Wealth Creation Blog

Think about where you get the majority of your income. It most likely comes from some type of paycheck. This type of earning is known as active income. Active income requires some act from you. An example of active income is giving your time to regular employment. You only get paid for the time you are at work, and if you do not give your time to your job, you are not paid.

Four Categories

Especially these days, the world seems to revolve around money and time. People can be divided into four separate categories. Some people are paid a lot of money, such as those in managerial positions who work as many as fifty to sixty hours every week. These people have a lot of money, but lack the time to spend it on the things that they enjoy.

Some people are unemployed and do not have jobs on which to spend all of their time. Therefore, unemployed people have a great deal of extra time, but do not have the funds to pay for any activities that bring pleasure to their lives.

Middle class people are usually running short of time and money. These are the people that work long hours for mediocre pay. Middle class people are typically the most stressed out of all four categories.

Finally, some people out there have managed to find that sweet spot where they have all the money that they need for the things they need, and plenty of time to spend it on the thing that they want.

The Difference

The difference between the well-paid, unemployed, middle class and wealthy is the relationship they have with money. Wealthy people work toward the creation of income flows that will provide future income. This is where passive income comes into play.

Passive income is money that you earn by doing nothing. This is the type of income to which people are referring when they say, “make money while you sleep”. With passive income, you do the job once, but continue to be paid over and over. An example of passive income would be a musician. They record an album once and then that album will continue to provide them with income each time another copy sells.

Search the Internet for the passive income that fits you best and say good-bye to the rat race forever.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010

In order to be productive, you need to familiarize yourself with a formula that will allow you to calculate your financial worth at an hourly rate based on the upcoming year’s projected income. The results of this calculation will open your eyes and be able to realize the importance of knowing your financial wealth in an instant. Once you do this exercise, you will look at your daily schedule in a whole new light and become aware of all of the time that is being wasted.

Assume that your target income for the next year is $400,000. A single year consists of fifty-two weeks, but you should allow a couple of weeks for vacation, holidays, illness, etc. So, let us say that there are fifty working weeks in an entire year. Each workweek is made up of five working days, so there are two hundred fifty workdays in a single year. At eight hours per day for two hundred fifty days, we get two thousand working hours per year.

Divide your projected income by the number of working hours and you come up with $200 per hour. However, this is not all there is to it. Out of the two thousand working hours, only one third of your time is spent producing revenue. That knocks your hours of productivity down to around six hundred sixty-seven. It is okay to round up to six hundred seventy in order to keep the formula simple. That means that your financial worth is close to $600 per hour.

Once you know your financial worth, you will be able to use that knowledge to improve your wealth creation strategy to ensure you are well on your way to financial freedom. Knowing what you are worth gives you a base to work from so that you are able to manage your time in the most profitable manner.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010

Money is on the minds of most people in the world. For some people, it is the biggest thought on their mind. When people think about money, they concentrate on wealth creation. However, many people do not realize that they should actually be focusing on wealth management.

In concept, the biggest mistakes made by people who are trying to grow their investments and build wealth, but they can make all the difference when you goal is financial freedom. You should avoid as many wealth management mistakes as possible, and learn from the ones you cannot.

Wealth management is centered on one thing and that is wealth. The majority of people focus on having enough wealth for retirement, building a nest egg or just playing it safe financially. However, being wealthy means having an abundance of money and not having to worry about having enough just to survive.

You need to focus on coming up with strategies and plans that will make it possible for you to get to where you want to be and not just in a safe zone. Safety is not a bad thing, but playing it safe all of the time will not get you anywhere except right where you are now. Your focus needs to be on abundance as well as creating and using strategies that keep you heading in the right direction toward you goal of financial freedom.

Another mistake in wealth management that people often make is not working with a team. You do have to pay many CPAs and accounting firms up front and the fees may be quite high. However, having a qualified team working on your side is priceless. Spending one hundred dollars for a financial professional to take care of your finances, provide you with sound advice and assist with your overall wealth creation strategy. In addition, the cost of a financial professional is tax deductible.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010

Most people these days are looking for a way to become wealthy as quickly as possible in order to keep up with the fast-paced world that we all live in today. Many people think about it randomly while they are working their day jobs, others concentrate on building wealth all day every day. Lots of people are left wondering how it is possible to make money quickly when there are so many other people out there with the same goal.

First, you need to define exactly what you consider quickly. If quick to you is purchasing a lottery ticket on your way home from work on Friday and winning the jackpot on Saturday, then there is almost no chance of you becoming rich quick. Not saying that such an instance cannot occur, but you could stand to lose a great deal of money attempting to get rich quick through such a method.

For most people, getting rich fast is about making money without it feeling like work. Several short cuts to earning money are out there, the problem comes in tracking them down. The people that do manage to find these ventures do not want to share any information in fear of it taking money out of their own pockets. The people who are willing to share the secrets often go unheard because of the abundance of fraudulent gurus trying to make a profit around every corner.

The secret to getting rich fast is to find a gap in the market of your own and focus on filling that gap to the best of your abilities. Concentrate on the skills and knowledge that you have acquired over the years through hobbies, education and previous employment. Search for a gap that needs to be filled with a solution that you are able to provide. Learn as much as possible about the niche you choose and focus on becoming an authority in your own market.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010

Anyone interested in wealth creation has most likely noticed the lack of financial education that is available to children in grade school or secondary school. So many young people in the world today do not have a good financial role model to whom they can look for advice and guidance. Someone should be teaching teenagers about wealth management and the importance of wealth creation. It is up to you as a parent to teach you teenager the importance of thinking in the long term, having patience and instilling a sense of frugality into him or her that will lead them to creating the wealth that they will need throughout their lifetime.

Start by discussing the pitfalls of debt with your teen son or daughter. Do not be afraid to use loved ones or yourself as an example, for better or worse. Explain the way credit works to your child, tell them how it affects buying power and how quickly the fees can add up if you do not manage your finances well.

Teach your teenager the difference between healthy and unhealthy debt. Let them in on the minimum monthly payment scam used by credit card companies to keep people in debt for many years. The majority of teenagers in the world today simply do not realize just how quickly you can fall into debt. When your son or daughter reaches college age, they will be bombarded by enticing offers from several credit card companies. Teach them everything they need to know to avoid such traps.

The next thing you need to talk about with you teen is investing. Begin small with bonds, interest-bearing bank accounts as well as certificates of deposit. Teach you teen how to get set up with a money-marketing checking account as well as a few fixed-term investments. The yields from these initial investments do not have to be high, they just need to set the stage for your teen to learn how real-life investing works.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010