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.
How do people become wealthy? Some people inherit money, some people build their own business, some have a lucky break and win the lottery - but for most of us building wealth is a slow process of investing time and money at getting it right. Most people are of the opinion that wealth = money and without both there lives will be of a less importance. But wealth is actually more than money. There are three important components to wealth with each component been the fundamentals that are required to achieve success. Wealth, Health and Wisdom are the three categories required to start the road to building wealth.
Wisdom is knowledge and there is plenty of information available that will help you choose in what direction to invest. But is there too much knowledge available and does that detract from the overall goal of investing to make money.
If one of your goals is to have one million dollars of net worth by retirement one option is to put $300 a month into your 401k plan and choose S&P 500 stock market index fund. If you're 35 years old now and plan to retire at age of 65, you'll gave exactly one million dollars 30 years from now assuming the SP index repeat itself in performance at the rate of 10% return.
My early mentors then were in my life situation, my maternal grandmother who was essentially my mother and my paternal grandfather who played the role of father to me. Grandmother taught me to give aid to people to help them get on their feet. She would never allow a child to go hungry; even the lost children that lived on the streets in the days of my childhood. Grandfather taught me the importance of building the family. The family is a great part of your wealth building foundation. He made sure I was introduced to the skills of working well in any situation. He gave me the knowledge of the ancient world; the old texts and philosophies of building wealth.
If you are building wealth for the short term, think about your own timeline and begin with a starting date but more importantly have a desired end date. On the other hand long term builders may not have an end date as they are planning for their retirement. For this type of person the end date never comes because in retirement you are always building on the wealth you made over the past years.
How do people become wealthy? Some people inherit money, some people build their own business, some have a lucky break and win the lottery - but for most of us building wealth is a slow process of investing time and money at getting it right. Most people are of the opinion that wealth = money and without both there lives will be of a less importance. But wealth is actually more than money. There are three important components to wealth with each component been the fundamentals that are required to achieve success. Wealth, Health and Wisdom are the three categories required to start the road to building wealth.
Wisdom is knowledge and there is plenty of information available that will help you choose in what direction to invest. But is there too much knowledge available and does that detract from the overall goal of investing to make money.
If one of your goals is to have one million dollars of net worth by retirement one option is to put $300 a month into your 401k plan and choose S&P 500 stock market index fund. If you're 35 years old now and plan to retire at age of 65, you'll gave exactly one million dollars 30 years from now assuming the SP index repeat itself in performance at the rate of 10% return.
My early mentors then were in my life situation, my maternal grandmother who was essentially my mother and my paternal grandfather who played the role of father to me. Grandmother taught me to give aid to people to help them get on their feet. She would never allow a child to go hungry; even the lost children that lived on the streets in the days of my childhood. Grandfather taught me the importance of building the family. The family is a great part of your wealth building foundation. He made sure I was introduced to the skills of working well in any situation. He gave me the knowledge of the ancient world; the old texts and philosophies of building wealth.
If you are building wealth for the short term, think about your own timeline and begin with a starting date but more importantly have a desired end date. On the other hand long term builders may not have an end date as they are planning for their retirement. For this type of person the end date never comes because in retirement you are always building on the wealth you made over the past years.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Debt Consolidation Loans Bad Credit You have full permission to reprint this article provided this box is kept unchanged.
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