Wealth Creation Blog

When you are a young child, you go to school with the goal of making the best possible grades. Once you are all grown up, you find a job and struggle to make ends meet as best you can. You are aware that in order to become wealthy, you need to make wise investments. It is time to consider what you may be doing wrong. It is important to take the time to think about the reasons that other people are able to create wealth and yet you struggle constantly.

The reason so many people are left struggling to survive financially is that they do not pay an adequate amount of attention to their financial report card. Many people fail to manage and track their expenses and income efficiently. In order to create wealth successfully, you need to discover all of your options for obtaining funding for your investments.

First of all, you need to make a list of all of your income sources for the month. Many people will only have a single source of income, which is typically a salary from their regular employment. Then, you need to write down all of your expenses for the month.

Be sure to note that some expense will repeat daily, some will repeat monthly, some quarterly and some expenses only come around once a year. To include these expenses, divide the regular payment amount by twelve in order to figure monthly cost. For example, if your club dues are two hundred dollars each year, your monthly cost is about seventeen dollars per month.

The next thing you need to do is divide the expenses on your list up into two different categories: necessity and luxury. List the things that you must have, such as power, water and phone, on the necessity side. Everything else, including coffee and doughnuts for your morning commute or four shades of pink lip-gloss, goes on the luxury side.

Once you have your income and expenses in order, the next thing on which you need to focus is saving. A good starting point is ten percent of your regular income each month, but if you can only afford a dollar a month, it is better than not saving anything at all.

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

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

The only way to build wealth is with a strategy. Too many people focus only on becoming wealthy without a clear plan in their head about how to get it done. The result for most is failure. Any contractor will tell you that it is impossible to build a structure without blueprints. The same is true if you are trying to build wealth, you have to have a clear outline of the strategies for wealth creation that you need to meet your goals.

Getting Started

One of the most basic strategies for accomplishing financial freedom is to invest in real estate. The real estate market is the foundation stone of many success stories. So, often one of the first steps to wealth creation is to invest in the property market.

The next thing you want to do is think about any disposable income that you may have and keep your eyes open for somewhere to invest it. If you have a savings account, you may feel wealthy and secure, however it does nothing in the process of making your wealthier. Even if you invest with just a small amount of money, you still need an effective wealth creation strategy.

Staying Focused

Finally, one of the most important strategies that you need to succeed is discipline. You have to have discipline if you ever plan to be wealthy. It is too easy to use any disposable income you receive on little luxuries leave you with empty pockets. It is hard to resist the temptation of using that nest egg on a much-needed vacation or that new car you have been eyeballing. If you truly want to achieve the freedom of being wealthy, you must understand the difference between investing your money wisely and just spending it.

One of the most important investments that you will make is the one that you make in yourself. Use a little of your money to invest in a few investment or financial planning courses to learn as much as possible about creating the wealth strategy that will get you where you want to be financially.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 – 2009