Who doesn't dream of marching into their boss' office one day and resigning without caring about the financial repercussions? Well, you can only do so if you have acquired sufficient assets (wealth) through which you can generate a future income to replace your current earned income. By the way, as a rule of thumb I don't recommend you hand in your resignation unless you have at least 1 and ideally 2 years living expenses put away in liquid assets. Simply put, to become wealthy over time you basically need to make, save and invest money wisely. The smarter you are at doing this the faster you become wealthy. Assuming you've read my other articles on How to Get Rich (the making of and management of money) then you are ready to look at the 3 most common wealth building strategies of the super wealthy.
There is always opportunity in crisis. On a personal level this is a great time for re-assessing your life goals and values. From a wealth building perspective, apart from snapping up distressed assets at bargain-basement prices, possibly the true financial opportunity is something less obvious. Perhaps it's the opportunity we have to realign our thinking regarding wealth and how we build it. Here's an outline of 4 steps you could take in order to start rebuilding your wealth.
Some people boast as to how much money they made from some venture, this makes others feel bad, that they did not get the piece of the pie. Wealth is energy, people will either vibrate with it or not. You can build your own empire, provided that you have the end in mind. You want a million dollar lifestyle then you must build it. How? There is only one way and that is to keep the main thing (your business) the main thing (not be distracted by other things or claims).
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!).
You have heard over and over again, build a business that is the road to wealth and independence. Let me mention something here. There are those who have made a living at victimizing you and then telling you, the failure is you not the business. The truth is that your failure may be part of it, the other most likely is the lack of support or the "lies' you are being fed. Most of these guru's in marketing did not make their fortunes overnight. It took some time and a lot of thought, into their campaigns and promotions. Most of them are based on how they can take advantage of you. More on this later.
So, you're keeping winning investments or cash them in, weeding out the losers from your portfolio and realigning your asset allocation. What next? Well, now it's time to focus on increasing your returns and growing your investment portfolio. Whilst paying down debt, especially what I call 'bad debt', is hugely important, equally so is re-building your wealth with sound and advantageous use of 'good debt'. Focusing on building wealth is critical so that the focus isn't on debt reduction only. Apart from hunting down real estate or other business opportunities in your state or country you really must think and act globally. You simply can't afford to rely on any one economy so don't be afraid to seek out opportunities in foreign territories and emerging markets. Diversification by both asset type (stock, real estate, bonds etc) and geography has never been more appropriate. So, rather than ever waiting for markets to change you can take charge of your own financial bailout and re-build your wealth. Re-assess and re-balance your portfolio. Rethink your wealth building strategy and then focus on growing your wealth.
There is always opportunity in crisis. On a personal level this is a great time for re-assessing your life goals and values. From a wealth building perspective, apart from snapping up distressed assets at bargain-basement prices, possibly the true financial opportunity is something less obvious. Perhaps it's the opportunity we have to realign our thinking regarding wealth and how we build it. Here's an outline of 4 steps you could take in order to start rebuilding your wealth.
Some people boast as to how much money they made from some venture, this makes others feel bad, that they did not get the piece of the pie. Wealth is energy, people will either vibrate with it or not. You can build your own empire, provided that you have the end in mind. You want a million dollar lifestyle then you must build it. How? There is only one way and that is to keep the main thing (your business) the main thing (not be distracted by other things or claims).
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!).
You have heard over and over again, build a business that is the road to wealth and independence. Let me mention something here. There are those who have made a living at victimizing you and then telling you, the failure is you not the business. The truth is that your failure may be part of it, the other most likely is the lack of support or the "lies' you are being fed. Most of these guru's in marketing did not make their fortunes overnight. It took some time and a lot of thought, into their campaigns and promotions. Most of them are based on how they can take advantage of you. More on this later.
So, you're keeping winning investments or cash them in, weeding out the losers from your portfolio and realigning your asset allocation. What next? Well, now it's time to focus on increasing your returns and growing your investment portfolio. Whilst paying down debt, especially what I call 'bad debt', is hugely important, equally so is re-building your wealth with sound and advantageous use of 'good debt'. Focusing on building wealth is critical so that the focus isn't on debt reduction only. Apart from hunting down real estate or other business opportunities in your state or country you really must think and act globally. You simply can't afford to rely on any one economy so don't be afraid to seek out opportunities in foreign territories and emerging markets. Diversification by both asset type (stock, real estate, bonds etc) and geography has never been more appropriate. So, rather than ever waiting for markets to change you can take charge of your own financial bailout and re-build your wealth. Re-assess and re-balance your portfolio. Rethink your wealth building strategy and then focus on growing your wealth.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Tactics To Improve Your Personal Finance Management You have full permission to reprint this article provided this box is kept unchanged.
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