Wealth|Knowledge and Action… Creates Wealth
May
27
Filed Under (Finance) by wealth
Sean Rasmussen asked:
Successful wealth creating depends on a balance between mindset and financial strategy. Understanding and accepting this determines the success of an individual’s efforts at wealth creation; to determine whether you have the right mindset to succeed and create wealth, take this simple test, devised by Jamie McIntyre of the 21st Century Academy:
- Suppose you were given a choice between being given $1 million dollars, and being given a wealth creation education. Which would you choose?
It seems fairly obvious that the majority of people would instantly choose the $1 million in cold, hard cash. And that majority would also think that all their financial problems were solved. Really, you could do a lot with a cool, easy million.
Would A Million Dollars Really Solve Your Financial Problems?
Honestly, you could do a lot with a million dollars. If you knew what to do with it to make that million last a lifetime. But really, how long does a million dollars last these days? How many years would it take you to spend a million dollars, assuming no investments and no change to your current lifestyle, if you were given a million dollars cash free and clear? How much of that million would go right to paying off your debt? How much would you be left with?
Even if you took that million dollars and did nothing but pay the bills you have, you’d be out of money in a matter of years; long before the end of your life. Chances are you’d even find yourself worse off in the end than you are today.
Sound unrealistic? Consider this
- A study of Australian lottery winners showed that of those who win a million dollars, most are worse off in a period of three to seven years.
Why? Because they have nothing but a lifetime of financial reaction to guide them. They have no money skills, and no mindset to guide their efforts at spending and investing, no commitment to financial success!
Now, given a wealth creation education, people are far more likely to succeed. Had that million dollars been paired with the knowledge and mindset to succeed financially, that money could have been invested and turned into more money, money virtually out of thin air!
The point of this exercise is to show that the solution to financial struggle is not money in and of itself. The solution to financial struggle is an effective financial education, a wealth creation education.
What Is A Wealth Creation Education
A wealth creation education consists of two parts.
1. Lessons in developing the mindset for financial success
2. Lessons in financial strategy, how to make money work to make more money
Together, these two parts make up 100% of the whole necessary to achieve financial freedom for life.
To go back to the original exercise, let’s suppose that this education were chosen over the million dollars. What then?
In that instance (assuming a true commitment to wealth creation), the outcome is far different. Even starting with seemingly nothing, the individual learns to create wealth by utilizing the various money systems and financial strategies of the world. In three to seven years, the wealth creation student is retired (or working only because he or she wants to). In three to seven years, when the lottery winner is struggling more than ever financially, the wealth creation student is letting his/her money work for him, rather than the forcing himself to work for more and more money.
The Wealth Creation Prize
Faced with these realities, it becomes obvious that the real wealth creation prize is the wealth creation education. With a wealth creation education, the possibilities are limitless, and wealth continues to build.
Money comes and goes, as the wealth creation student understands; where one income stream ends, another can surely begin; and while a million dollars can only get you so far, a million and a wealth creation education can take you on for life.
COLBY
Successful wealth creating depends on a balance between mindset and financial strategy. Understanding and accepting this determines the success of an individual’s efforts at wealth creation; to determine whether you have the right mindset to succeed and create wealth, take this simple test, devised by Jamie McIntyre of the 21st Century Academy:
- Suppose you were given a choice between being given $1 million dollars, and being given a wealth creation education. Which would you choose?
It seems fairly obvious that the majority of people would instantly choose the $1 million in cold, hard cash. And that majority would also think that all their financial problems were solved. Really, you could do a lot with a cool, easy million.
Would A Million Dollars Really Solve Your Financial Problems?
Honestly, you could do a lot with a million dollars. If you knew what to do with it to make that million last a lifetime. But really, how long does a million dollars last these days? How many years would it take you to spend a million dollars, assuming no investments and no change to your current lifestyle, if you were given a million dollars cash free and clear? How much of that million would go right to paying off your debt? How much would you be left with?
