Wealth Creation Blog

Now that you have the general idea of what Jamie McIntyre’s “Baby Bucket” strategy entails, let’s talk about what goes into each of these buckets.

Security Bucket

The security bucket is your security net. This is not a foreign concept to most people, but it is one that is largely ignored. This is your physical cash and savings, as well as anything else that lends you security—insurance, retirement accounts, annuation…

Don’t expect to make big returns on the investments in your security bucket. You should see some small percentage returns, but keep this money as fall-back money. This bucket gives you the security to afford larger, riskier investments that will net better returns.

Growth Bucket

Your next wealth creation bucket is earmarked for growth. Fill this bucket with the things that will grow your investments—the things that are a bit more risky than those in your security bucket.

Your growth bucket might be filled with things like companies (good quality companies), residential properties, share renting, etc.

Momentum Bucket

The momentum bucket would be filled with monies that will continue to support your investments—money that makes money. This is the place for the big risks. You may put a smaller percentage of your money into this bucket, but it has the potential to net the biggest returns, and so can perform as well or better than any other. Each gain in this bucket will snowball to even bigger and better wealth, but you have to take care not to fill this bucket first and not to place everything in this bucket, or you will be wiped out—you’ll defeat the whole purpose of the bucket concept.

Lifestyle Bucket

Creating wealth is really about creating the means to support the lifestyle you want, yes? It makes sense then that one of your buckets should be a lifestyle bucket—an investment that may make a meager return, could possibly be turned into a more modest return, and that meanwhile helps you achieve the lifestyle you want.

Your lifestyle bucket might include a farm or ranch property, winter retreat, restaurant, inn, and so forth.

You have to take care filling your lifestyle bucket, though. This is sort of like when we talked about the appearance of money—just owning a lifestyle investment does not make you rich. Don’t jump into filling your lifestyle bucket too quickly. Start small, and first make sure you fill the financial bucket that can support that kind of a lifestyle property.

I hope you are starting to get the idea and starting to see how this type of diversification can create a firm financial foundation for your wealth creation plan. Attending to each part of the wealth creation puzzle will ensure that you have the things you want, the money you want and need, and the investments to back them.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

bookmark to:

The “Baby Bucket” principle shows you how to spread risk. And we talked about the fact that the bigger returns are on the riskier investments. So why not just go to the end game and start enjoying big returns right off the top? Why bother with these smaller securities?

“…the fastest way to become wealthy is determined by the speed at which you get yourself into a position where you can afford to lose money.”
–Jamie McIntyre

Success in wealth creation doesn’t just come from having access to money to dump into a stock. Wealth is built when you have money to back you so that you can afford to take the big risks—so that you can afford to lose the money on your investment.

The Baby Bucket strategy aligns your money and investments in a way that allows you to create wealth in smaller intervals and also builds an investment base. When you have the smaller bucket working for you, you have a self-sustaining financial program that brings in investment money and works as a fall-back should a single large investment go bust. This is what the wealthy do, and this is what you should do if you want to find an easy path to investment and wealth creation.

The bucket concept is more about being able to afford to invest and lose than it is about gains (which will come naturally later). The bucket strategy is about building financial intelligence and sustainability.

Note, though, that being able to afford loss does not mean you have to lose

It just means that you will not be wiped out and back to square one if you do. This concept of spreading risk is about creating sustainability in your wealth creation program, and securing true financial freedom by having all the bases covered.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

bookmark to:

One of the things that is very apparent to people pursuing wealth creation and starting from the low or middle ground is that it is difficult to find the money to fund investment and wealth creation. But as Jamie McIntyre points out, there are many places that you might be spending money that could be used to finance your future, and at the end of the day, perhaps all you need to do is do decide if your waste money is worth it.

Where Money Gets Wasted

Of course there are living expenses that you cannot escape. Those are not the monies we are targeting here (although if you live extravagantly or above your means and you are justifying that lifestyle as a living expense, that may be an area of spending that needs targeting). What we are really taking about here are the many large and small expenses that you keep that you could live without and not risk life or limb, sustenance or housing.

