, bonds, mutual funds, commodities, and foreign exchange ("Forex"). Each of these options presents various levels of risk and reward and requires thorough research before you start. You don't necessarily have to read the Wall Street Journal daily or subscribe to Fortune magazine in order to be a good stock investor. But you should at least get trained by an expert or have access to wholly independent financial advice from an experienced investor. 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!).
Now, I can most assuredly tell you that growing up a country boy and being thrown into the world of high finance and international business is about as much a culture shock as jumping into a stormy sea without learning to swim. It was terrifying at first. It was sink or swim. And without the strong helping hands and guidance of my mentors I would most certainly have been shark food.
Starting, or owning a business is another common wealth-building strategy. Starting a business doesn't always make you really wealthy right away. It takes time and energy to build the income of a business and its capital value, but it can make you wealthy over time if managed effectively. Therefore, if you have previous experience of running a business it can sometime makes more sense to buy an existing business and simply run it better. Want to know how to build wealth starting or owning a business? Find something that you love to do and that solves the needs of a target market. Then sell that product or service through relentless marketing and sales. Create efficient systems to sell more, more often. And work towards growing the value of your business by making it less dependent on you so that you can eventually sell it to a new owner. Bill Gates is a great example of someone who created serious wealth by starting a business.
Once you have a goal, created a plan, and disciplined to execute the plan, the strategies and the techniques you learned from wealth building seminars or real estate investment seminars would take the course of your wealth building further. You can learn what to avoid and what to try out. You'll exchange the ideas with the people who are on the same journey, and share the frustration and your joy with those who've achieved their goals.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Finding The Right Asset Protection Advisors You have full permission to reprint this article provided this box is kept unchanged.