Even if you took that million dollars and did nothing but pay the bills you have, you’d be out of money in a matter of years; long before the end of your life. Chances are you’d even find yourself worse off in the end than you are today.
Sound unrealistic? Consider this
- A study of Australian lottery winners showed that of those who win a million dollars, most are worse off in a period of three to seven years.
Why? Because they have nothing but a lifetime of financial reaction to guide them. They have no money skills, and no mindset to guide their efforts at spending and investing, no commitment to financial success!
Now, given a wealth creation education, people are far more likely to succeed. Had that million dollars been paired with the knowledge and mindset to succeed financially, that money could have been invested and turned into more money, money virtually out of thin air!
The point of this exercise is to show that the solution to financial struggle is not money in and of itself. The solution to financial struggle is an effective financial education, a wealth creation education.
What Is A Wealth Creation Education
A wealth creation education consists of two parts.
1. Lessons in developing the mindset for financial success
2. Lessons in financial strategy, how to make money work to make more money
Together, these two parts make up 100% of the whole necessary to achieve financial freedom for life.
To go back to the original exercise, let’s suppose that this education were chosen over the million dollars. What then?
In that instance (assuming a true commitment to wealth creation), the outcome is far different. Even starting with seemingly nothing, the individual learns to create wealth by utilizing the various money systems and financial strategies of the world. In three to seven years, the wealth creation student is retired (or working only because he or she wants to). In three to seven years, when the lottery winner is struggling more than ever financially, the wealth creation student is letting his/her money work for him, rather than the forcing himself to work for more and more money.
The Wealth Creation Prize
Faced with these realities, it becomes obvious that the real wealth creation prize is the wealth creation education. With a wealth creation education, the possibilities are limitless, and wealth continues to build.
Money comes and goes, as the wealth creation student understands; where one income stream ends, another can surely begin; and while a million dollars can only get you so far, a million and a wealth creation education can take you on for life.
COLBY
Jan
09
Filed Under (Finance) by wealth
Koz Huseyin asked:
There are so many actions which you can take today, which will enable you to live a financially abundant future or not. Simple actions can make you wealthy now and in the long term.
In this article, you will find:
* What Is Real Wealth?
* Passive Wealth And Active Wealth
* Investment Strategies To Become Wealthy
* What Is Real Wealth?
Money is a symbol, but for many people, money = rich. Rich is loads of money, but wealth is totally different. You see, winning the lottery makes you rich, but it does not in no way make you wealthy!
Knowing the principles of wealth will always serve you. How is it that men such as Donald Trump can come to a point near to bankruptcy and still turn richer than before, and how others can actually go from poverty, no home, and no money, into some of the richest people on Earth? No doubt mindset has a big part to play, but it is also the principles as well.
The wealth principles are same as they always been. So knowing things like compound interest will serve you in relationships as well as with money. Knowing that more harmonious your interactions are with others, will allow you to have more harmony in the world; likewise good and regular investment into savings or other wealth building strategies and techniques will make you wealthy.
* Passive Wealth And Active Wealth
There are 2 types of wealth building principle. One is passive wealth and active wealth. One requires money, while the other requires time. So we have a general formula:
Passive Wealth = Money
Active Wealth = Time
Passive wealth could be thought of as a bank account that pays high interest. You add the money, and passively it grows. You can look back in 10 years and find that constant addition made you a nice growing wealth.
Active wealth can be thought of as something that needs your attention. More attention, the more likely the interest you receive. Yes a high yielding savings account needs your attention when adding money, however it is very small time needed. Your interest you receive is likewise small. In a home business, you need to add time, and effort, this investment ends up yielding people around 30% a year (at least in direct mail, I have found).
* Investment Strategies To Become Wealthy
You need to have a balance of both. Having passive wealth strategies is great; the only problem is that you need money. Everyone starts from nothing and has to grow there own personal wealth. The majority leaves the passive wealth strategy for decades, and likewise wealth is a foreign term!
When you utilize such an old wealth strategy as save 10% and get wealthy, you get exactly that, you get wealthy. When you have a business, and work to make it a success, you get wealthy.
