Building Wealth - Many Ways to Do It - Pt 1
Building wealth is a lot easier than you think it is.
A very successful investor once told me "successful investing is supposed to be boring...
like watching paint dry.
" Wealth building with passive income is exactly like watching paint dry.
It should be a very mechanical,automated, and boring task if done right.
I make monthly income in the stock market and the process has become so boring I now focus on making money online.
Creating wealth is not always about buying rental properties or stocks.
There are some basic things you need to do to get your wealth building process started.
Consider these and you will be on your way to creating wealth.
Power of Compounding interest Make your money work for you by continuously saving every month and investing at a certain percentage over a period of time.
Compounding interest is a very powerful thing.
I used this very method to turn $268 into $1329 in 6 months.
With 10% monthly compounding interest alone (investing and then reinvesting at the same rate with your profits) you can turn $230 into $30,000 in three years.
This figure will be a lot more if you are also saving.
Also, consider that 10% of $30,000 would mean $3,000 in monthly passive income.
What could you do with $3,000 per month? Get Rid of High-Interest Card Debt For the average person, wealth building is not about what to do with excess cash.
Creation of wealth is mostly about how to keep more of the money that you earn.
" The best way to do that is to pay off high interest and even low interest loans and debt.
If you make the minimum payments on a high interest debt, over the life of the loan you will easily pay more than three times the face value of that loan.
Debt elimination should be a top priority in your wealth building plan.
Buy a Home This is a great long term strategy to build wealth.
The idea is that by the time you are ready to retire, you will have paid off your mortgage and you will be able to live rent free and mortgage free.
Your home will be one of your most important assets.
Balanced, Diversified Portfolio of investments producing passive income The more unique sources of income you have coming in, the better off you will be.
If you only have the stock market, then your wealth will be vulnerable to stock market crashes.
Diversification will help you sleep at night.
Start Your own Side business If you do some research on the most successful people in the world, you will find that most of them became wealthy by starting an online business.
Find a need that you think you can fill, then create a business to fill that need.
A very successful investor once told me "successful investing is supposed to be boring...
like watching paint dry.
" Wealth building with passive income is exactly like watching paint dry.
It should be a very mechanical,automated, and boring task if done right.
I make monthly income in the stock market and the process has become so boring I now focus on making money online.
Creating wealth is not always about buying rental properties or stocks.
There are some basic things you need to do to get your wealth building process started.
Consider these and you will be on your way to creating wealth.
Power of Compounding interest Make your money work for you by continuously saving every month and investing at a certain percentage over a period of time.
Compounding interest is a very powerful thing.
I used this very method to turn $268 into $1329 in 6 months.
With 10% monthly compounding interest alone (investing and then reinvesting at the same rate with your profits) you can turn $230 into $30,000 in three years.
This figure will be a lot more if you are also saving.
Also, consider that 10% of $30,000 would mean $3,000 in monthly passive income.
What could you do with $3,000 per month? Get Rid of High-Interest Card Debt For the average person, wealth building is not about what to do with excess cash.
Creation of wealth is mostly about how to keep more of the money that you earn.
" The best way to do that is to pay off high interest and even low interest loans and debt.
If you make the minimum payments on a high interest debt, over the life of the loan you will easily pay more than three times the face value of that loan.
Debt elimination should be a top priority in your wealth building plan.
Buy a Home This is a great long term strategy to build wealth.
The idea is that by the time you are ready to retire, you will have paid off your mortgage and you will be able to live rent free and mortgage free.
Your home will be one of your most important assets.
Balanced, Diversified Portfolio of investments producing passive income The more unique sources of income you have coming in, the better off you will be.
If you only have the stock market, then your wealth will be vulnerable to stock market crashes.
Diversification will help you sleep at night.
Start Your own Side business If you do some research on the most successful people in the world, you will find that most of them became wealthy by starting an online business.
Find a need that you think you can fill, then create a business to fill that need.
Source...