Wealth Building 101 For The Long Term

By Micheal Joness | August 17, 2007 | Popularity: unranked (?)

Whenever we read about building wealth or even attend a seminar for that purpose, we usually start by assessing our present financial status. When Building Wealth by Russ Whitney was first released in 1994, it was hailed as a cutting-edge, comprehensive book that offered a step-by-step plan to reach financial independence and build long-term wealth.

After all, Whitney has had other bestsellers since Building Wealth, including Millionaire Real Estate Mentor and The Millionaire Real Estate Mindset. As far as courage goes when it comes to wealth building, many people tend to be like the cowardly lion from the Wizard of Oz.

Most of the people I talked to have college degrees, but they didn’t know the basics of wealth creation. Sure, you could fail and that’s what stops most people succeeding, but if you have the right method and the right attitude, you can succeed in building wealth. Once you have set the goals for your wealth building, the next step of financial planning is to lay down a feasible and executable plan.

They say “If you can’t defend you won’t win no matter how good your attack is” and it’s the same in building wealth. The first and utmost important thing for wealth building is that you have to have a big enough nest egg to grow your money no matter what strategies you try – real estate investing or stock market investment. The key is to maintain a will do attitude, use what you’ve got that may have more value to others, and find inspiring ways to have other people invest in your wealth building program.

The key ingredient that segragates winners from losers is discipline and playing the odds at the right time, if you take on the mindset to succeed, have belief and are prepared to take calculated risks you can succeed in what is probably the most lucrative of all ways to build wealth fast. To build wealth you need to balance the risk reward and aim for the highest reward, with low downside risk.

Property in the right location tends to appreciate at a strong upward rate, with very low downside risk and tends to have far better risk reward for example than mutual funds. Its not just the upside potential it’s the fact that it tends to lack downside risk. When you invest you want to compound your money and make your money do the work of making more money and this means not aiming for the biggest growth but the biggest growth you can with low downside risk.

Consider this, if you make 100% on 5,000 you have $10,000 but do the same again and you have $20,000 and this exponential growth can build huge money in time. Creating wealth means finding out what you can do, and what you can do to make money with the skills that you have. Financial growth involves the ownership of multiple money producing assets that flow to you, not money draining assets that flow from you.

One of the least practiced techniques for building wealth is to set aside money in separate accounts.Another important aspect of building wealth is to know what to do when the money does start to come in. If you are unsure of where to start and feel like you just aren’t cut out for wealth building, there are programs that will instruct you further.

Once you have a goal, created a plan, and disciplined to use the plan, the strategies and the techniques you learned from wealth building seminars or real estate investment seminars would take the course of your wealth building further.

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