There are so many strategies and tactics. There are real estate, high yielding savings accounts in Switzerland, and MLM. There are HYIP programs that say they will make you wealthy, and of course the stock exchange. They all need to be known by you, you need to create a strategy based on your needs. And remember to always add to them.
DEE
There are so many actions which you can take today, which will enable you to live a financially abundant future or not. Simple actions can make you wealthy now and in the long term.
In this article, you will find:
* What Is Real Wealth?
* Passive Wealth And Active Wealth
* Investment Strategies To Become Wealthy
* What Is Real Wealth?
Money is a symbol, but for many people, money = rich. Rich is loads of money, but wealth is totally different. You see, winning the lottery makes you rich, but it does not in no way make you wealthy!
Knowing the principles of wealth will always serve you. How is it that men such as Donald Trump can come to a point near to bankruptcy and still turn richer than before, and how others can actually go from poverty, no home, and no money, into some of the richest people on Earth? No doubt mindset has a big part to play, but it is also the principles as well.
The wealth principles are same as they always been. So knowing things like compound interest will serve you in relationships as well as with money. Knowing that more harmonious your interactions are with others, will allow you to have more harmony in the world; likewise good and regular investment into savings or other wealth building strategies and techniques will make you wealthy.
* Passive Wealth And Active Wealth
There are 2 types of wealth building principle. One is passive wealth and active wealth. One requires money, while the other requires time. So we have a general formula:
Passive Wealth = Money
Active Wealth = Time
Passive wealth could be thought of as a bank account that pays high interest. You add the money, and passively it grows. You can look back in 10 years and find that constant addition made you a nice growing wealth.
Active wealth can be thought of as something that needs your attention. More attention, the more likely the interest you receive. Yes a high yielding savings account needs your attention when adding money, however it is very small time needed. Your interest you receive is likewise small. In a home business, you need to add time, and effort, this investment ends up yielding people around 30% a year (at least in direct mail, I have found).
* Investment Strategies To Become Wealthy
You need to have a balance of both. Having passive wealth strategies is great; the only problem is that you need money. Everyone starts from nothing and has to grow there own personal wealth. The majority leaves the passive wealth strategy for decades, and likewise wealth is a foreign term!
When you utilize such an old wealth strategy as save 10% and get wealthy, you get exactly that, you get wealthy. When you have a business, and work to make it a success, you get wealthy.
There are so many strategies and tactics. There are real estate, high yielding savings accounts in Switzerland, and MLM. There are HYIP programs that say they will make you wealthy, and of course the stock exchange. They all need to be known by you, you need to create a strategy based on your needs. And remember to always add to them.
DEE
Nov
30
Filed Under (Finance) by wealth
Tim Jensen asked:
Wealth management can be referred to as an advanced discipline relating to advice in terms of investment which incorporates specialist monetary services and financial planning. The main objectives are providing families dealing with services in retail banking, legal resources, investment management, and taxation advice goals to sustain and grow long-term wealth. Monetary planning can help the individuals who are accumulating wealth or have already done so.
Wealth management can be exemplified through self-governing advisors or huge corporate entities such as Citigold of Citibank and the other extensions regarding services relating to retail banking designed for focusing on customers dealing with retail worthy of high nets. Customers of such type are likely to be categorized as ‘upper retail’ or ‘mass affluent’ clients owing to net worth of theirs, potential products owned by them from bank, assets of their under management, and many other segmentation methods.
Banks create exclusive services, branches, and other advantages for retaining or attracting the customers who can earn more profits in comparison with the customers detailing with retail banking. It should, however, be noted that clients of wealth management cannot be termed as ‘Private Banking’ clients as they do not justify the criteria of services of banking provided by private banks.