Take a look at where your paycheck goes. Account for everything. Recurring bills and living expenses will be easy, but also look at the little places that you are throwing money. These might be things like

• Coffee breaks

• Lotto

• Lunches/dinners out (or ordered out)

• Entertainment

• Recreational activities

• Interests you spend on, but never follow through on

• Wasteful living

• A hobby

• Spending on quantity, not quality

Some people find it helpful to keep a journal and a receipt for everything they do for a period of time—say for a week or a month. In review, it becomes obvious that there is a lot of fat in the budget that could go—numerous little expenses, and some big ones, that just don’t need to be there.

Sometimes an early wealth creation strategy requires you to sacrifice convenience a bit, but in the end tightening your belt will really pay off. Keep in mind that you can always replace the few cuts you’ve made later—but in bigger and better style, but you can never get back the time and resources you’ve lost that could have funded an earlier, more successful plan to build wealth and achieve financial freedom. I guarantee you’ll never miss that silly purchase when you are rich.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

bookmark to:

Wealth creation programs are not all the same. Many are so complicated that, although they work, they could never be used to any successful degree by an average person. On the other hand, there is at least one program out there (thank you, Jamie McIntyre and 21st Century Academy) that can really help the average man or woman succeed at building wealth and achieving financial freedom.

Characteristics Of A Fitting Wealth Creation Program

To find success in wealth creation, you have to choose a course or program that will suit your needs and lifestyle. This should be a complete package that feeds your mind, body, spirit, and financial needs while still fitting into your life. Here is what you need to be thinking about when you choose a course or program for building financial wealth.

Ask yourself, is this program…

• Understandable?
Do instructors/authors speak in a language that you can understand or do they talk in financial jargon that is foreign to you? Are concepts sensibly arranged or haphazardly thrown together? Does one concept build upon the previous?

• Proven?
Have people actually used this wealth creation course and made money? Have people achieved the results that are promised? Have you been given any testimonials or references of these people?

• Supportive?
When you become stuck on a concept or on a step of the plan/financial program can you contact a mentor or teacher and get some clarification and assistance? Do other resources exist (like articles, forums, etc.) that you can go to for ongoing reference and support?

• Starting at the beginning?
Does the program take you from the point you are at now and teach you how to create wealth from the very beginning? Or does it tell you to come back when you’ve put thousands aside?

• Affordable?
Is this a program that only the rich can access or are payment plans and options given to help you fund your financial knowledge?

• Accessible?
Does this program expect you to chase seminars to remote locations around the world or is there a balance of seminars offered at strategic locations and at home or online?

• Interesting?
Is there enough useable information being presented with enough interesting investment strategies to interest you long enough to see the program through or is this a one-size-fits-all type of deal with the option of take it or leave it?

Find a program that has all of these components, and you’ll find a program that you really can use to succeed and create wealth. Make sure that your wealth creation program is well-suited to your life and your needs.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

bookmark to:

If you wait to pursue wealth creation and/or a wealth creation education until you have the time, you know you’ll never get around to it. Because just like everyone else, your life is just too busy and there is never enough time.

Make The Time To Create Wealth

Whether you are deep into your wealth creation course or just thinking about creating wealth, no doubt there has been time when you’ve thought you just can’t find the time for wealth creation. Like everyone else who hasn’t made the time to create wealth, your life is full with work and family commitments, among others for sure. The truth is, no one ever has enough time for a new endeavor like pursuing financial freedom unless they make that time and make the task a priority in his or her life.

Ironically, the only way you will ever find free time is to become financially independent so that you can make the choice to work or not work—without your entire existence depending upon it. Look at the things you spend time on in your life that could be replaced to allot you the time you need for wealth building. Even if you can find a half an hour a week, that’s half an hour more than you’ve been spending (and if you really make the effort, surely you’ll find more).

Think about what you do in the course of day or week, and see what activities (or inactivities) you could replace. Devote the time you are spending on those things to a wealth creation course or an investment project.

What making the time for wealth creation really goes back to is attitude and determination—the things that are taught in the best wealth creation programs, and two of the keys to the millionaire mindset. When you can commit to that mindset and work to achieve it, you will find a way to make the time to make your plans for financial wealth succeed.

Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008

bookmark to: