Wealth Creation Blog

The truth is that it is never too early to begin saving money. Benjamin Franklin knew exactly what he was talking about when he said, “A penny saved is a penny earned”.

Waiting until you are close to retirement to begin saving will most likely provide you with a comfortable retirement, but if you want to retire wealthy, then you should get started sooner.

In order to be ready to retire when you are still young enough to enjoy life outside of the workforce, it is best to begin saving money with your first job. Think about it. If you start working as a teenager and you earn $100 per week. If you put back ten percent of every paycheck, in a single year you will have saved almost $500. If you work four years while still in high school, when your expenses are at a minimum, you can easily have a couple of thousand dollars saved up by the time you head off to college.

Think about your savings and your income and determine the best investment options available to you. Set a goal for your savings and when you reach that goal, grow your money even more by investing wisely. The right investments generate passive income, which means that you have more time to do the things you enjoy and less time at work. If you set up multiple streams of passive income in all the right areas, it is possible to earn thousands of dollars each and every month without ever having to work more than just a few minutes a day.

The Internet is busting at the seams with opportunities to earn cash and build your savings. If you have children, get them a piggy bank early and teach them the importance of saving and investing.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2010

Passive residual income is money that you can spend any way you like, such as a beach vacation. When your passive residual income comes from multiple sources, you are well on your way to financial freedom.

Basically, passive residual income is the money that you are paid again and again for a job that you only do once. This type of income makes it possible for your to take a week or so off to lounge around the house, take a vacation or simply sleep in a couple of days. Passive residual income continues to bring you money even when you do not go to work.

The Ticking of the Clock

To learn more about passive income, you need not look any further than the face of a common analog clock. Imagine that every minute on the clock is fifteen months in your life. The entire hour would represent seventy-five years of your life. Your career should begin at about sixteen minutes or so. If you keep working until you are of retirement age, typically sixty-five years old, fifty-two minutes of your life hour is spent working.

Typically, the most productive time in our lives are from the sixteen minute mark to the fifty minute mark, give or take a couple of seconds. You start your job, work toward a raise or promotion and hope the company does not decide to downsize, requiring you to begin the entire process once more. This process is ongoing for as much as thirty-six minutes of your life hour.

When you effectively create multiple sources for passive residual income, you are able to accomplish in less than three and a half minutes what you struggle to get done in the entire thirty-six minutes of working hard. If your only income is from a job, if you stop working, the money stops flowing. With multiple streams of passive residual income, you only have to work when you want to and the money keeps coming. It is possible, if you follow an efficient multiple stream income plan, to be financially free in four to five years, give or take a second or two.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2009

It is possible to create wealth effortlessly by simply planning to be financially free. Many people “wish” that they were wealthy and go out and by a lottery ticket and “hope” that they are “lucky” enough to win. Becoming wealthy is something that you can plan for, and it is easy to create a plan for yourself to create wealth.

When it comes to money matters, if you do not have a working plan in place, it is almost as if you are planning to fail. A great number of people will say that they are going to be wealthy, but fail to plan exactly how. More often than not, these people fail because they do not know how to create wealth, nor do they have a plan to learn.

Plan to Educate Yourself

The first step in planning to create wealth is planning to learn. Most likely, you do not know exactly what you need to build wealth. Wealth creation is a skill that can be learned, it is not something that is given to you, nor is it something you are blessed with at birth. Wealth creation requires hard work, and it is important to gain as much knowledge as possible to move forward with your plan.

Plan for Capital

If you plan to create wealth through starting a business or investing, you need the capital to get the ball rolling. Take the time to research all of your options to determine how you will obtain the money you need, such as through a financial institution, current occupation, savings account or private lender.

Plan for Passive Income

To create wealth, you need more than capital gain. You also need passive income. Passive income is the money that you earn without working for it. The greater your passive income, the more money you will have without the stress of working at a job you hate just to make ends meet.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2009

If you are like many other people in the world today, you are interested in learning how to create wealth and become financially free. As the global economy continues to decline, more and more people are searching for the secrets to wealth creation. The secret to creating wealth is to simply forget about focusing on your net worth because that is of little importance, if any at all.

Cash flow is what you need to focus on if you want to create significant wealth. Several bankers and finance planners may tell you that if you want to create wealth, you have to increase net worth. That is just not so; net worth is not the sole deciding factor to creating wealth. Cash flow determines your financial freedom.
You have achieved financial freedom if your passive income exceeds your expenses and you no longer have to work to sustain you present standard of living. Net worth does not guarantee financial freedom. It may help, but it is definitely not the most important factor in creating wealth.

If you have a net worth of $2,000,000 and $0 passive income, the money will cover your $100,000 per year expenses for twenty years and be gone. If you have a net worth of only $200,000 and a cash flow of $200,000 per year, that flow of cash will continue to pay you your entire life.

Being wealthy is knowing that you have the freedom to do anything you choose to do. It is freedom of you time as well as your money, which is something that you can only get from positive cash flow.

Once you begin focusing on income instead of net worth, you will see an increase in your passive income. Following such a strategy, you should reach financial freedom in five years or less as long as you forget net worth and keep cash flow your main priority.

Sean Rasmussen
Success Communicator
Aussie Internet Marketer © 2004 - 2009

I love this term; it’s been borrowed from Robert Kiyosaki, whom Jamie McIntyre followed heavily as he created the 21st Century Academy wealth creation program.  So what’s it all about? 

What Is Your Business?

To mind your business, you first have to know what that business is.  If you are like most people, you will probably tell me that your business is whatever career-field you are in; but you would be wrong.  Your career is your job—it is your employer’s business, not yours.  Even if you own your own business your work is not your real business, it is your work. Your business is your personal financial plan for investment—it is what you fund with the money you make at your day-job. 

So maybe you are a plumber by trade using the money you make as a plumber to invest in real estate and create wealth.  That makes plumbing your job and real estate your business. Most people do not understand this until they embark on wealth creation. They see their job as their business, and their real business–wealth creation via investment and asset attainment—suffers or, for many, never even gets started. To create wealth, you have to make your business your priority,  This does not mean you do a poor job at your work, it just means you put everything in its place and prioritize that which will make you rich and get you out of your day job. 

You understand the difference between your job and your business, and you engage in a line of business separate from your work that creates wealth (money making money, passive income). If you hope to make money and succeed at wealth creation, you first have to have a business.  Create the business of you and start building wealth today!

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