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.
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..
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!).
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.
So, who were my mentors? I had already mentioned these four business men. The main reason they had decided to hire and mentor me was because of my demeanor; my upbringing. They wanted to know how it was that I had learned all those social skills and the ancient ways of culture. I then realized there were actually more mentors in my life. They were the true mentors that teach you the life skills that become incredibly important as you journey thorough life. These business mentors actually valued what I had already learned as treasures of mankind.
Whatever way you chose to start building wealth, always remember those words from the mouth of antihero Gordon Gecko in the movie Wall Street..."Money never sleeps pal". Different asset class values will shift in time (daily/monthly/annually) and according to market cycles. It's also a good idea to scrutinize your assets and then take steps to re-balance your portfolio periodically. You also need to match risk to what stage you are in life. So, want to know how to build wealth quickly? It's simple: Take your hard-earned money, save as much as you can as you go and then choose a strategy (from above) and consistently, month by month, year by year, apply yourself to these wealth building strategies.
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..
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!).
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.
So, who were my mentors? I had already mentioned these four business men. The main reason they had decided to hire and mentor me was because of my demeanor; my upbringing. They wanted to know how it was that I had learned all those social skills and the ancient ways of culture. I then realized there were actually more mentors in my life. They were the true mentors that teach you the life skills that become incredibly important as you journey thorough life. These business mentors actually valued what I had already learned as treasures of mankind.
Whatever way you chose to start building wealth, always remember those words from the mouth of antihero Gordon Gecko in the movie Wall Street..."Money never sleeps pal". Different asset class values will shift in time (daily/monthly/annually) and according to market cycles. It's also a good idea to scrutinize your assets and then take steps to re-balance your portfolio periodically. You also need to match risk to what stage you are in life. So, want to know how to build wealth quickly? It's simple: Take your hard-earned money, save as much as you can as you go and then choose a strategy (from above) and consistently, month by month, year by year, apply yourself to these wealth building strategies.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Personal Loans: For All Situations! You have full permission to reprint this article provided this box is kept unchanged.
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