Background
The term ‘Wealth Management’ traces its origin in the 90s in the United States through Insurance Companies, banks, and Broker Dealers. The evolution of wealth management traces to high-net worth monetary consulting for people who happen to be topmost clients of any of the firms, to high level private banking which makes provisions for different kinds of investment, bank products, and insurance. With the passing of Glass-Steagall Act in the year 1999, monetary firms have been able to make arrangements for all the 3 services from a single office.
With emergence of wealth management in the form of professional service, along with career opportunity, educational programs like AAFM, i.e. American academy of Financial Management certified by CWM and Chartered Wealth Manager plan are arranging for modified wealth management training to individuals and corporations alike. Wealth Management is used to serve the affluent community, along with Chartered Monetary analysts, certified managers of wealth, Public Accountants, government-licensed lawyers, insurance professionals, etc.
Criteria for various countries
In the US, only CPAs and lawyers possess the license provided by government for providing advice related to tax or legal matters on complicated wealth management, tax law, estate planning, retirement, or even other legal matters like divorce or business management.
In Australia, the rules regarding wealth management are such that only those advisers who qualify under PS 146, i.e. Policy Statement no.146, outlined under Financial Services Reform Act of the year 2001, administered and governed by ASIC, i.e. Australian Securities Investments Commission are entitled to provide advice regarding financial products to the retail clients.
Job profile
People engaged in the wealth management generally work for brokerage firms, investment banks, accounting firms, law firms, trust departments, consumer banks, or portfolio management and investment firms. Smaller ones like registered advisors might also provide broad array regarding services pertaining to family and office.
Products dealt with in wealth management include stock trading and stocks, investments linked with equity, derivatives and products relating to structured investment, foreign exchange, unit trusts and mutual funds, investments and management of property, etc. Alternative investments with respect to wealth management include art, wine, precious metals, etc.
BO
Wealth management can be referred to as an advanced discipline relating to advice in terms of investment which incorporates specialist monetary services and financial planning. The main objectives are providing families dealing with services in retail banking, legal resources, investment management, and taxation advice goals to sustain and grow long-term wealth. Monetary planning can help the individuals who are accumulating wealth or have already done so.
Wealth management can be exemplified through self-governing advisors or huge corporate entities such as Citigold of Citibank and the other extensions regarding services relating to retail banking designed for focusing on customers dealing with retail worthy of high nets. Customers of such type are likely to be categorized as ‘upper retail’ or ‘mass affluent’ clients owing to net worth of theirs, potential products owned by them from bank, assets of their under management, and many other segmentation methods.
Banks create exclusive services, branches, and other advantages for retaining or attracting the customers who can earn more profits in comparison with the customers detailing with retail banking. It should, however, be noted that clients of wealth management cannot be termed as ‘Private Banking’ clients as they do not justify the criteria of services of banking provided by private banks.
Background
The term ‘Wealth Management’ traces its origin in the 90s in the United States through Insurance Companies, banks, and Broker Dealers. The evolution of wealth management traces to high-net worth monetary consulting for people who happen to be topmost clients of any of the firms, to high level private banking which makes provisions for different kinds of investment, bank products, and insurance. With the passing of Glass-Steagall Act in the year 1999, monetary firms have been able to make arrangements for all the 3 services from a single office.
With emergence of wealth management in the form of professional service, along with career opportunity, educational programs like AAFM, i.e. American academy of Financial Management certified by CWM and Chartered Wealth Manager plan are arranging for modified wealth management training to individuals and corporations alike. Wealth Management is used to serve the affluent community, along with Chartered Monetary analysts, certified managers of wealth, Public Accountants, government-licensed lawyers, insurance professionals, etc.
Criteria for various countries
In the US, only CPAs and lawyers possess the license provided by government for providing advice related to tax or legal matters on complicated wealth management, tax law, estate planning, retirement, or even other legal matters like divorce or business management.
In Australia, the rules regarding wealth management are such that only those advisers who qualify under PS 146, i.e. Policy Statement no.146, outlined under Financial Services Reform Act of the year 2001, administered and governed by ASIC, i.e. Australian Securities Investments Commission are entitled to provide advice regarding financial products to the retail clients.
