If you are wondering how to build wealth, then this article will give you a good overview of the 3 typical ways you can build wealth quickly. These aren't difficult to understand and others have made their millions by excelling at one of these choices.
Who doesn't dream of marching into their boss' office one day and resigning without caring about the financial repercussions? Well, you can only do so if you have acquired sufficient assets (wealth) through which you can generate a future income to replace your current earned income. By the way, as a rule of thumb I don’t recommend you hand in your resignation unless you have at least 1 and ideally 2 years living expenses put away in liquid assets.
Simply put, to become wealthy over time you basically need to make, save and invest money wisely. The smarter you are at doing this the faster you become wealthy. Assuming you’ve read my other articles on How to Get Rich (the making of and management of money) then you are ready to look at the 3 most common wealth building strategies of the super wealthy.
1. Investing in Paper Assets (Stocks, Bonds, Funds, Currency)
Investing in “paper assets” is a great way to start building wealth. It teaches you the principals of money management, capital, rates of returns, risk etc. You can invest in stocks, bonds, mutual funds, commodities, and foreign exchange ("forex").
To help you get started, read full Wealth Building article here
2. Investing in Real Estate
Real estate is another great way to build wealth. With real estate, you typically buy a property and then make money through selling it eventually for a much higher value than its purchase price and/or becoming a landlord and letting the property. One of the advantages of real estate investing is using the principle of leverage (i.e. a mortgage) to buy an asset that you otherwise couldn’t’t afford. Leverage isn’t commonly available in paper assets investing (although you can buy on margin but this can be risky if you don’t know what you’re doing!). (find out more)
3. Starting, or Owning a Business
Starting, or owning a business is another common wealth-building strategy. Starting a business doesn't always make you really wealthy right away. It takes time and energy to build the income of a business and its capital value, but it can make you wealthy over time if managed effectively. Therefore, if you have previous experience of running a business it can sometime makes more sense to buy an existing business and simply run it better. Want to know how to build wealth starting or owning a business? Read full article on How to Build Wealth here
Friday, February 12, 2010
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