Wealth Creation Blog

As the price value of gold continues to increase to amazing new heights, more and more investors are choosing investments in the precious metals in order to create wealth. Gold, as well as other precious metals are tangible assets, but you can lose dearly if these investments happen to fall into the wrong hands. The problem with investing in gold and other precious metals or gems is that they take up space and it can be difficult to find a safe place to store your investment.

A number of different options are available when it comes to tangible assets that will not be quite as exposed to danger of theft or other troubles, such as:

• Cash

With banks losing their shirts left and right, it is a good idea to make sure that the FDIC insures the bank that you use. If the FDIC protects you and trouble should come for your bank, you will still be able to get all of your money back. When you make the decision to put your money in the bank, do not make the mistake of putting all of your money into a single bank. Diversify your funds to help protect you should one bank or another go under.

• Coins

You can gather tangible assets by collecting coins. In addition to increasing in value as time goes by, collecting coins can also develop into a hobby that will keep you occupied in your spare time. You and your family can enjoy spending time together searching for rare coins with metal detectors.

• Property

The time has never been more right for investing in the real estate market. The interest rates are at lower levels than ever before in history. Obviously, the real estate market will eventually recover. In addition, you will be able to enter the market for a bargain price and make an incredible return on your investment.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2009

If you are considering ways to create wealth, you are most likely familiar with the general terms for building your investment strategy. It is important to build on what you know by becoming more specific is the ways that you apply your wealth building block in order to create infinite investment options. Although, there are a great number of options available to create wealth, the basic strategies include bonds, cash and stocks. Now, let us take a closer look at all three.

Bonds

Bonds are also known as ‘debt instruments’. Basically, they are the way that companies on all different levels of the government have access borrowing to money. Fundamentally, when you purchase a bond, you are in fact loaning out your money. In theory, you will in return receive payments of interest in addition to the original amount once your bond matures. Rarely, do investors hold the bonds until they are mature. The bonds are typically purchased, and then it is sold on the secondary market several times over as the bond ages. This means that the actual face value of the bond is susceptible to variation.

Cash

If you hear someone talking about the amount of cash that they have in his or her portfolio, this does not mean the actual cash in their wallet. They are speaking of cash investments. With a cash investment, the amount that you invest does not fluctuate. Plain vanilla savings, money markets and CDs are common cash investments.

Stocks

If you own stock in a business, you own part of that business. You may only hold a few shares, but no matter how small the percentage ownership is ownership. Now this does not give you the right to go to the home office and tell the CEO how to run the place, nor does it give you the right to wheel out an office chair or eat a snack in the employee lounge. Holding stock in a company simply means that you are entitled to a portion of the money that the business earns. For example, if your shares add up to 10% of the company and the company earns $100, 000, your shares are worth $10,000.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2009

Trading options is getting more and more popular with each passing day, especially among sophisticated individuals looking to create wealth. Options trading was once something that was only attempted by professionals. However, if done correctly, options are a great way to generate wealth by creating a constant flow of cash.

An option is either a put option or a call option. If you are the one selling the option, the you will receive a premium from the person that buys that option. A call option gives the buyer the option to buy stock at a set price, but the buyer is in no way obligated to purchase the stock if they decide it is not for them within a specific amount of time, typically within four to six weeks. With a put option, the buyer has the right to sell shares at a specific time for a certain price, but they are not obligated to do so.

In order to successfully create wealth through buying and selling stock options, you need to be the option seller, but it is not always necessary. However, if you are the seller of the option, you will receive a nice premium for the trades, which is an excellent source for cash that can be used in any other wealth creation strategies that you are implementing. All options come with and expiration date and time, each passing day means that the options are worth less and less money.

A great number of wealth creation strategies are available that you can apply to during any market conditions, because there is a place for each one. The previously discussed description is just to give you a basic understanding of the way that options work and how you can use them to your benefit. Once you understand the ins and outs of options trading, you will be able to effectively use this method to create wealth.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2009

We are all very well aware of the fact that there are outside influences that impact our efforts to create wealth. We know that with awareness and with focused effort, we can weed out the bad and focus on that which will be helpful to us. As you do this, you need to also be aware of the roll that “hero worship” plays in our lives, and be sure that you are not letting your heroes have a negative influence upon you and your prosperity or financial freedom.

Who Are Your Heroes?

We all have “heroes” in our lives—you know, people whom you look up to and admire and emulate. It might be your father or mother, a wealth mentor, a friend or significant other, a teacher or educator, or any or all of these or someone else entirely. It might not even remain the same person; as we grow, we take on new heroes and discard some of the old.

Whoever it is, take some time and think about who your heroes really are. It will be to your distinct benefit to be conscious of the people who you are (either consciously or subconsciously) emulating so that you can maximize the good about them and minimize any negative aspects.

Heroes Are Not Perfect

As you do this, you need to be aware of this point as well—in real life, heroes are not perfect; their lives are never identical to your own, either, and that matters a lot. Every hero has his or her flaws, so you need to be careful to pick and choose and emulate only those characteristics that are positive and beneficial to you.

You also need to be aware of that second point—no two lives are ever the same. So while the choices and actions of your heroes work as a good guide, you always need to make your decisions about making money, finance, investment, and life in general within the context of your life, not his or hers.

Heroes and mentors can be great things, as long as you are choosing worthy examples and considering actions in terms of your own life. Love your heroes, but also be watchful and understand that your life is uniquely your own. Your heroes are there for guidance, but you are the real action-hero of your life.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2009

In posts past we’ve talked about how it is important to include kids in your financial plans for wealth creation. We’ve talked about how much better the start in life for our kids could be if we applied what we know about financial empowerment and building wealth from the start. Every now and again I like to dedicate a post or two to these types of topics in the interest of building a better, simpler, wealthier life for the kids.

Giving Kids A Wealthy Vocabulary

It’s a lot easier to raise children with a wealthy mindset than to try to correct it later. I think any of us here who have been through this process, or are going through it now, could easily agree. And one of the ways we can make their lives easier from the start is to give them due credit for understanding the concepts and the language of wealth.

When you talk openly about finance and wealth with your children, you suddenly strip away the many barriers that go up in our paths to adulthood. You prevent children from forming the attitude of negativity around wealth and money, and negate the need for them to have to work to break down those walls later.

Meaningful Language

The other thing that you do when you use real, meaningful language with children is teach them real, meaningful words and concepts. This is important because if a child knows the words and understands their meaning, they can learn from anyone who is speaking it. That educated child will be able to read and learn and recognize what it is they are exposed to. They’ll be ahead of the game because they will have that innate knowledge from the beginning, and so they can continue on to wealth and prosperity instead of just getting started (or worse, having to recover and relearn things they should have known all along—if only our traditional education would catch up to real, meaningful financial management and education!).

It’s a great thing that an adult does when they recognize their ability and right to wealth. But it’s an even greater thing they do when they pass on that knowledge and power to another, and give a child a strong financial start to life. Have real, meaningful financial conversations with the kids that matter to you and help them to a better life-start.

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