Job profile
People engaged in the wealth management generally work for brokerage firms, investment banks, accounting firms, law firms, trust departments, consumer banks, or portfolio management and investment firms. Smaller ones like registered advisors might also provide broad array regarding services pertaining to family and office.
Products dealt with in wealth management include stock trading and stocks, investments linked with equity, derivatives and products relating to structured investment, foreign exchange, unit trusts and mutual funds, investments and management of property, etc. Alternative investments with respect to wealth management include art, wine, precious metals, etc.
BO
Nov
24
Filed Under (Finance) by wealth
Steven Miller asked:
Wealth creation involves a slew of different concepts that can only contribute positively to your life. In the hustle and bustle of a fast lifestyle, people seem to forget the different methods that make individuals successful. For some people, they just lose the perspective to apply the different success methods. When people lose focus and tend to view the small details as part of their success pattern, then the goal loses its value. That is why it is important not to forget the different personal concepts that govern wealth creation.
Having a Wealthy View
Financial abundance and wealth creation is a real and tangible idea. But there is a critical condition to it. In order to grasp the ideas of wealth creation, one must take the view of the rich and the wealthy. To have a wealthy view is to have the mindset of a millionaire.
Wealth creating mindset sees the world in a different light. That fundamental principle allows successful people to adapt to different problems while finding fresh methods to attack the blocks that hinders them from achieving their financial goals. They find optimism when an ordinary optimist says no. They also find encouragement in defeats. Most importantly, they find opportunities when it is most invisible. The key to create wealth is therefore to master personal concepts to develop a wealthy perspective.
Where most people find nothing, wealth creation entails finding value in things. However, the most successful wealth creators not only find value. Instead, they create it! In order to create or increase one’s value, wealth creators increase their own individual value first. Wealth creators realize that in order to succeed, one must always exceed even their own expectations. An adaptive mindset that creates value wherever he goes will find himself very important element in a successful enterprise. .
Wealth creation also entails seizing opportunities. In leadership terms, we call it initiative. Individually, we can call it being proactive. A proactive person finds things to do when others see it as free time. They do not wait for opportunities to bite them. Instead, they come biting at opportunities. Once you become a proactive person, you will suddenly find that opportunities come at you at a much faster rate, giving you way to create more wealth.
If you do not follow your passion, wealth creation is not fun. Wealth creation is hard enough of a process. If you feel that these activities are routine and boring, you will be gasping for air before you get halfway there. The most successful people will usually tell you that they love what they are doing. They will even go far as saying that they will do the things that they love even though they won’t get paid for it. Once we find our passion, everything becomes easy and you will be on the top of the wealth creation chain in no time.
Saving is involved in wealth creation, and that means foregoing what we can spend now for later. While the concept of “delayed gratification” seems easy, only a few people can heartily apply it. Delaying gratification allows us to see into the future and believe that there is a better value for happiness if you save gratification. With the savings compounded over time, wealth is created. Removing instant gratification from our habits will ensure that money always goes wherever they need to go.
Finally, creating wealth involves moving forward. Improving oneself in every aspect and knowing that are different ways to be a better person is a mindset that will help people in the long run. As they say, Rome is not built in a day. We must learn to account each small action and find ways to improve ourselves.
Wealth Creation is not an exercise or a method. Instead, it is a revamp of your current lifestyle to a life that produces a sense of accomplishment. This way we are able to move forward feeling very confident. Wealth Creation is a journey not only of our economic standing but also of our overall happiness.
ELISHA
Wealth creation involves a slew of different concepts that can only contribute positively to your life. In the hustle and bustle of a fast lifestyle, people seem to forget the different methods that make individuals successful. For some people, they just lose the perspective to apply the different success methods. When people lose focus and tend to view the small details as part of their success pattern, then the goal loses its value. That is why it is important not to forget the different personal concepts that govern wealth creation.
Having a Wealthy View
Financial abundance and wealth creation is a real and tangible idea. But there is a critical condition to it. In order to grasp the ideas of wealth creation, one must take the view of the rich and the wealthy. To have a wealthy view is to have the mindset of a millionaire.
