Wealth Creation Blog

One of the things that seem to hold the working classes back from investing to create wealth is the concern over investment risk.  While the risk of investing is something to consider, gaining a perspective on that risk is much more productive.  The thing that working people do not seem to understand is that risk is everywhere and that it is relative. 

Risk Is Everywhere

• Working for money is risky because you can only hold one or two jobs for limited pay, either of which might go at any time
• Working for money puts you at risk because it takes control of your finances out of your hands, and puts it into the hands of much less vested individuals
• Earning as a reactionary measure is far more dangerous and costly than earning and financial planning (as in wealth creation)
• Risk is affordable with a strong financial base
• Investment risk is manageable through diversification and asset allocation 

Financial Risk Is Nothing To Be Afraid Of

The fear of financial risk is nothing more than the fear of money that is talked about in wealth creation.  Money makes us scared that we will not have enough, or that life-ending things will happen if we put ourselves and our own savings first in our budget.  Fear keeps the working class working and does not allow them the confidence to take a measured or covered risk, even though that is the key to wealth creation. If you really think about it, there is a lot more to be afraid of if you live your life by reacting to a need for money rather than creating the stream of money that can sustain you.

 Most people do live in a reactionary budget state—that is, they try to increase wealth when money is needed, after they are in mounds of debt, rather than create wealth first and then spend it (on whatever you choose). When you can gain a perspective on what is really risky as investment and wealth creation goes, you soon come to realize that the real risk is in doing nothing.  Put wealth creation first at the top of your list, and all other things will fall into place and correct themselves—money does have a way of solving problems!! 

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

bookmark to:

I know we’ve had this discussion before, but this message bears repeating, because this is the reason we are all here.  This seems a good time to reiterate this message, too, since there’s been so much talk of goals and action as of late. 

Why Are We Here, Really?

 It’s important not to lose sight of why you are here. Why we are all here.  We are here because:   

• There’s more to life than money—and working for it will never let you live that life!
  

• Too much life is missed working for money when far more life could be lived by learning how to let money work for you!
  

• Giving our all to others (employers, etc) leaves nothing left for ourselves and our families—those who deserve it most of all!
  

• Much as we might hate to admit it, money does make the modern world go ’round.  Without it, you cannot enjoy the things in life that you truly want to enjoy.

 To sum up, we are here because we want to live life, not just participate in it.  We are here because we realize that wealth creation involves more than just learning where to stash your money.  The effective creation of wealth requires an education and life-overhaul that includes 

• Learning how to pay ourselves and save
  
• Learning what needs to change about our attitudes and mindset
  
• Learning the simple, productive ways to make money work for us without spending our lives working for money

All of us involved in wealth creation—from the creators to the marketers to the people using the systems now—are here to help each other achieve the lifestyle of the wealthy (whatever form that lifestyle may take for you).  We are here to make money, but to make money for a higher purpose….to make money for life!

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

bookmark to:

As you know, wealth creation focuses on the whole-life changes that need to occur and not just on the aspect of investing to make money.  A big part of that requires that you start living the way the wealthy live and believing that you are a wealthy person; so often when you are faced with a quandary it helps to stop and ask yourself…”what would a rich man do?” 

Living The Wealthy Life

Rich people are rich for one reason—they do things differently.  The wealthy live differently because they have a better financial perspective and a better understanding of money; they have a higher level of emotional intelligence and financial intelligence.  Understand what it is that the rich are doing differently—the different choices that they make—and you will be well-positioned to succeed and create wealth. Wealth creation involves studying the way that the wealthy live; it will help you learn how to make the best choices under a number of circumstances.  In general, you should learn how the rich live so that you can begin making decisions that are more in line with the way the people with money do things. The next time you are faced with a decision, try asking yourself what the rich man would do. 

Here are a few examples-  

• When faced with a purchase, ask yourself, is this a quality purchase? Is this a purchase a wealthy person would make?
• When faced with a financial dilemma, ask yourself, how can I solve this financial problem? What creative solution will remedy this situation?
• When faced with an expense increase, ask yourself, am I handling this the way a wealthy person would? Do I have the funds to back this purchase/expenditure? Have I created income that will support this expense in the future? Or will this expense incur more debt?

These are just a few examples.  To guide your future decisions, it helps to know that the people who succeed in wealth creation take responsibility for their financial state and plan accordingly.  Spending is not an emotional reaction, it is a measured decision. Being wealthy starts with living wealthy.  This means that you live according to your financial plan so that you have the structure needed to sustain a lifetime of making money, and that wealth creation becomes a lifestyle. 

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

bookmark to:

It seems that needing more of an education is discouraging for many people who want to learn how to make money (as opposed to work for money, which they already know). Sometimes it seems that people feel poorly that they are lacking an education that others already must have gotten. The thing of it is, all successful creators of wealth get that much needed financial education at one point or another.

Your Exposure Determines Your Financial Preparedness

One of the themes that runs through wealth creation (and we’re talking widespread through wealth-building programs everywhere) is that the education you got in school just isn’t going to cut it if you want to become wealthy. As we’ve talked about many times before, school, college, and university will teach you how to work for money—how to get a job—but they will not teach you how to manage money and create wealth. For that you need to pursue an outside financial education. You needn’t feel badly that your education in finance is lacking—almost everyone’s is. There are a lucky few that have gotten a wealth creation education that has worked to help them make money and build riches, but those few have not gotten that education at school.

The people who have an education in creating wealth are those that:

1. Had a financially intelligent parent
2. Benefitted from the generosity of a wealthy mentor
3. Studied wealth creation authors
4. Took a wealth creation course to learn better life and financial management skills and learn how money really works

I know of no one who was ever born with the knowledge to become rich. At some point, the wealthy learn this. The lucky ones learn it as youngsters and are brought up in the way of the wealthy. The rest of us just need the guidance and support of a good wealth creation education program.

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

bookmark to:

To really be successful in wealth creation, you have to plan to be in it for the long haul.  You have to plan to do more than make the money you feel you need now so that you can develop sustainable wealth to support you throughout your life. 

Today’s Needs, Tomorrow’s Freedom

Most often wealth creation is a second-thought for people.  They come after a lifetime of struggle or after financial defeat.  They come because they realize that the way they make money and manage finances isn’t working.  They come because they want to enjoy life again, and they know that they really do need money to do that. People become interested in creating wealth because they want to relieve current financial pressure.  That can be a strong motivator at first, but what happens once you’ve enjoyed some success, made some money, and built some wealth? What happens next depends on how you went about learning to create wealth. 

•  If you used one or two investment strategies you read about and got lucky enough not to lose your investment money without first building a strong financial foundation (of savings and assets), but didn’t learn how to be wealthy, you will probably wind up losing whatever money you made.  You may find a way to start investing again, but if you haven’t fixed what was broken to begin with, your success in wealth creation will be marked by peaks and valleys with no sustainability.

•  If you recognized that you needed to become both emotionally intelligent and financially intelligent, and first learned how to be wealthy, as well as how to make money, you will have laid a strong foundation in financial management that can be replicated, relied upon, and built upon.  You will have created lasting wealth streams and truly achieved the ability to be financially free.  You will be well on your way to wealth creation success.

The first scenario is not unlike the lottery winner.  The fact that most big winners wind up back where they started (or even worse off) shows that the solution to your money problems is not money, it is education and management. Commit to wealth creation by getting the education you need to succeed.  Do more than make money—make money for life. 

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

bookmark to: