Wealth Creation Blog

The reason that investing turns bigger profits than traditional bank accounts is that the investment markets are riskier—you are rewarded for investing in something that is not a sure bet. Therefore, inherently, wealth creation through investment is somewhat risky; without risk, though, all you have is marginal growth through savings.

However, your overall wealth creation strategy does not have to be risky. By using a simple strategy for wealth building designed by Jamie McIntyre, you can spread risk thin so that there is little to no chance of losing it all.

Baby Buckets

Jamie starts us off with the analogy of a big bucket of wealth. From that store, the money you have is divided into four smaller “buckets”, or “baby buckets” as Jamie likes to call them.

Each baby bucket is purposed for a different type of wealth. First you have your

• Security (cash) bucket

• Growth bucket

• Momentum bucket

• Lifestyle bucket

Each of these buckets, as you might have guessed, carry a different level of risk and are to be used for different types of investments (or for different strategies, as you choose).

The purpose of the baby bucket strategy is to create a personal investment portfolio of sorts. Taken as a whole, these baby buckets give you the ability to both secure a firm financial foundation and grow funds without the risk of losing it all. It’s risk and security all rolled into one.

In a future post, we’ll talk more about what goes into each of these wealth creation buckets and what the different levels of risk are. For now, start thinking about this concept. Strategies like the baby bucket principle are an important part of developing financial intelligence. These are the types of strategies that will help you start thinking about the big picture and the kinds of spending/saving/investment changes you need to make in your life so that you can work towards achieving sustainable wealth and financial freedom instead of gaining a few big investment wins that will last only temporarily.

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

How many years in a row has this happened to you:

• The New Year comes, you set a resolution to improve your financial future

• You start off well, but quickly get sidetracked by life

• By February, you start promising to get back to that resolution as soon as life settles down

• By the end of the year, you are no better off than you were the year before, and you start to regret the time you have lost, and the time that you see yourself spending working and struggling in the coming year

Don’t feel bad, this is probably the case for the majority—year, after year, after year. The only way to break that cycle of regret for next year is to do something now.

This Is Your Year For Wealth Creation

Whatever your starting action is, take it now. Set time aside today to do something—anything- that will lend towards your wealth creation goals. This can be a simple start—read about opportunities in wealth creation, sign up for a wealth creation newsletter, subscribe to a blog, order a wealth-building program. Whatever it is, take a small step today, and commit to growth from there. Don’t stop with today, though; plan to make this your action on a regular basis for a long time to come.

• Set aside time during your week for researching and working on wealth-building programs (daily is excellent—every few days or even once a week will work, too, and will at least get you somewhere!)

• Take that time! Don’t excuse it away or let other commitments get in the way when the time comes. Treat your time for pursuing financial freedom as any other commitment, and act as though your life depends upon it (after all, it does, really, doesn’t it? Your secure, comfortable, financially free life does).

• Draft a plan and a set of goals, and track them as you go.

• Join a wealth creation program that will guide you and your efforts at making more money this year.

• Build upon your forward movement, and enjoy the motivation of routine and achievement.

Do you see a theme here?

You haven’t been given a list of absolutes (because wealth creation is individual); you’ve basically been given a call to action. To stop the cycle of wealth creation regret, you have to start on your way. Do something today so that lost wealth-building opportunities are not a regret next year. Do something that sets the standard of forward movement in wealth creation. Do something today that makes your life better tomorrow!Oh—and feel good about yourself, too, because you just did! You just read this blog on wealth creation. Now go do something else for you!

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

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

If you’ve not yet mastered the art of wealth creation, the probability is that you haven’t the right type of wealth creation education. Get that education, and you will be well on your way to wealth creation success.

What Did School Do For You?

School and college, do play important roles in the lives of successful and wealthy individuals. But if you are relying on the education you received as a child and young adult to guide you through wealth creation, you will be sorely disappointed.

School and university teach lots of things; things that are important in life, things that are necessary to living. We are not anti-education here; however, the thing that we learn from those who have succeeded at creating wealth—people like Jamie McIntyre and Robert Kiyosaki, among others—is that the type of education received at school does little to nothing to prepare us for building wealth.

The reason that school does not prepare students for wealth creation is that the focus of school and university is in career preparation—not in the important things like money management, navigating the world’s financial systems, application of money making strategies, investment and the like.

What school does is give you the skills needed to get a job. School can prepare you for a lifetime of drawing a paycheck, even a very handsome paycheck, but it will not teach you how to make that money work for you.

The Wealth Creation Difference

Herein lies the difference between a traditional education and a wealth creation education. Wealth creation strategies teach you how to use money, not just how to earn it. Wealth creation teaches you how to take what you’ve earned and put it to work for you.

Wealth creation teaches you how to stop working for your money and let your money work for you!

This is the foundation of wealth creation. This is what the rich do. This is how the rich get rich!

This is what you need to learn in addition to your diploma or degree if you ever plan to move forward and live the wealth creation life!

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

The rich get rich because they do things differently than everyone else. The rich focus on saving, creating wealth, and maintaining the right financial attitude. Beyond mindset, we can identify four key skills that the wealthy develop to build wealth.

Again, we look to Jamie McIntyre from 21st Century Academy. Jamie has identified four skills that are key to succeeding in wealth creation and presents them to us so that we can begin to work as individuals to improve our own wealth creation skill set.

Key Skills For Creating Wealth

Here are the four most important skills that you need to develop to create wealth and gain financial freedom.

1. Thinking Creatively. We are conditioned to let someone else do the thinking, and simply regurgitate what we’ve been told by another. The thing that the wealthy do differently is develop themselves as independent thinkers and creative problem solvers. A creative thinker can find a way to meet challenges and overcome. A creative thinker gives the answers, rather than wait for the answers to be given to them.

2. Negotiation. How do the rich get what they want? They negotiate. And that is just what you need to learn to do to get what you want in life. We know how to negotiate as kids, but lose this ability as we age and start to accept ‘no’ for an answer. The wealthy do not accept ‘no’ for an answer when they truly need something!

3. Communication. As Jamie says, it’s not enough for you to know that something is beneficial. You have to be able to convince others of the benefits of a thing as well. When you can sell the benefit of something, you can achieve your desired end result. You have to be able to communicate in an effective manner to do that.

4. Marketing. Focusing your efforts on an end result, and finding a way to market to the business or outside world to achieve that result. This is for anything, including an exchange of ideas or an exchange of goods and money. The wealthy succeed because they find creative, innovative, effective ways to market themselves and their ideas. Developing your brand of marketing skills is essential to wealth creation success.

Enjoy Wealth Creation Success

Fortunately, these are all skills that can be developed in a short amount of time. Start working today to develop the skills of the wealthy so that you, too can enjoy success in wealth creation!

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