Wealth creating mindset sees the world in a different light. That fundamental principle allows successful people to adapt to different problems while finding fresh methods to attack the blocks that hinders them from achieving their financial goals. They find optimism when an ordinary optimist says no. They also find encouragement in defeats. Most importantly, they find opportunities when it is most invisible. The key to create wealth is therefore to master personal concepts to develop a wealthy perspective.
Where most people find nothing, wealth creation entails finding value in things. However, the most successful wealth creators not only find value. Instead, they create it! In order to create or increase one’s value, wealth creators increase their own individual value first. Wealth creators realize that in order to succeed, one must always exceed even their own expectations. An adaptive mindset that creates value wherever he goes will find himself very important element in a successful enterprise. .
Wealth creation also entails seizing opportunities. In leadership terms, we call it initiative. Individually, we can call it being proactive. A proactive person finds things to do when others see it as free time. They do not wait for opportunities to bite them. Instead, they come biting at opportunities. Once you become a proactive person, you will suddenly find that opportunities come at you at a much faster rate, giving you way to create more wealth.
If you do not follow your passion, wealth creation is not fun. Wealth creation is hard enough of a process. If you feel that these activities are routine and boring, you will be gasping for air before you get halfway there. The most successful people will usually tell you that they love what they are doing. They will even go far as saying that they will do the things that they love even though they won’t get paid for it. Once we find our passion, everything becomes easy and you will be on the top of the wealth creation chain in no time.
Saving is involved in wealth creation, and that means foregoing what we can spend now for later. While the concept of “delayed gratification” seems easy, only a few people can heartily apply it. Delaying gratification allows us to see into the future and believe that there is a better value for happiness if you save gratification. With the savings compounded over time, wealth is created. Removing instant gratification from our habits will ensure that money always goes wherever they need to go.
Finally, creating wealth involves moving forward. Improving oneself in every aspect and knowing that are different ways to be a better person is a mindset that will help people in the long run. As they say, Rome is not built in a day. We must learn to account each small action and find ways to improve ourselves.
Wealth Creation is not an exercise or a method. Instead, it is a revamp of your current lifestyle to a life that produces a sense of accomplishment. This way we are able to move forward feeling very confident. Wealth Creation is a journey not only of our economic standing but also of our overall happiness.
ELISHA
Oct
18
Filed Under (Finance) by wealth
Max Ng asked:
Creating wealth is a way to gain financial freedom quickly. Based on my understanding of the Rich Dad’s series by Robert Kiyosaki, the rich people create wealth. For example, the rich people start a company and get it listed on the stock exchange. The shares of a start up company are not really valuable. But the company manages to be listed in the stock exchange, the value of the shares suddenly shot up.
Another way to create wealth is writing options. I can write contracts to sell or buy shares at a particular price that is valid for a period of time and sell the contracts for money. In that sense, I am creating money out of a contract.
But exactly what is involved in the process of creating wealth? So far I only know that I can create wealth by starting a company and getting it listed because I read about it. If I do not understand the concept of creating wealth, then there is no way I can be creative to find other ways to create wealth.
Thus, I decide to find out more about wealth creation. After a while, I finally manage to gain a little understanding in wealth creation. That is after I have attended a course on mind training. This course is supposed to help me to understand how my mind works so that I can be more in harmony with myself and relate better to other people.
To explain what I have understood so far, there is a need to understand what is money. Money is usually in a form of notes or coins. But have you ever wonder what is money? To a baby, a $1000 notes is just a simply a piece of paper to play with. He does not attach any value to it. Also, a coin is simply a piece of metal alloy toy. He does not have the concept of money at all.
Since I was once a baby, how come now I see these specially printed notes and coins as money and not just as papers and metal alloys? Apparently somewhere along my life, my perception of the specially printed notes and coins has changed. I have attached value to these printed notes and coins.
Changing my perception alone is not enough to make the specially printed notes and coins valuable as money. Other people must perceive the same set of specially printed notes and coins as money as well. For example, I can design and print my own notes and coins. I can treat these notes and coins as money. But if other people do not see them as money, then I will not be able to use my own notes and coins as money.
The situation changes if other people perceive the notes and coins designed by me as money. The notes and coins that are specially designed by me are now valuable. In that sense, I have created wealth from nothing.
That also explains why counterfeit money works. Counterfeit notes and coins essentially are just papers and metal alloys. But these fake notes and coins are designed in such a way that they resemble real notes and coins. Thus, people are misled to perceive the counterfeit money as real money.
Please note that I am not asking you to counterfeit money or commit any crimes here. Personally, I am against criminal activities. What I am trying to point out here is that the key to wealth creation is the ability to change the perceptions of other people.
For example, why does people buy lottery tickets? A lottery ticket essentially is just a piece of paper with a unique number printed. A piece of paper with a unique number printed is essentially a worthless piece of paper as perceived by people. How to create wealth from this piece of worthless paper? It just needs an idea to change people perception. In this case, by packaging and selling it as a chance to win a large sum of money, people perceive it as something valuable and thus willing to spend money to buy it.
In conclusion, I can create wealth from ideas, papers or anything as long as I change the perception of other people. To change the perception of other people, I will require selling skills to sell people the idea that it is valuable. Thus, Robert Kiyosaki highlights selling skills as an essential skill to achieve great wealth in the Rich Dad’s series. Like it or not, I will have to take the first step to learn how to sell so as to achieve financial freedom.
* DISCLAIMER *
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
ELVIN
Creating wealth is a way to gain financial freedom quickly. Based on my understanding of the Rich Dad’s series by Robert Kiyosaki, the rich people create wealth. For example, the rich people start a company and get it listed on the stock exchange. The shares of a start up company are not really valuable. But the company manages to be listed in the stock exchange, the value of the shares suddenly shot up.
Another way to create wealth is writing options. I can write contracts to sell or buy shares at a particular price that is valid for a period of time and sell the contracts for money. In that sense, I am creating money out of a contract.
But exactly what is involved in the process of creating wealth? So far I only know that I can create wealth by starting a company and getting it listed because I read about it. If I do not understand the concept of creating wealth, then there is no way I can be creative to find other ways to create wealth.
Thus, I decide to find out more about wealth creation. After a while, I finally manage to gain a little understanding in wealth creation. That is after I have attended a course on mind training. This course is supposed to help me to understand how my mind works so that I can be more in harmony with myself and relate better to other people.
To explain what I have understood so far, there is a need to understand what is money. Money is usually in a form of notes or coins. But have you ever wonder what is money? To a baby, a $1000 notes is just a simply a piece of paper to play with. He does not attach any value to it. Also, a coin is simply a piece of metal alloy toy. He does not have the concept of money at all.
Since I was once a baby, how come now I see these specially printed notes and coins as money and not just as papers and metal alloys? Apparently somewhere along my life, my perception of the specially printed notes and coins has changed. I have attached value to these printed notes and coins.
Changing my perception alone is not enough to make the specially printed notes and coins valuable as money. Other people must perceive the same set of specially printed notes and coins as money as well. For example, I can design and print my own notes and coins. I can treat these notes and coins as money. But if other people do not see them as money, then I will not be able to use my own notes and coins as money.
The situation changes if other people perceive the notes and coins designed by me as money. The notes and coins that are specially designed by me are now valuable. In that sense, I have created wealth from nothing.
That also explains why counterfeit money works. Counterfeit notes and coins essentially are just papers and metal alloys. But these fake notes and coins are designed in such a way that they resemble real notes and coins. Thus, people are misled to perceive the counterfeit money as real money.
Please note that I am not asking you to counterfeit money or commit any crimes here. Personally, I am against criminal activities. What I am trying to point out here is that the key to wealth creation is the ability to change the perceptions of other people.
For example, why does people buy lottery tickets? A lottery ticket essentially is just a piece of paper with a unique number printed. A piece of paper with a unique number printed is essentially a worthless piece of paper as perceived by people. How to create wealth from this piece of worthless paper? It just needs an idea to change people perception. In this case, by packaging and selling it as a chance to win a large sum of money, people perceive it as something valuable and thus willing to spend money to buy it.
In conclusion, I can create wealth from ideas, papers or anything as long as I change the perception of other people. To change the perception of other people, I will require selling skills to sell people the idea that it is valuable. Thus, Robert Kiyosaki highlights selling skills as an essential skill to achieve great wealth in the Rich Dad’s series. Like it or not, I will have to take the first step to learn how to sell so as to achieve financial freedom.
* DISCLAIMER *
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
ELVIN
Sep
01
Filed Under (Finance) by wealth
Sean Rasmussen asked:
There’s an age-old rule of thumb that is well-known in circles of wealth creation; the 80/20 rule. In effect, the 80/20 rule just proves something you probably already know, but recognizing the 80/20 rule serves to liberate individuals interested in creating wealth, helping them to move on to bigger and better things.
The 80/20 Rule In Wealth Creation
What is the 80/20 rule? It’s a way of understanding the distribution of wealth; a way to put wealth-holding in perspective.
The 80/20 rule in wealth creation is this:
- 80% of the people in the world make 20% of the money; in other words, in terms of wealth distribution, a scant 20% of the wealth in the world is divided amongst 80% of the world’s population - and in gross disproportions at that.
- 20% of the people in the world make 80% of the money; in other words, in terms of the distribution of wealth, a whopping 80% of the money in the world is controlled by a miniscule 20% of the population.
Many exerts in the wealth creation field will refer to this rule not as the 80/20 rule, but as the 90/10 rule. That’s because they believe the distribution of the world’s wealth to be even more disproportionate, with 90% of the money in the world being controlled by a mere 10% of the world’s population.
This hardly seems fair, and in fact there is little fair about it. But as long as there are free markets, there is money that can be made by that 80% of the population, and those percentages certainly can change.
Tipping The 80/20 Scales
Realistically, then, what can the average person do to make money and create his or her own wealth? Is this even possible? Or are these percentages set in stone, incapable of changing?
Of course there is opportunity to change, at least for those in the “free” world. Average men and women the world over can educate themselves and learn the ways to make money, to build wealth and financial freedom of their own. But they have to take the initiative.
There are excellent wealth creation programs online (and off) for building personal wealth. Sure, there are scams, too, but there are a number of proven, successful programs for creating wealth that have made regular men and women in many nations rich - free from the stresses of the working life, stripped of the confines of the “rat race”. It does take a little effort to study these programs and decide upon a winning equation for financial success that will work for the individual, but assuming that the right financial wealth-creating program has been identified, there is more for the successful wealth builder to do.
The successful wealth builder puts forth a passionate effort.
Not a careless effort; not a haphazard effort; not a half-hearted effort; a true effort. Successful wealth builders the world over have one thing in common (and it doesn’t matter what kind of system for making money he or she is using). The ones who get rich set their minds on a goal, and steel themselves to the work that must be done. They do what it takes, and it pays dividends.
The one thing everyone likes to say relative to wealth creation is that “if it sounds too good to be true, it probably is”. While this may apply to get-rich schemes, it does not apply across the board to wealth creation. Wealth can be made as long as the person is willing, and is passionate about their goals. Great money making opportunities are out there, and they do not have to cost a lifetime’s worth of savings or consume every waking minute of the day (although admittedly, success is proportionate to effort expended, so long as that effort is expended efficiently).
To sum it up, the 80/20 rule is not written in stone. It can be changed. It can be 50/50. But as long as people believe that they cannot create wealth of their own, and as long as people are resigned to putting out the effort, the 80/20 rule, or something very close akin to it, will endure.
GERALD
There’s an age-old rule of thumb that is well-known in circles of wealth creation; the 80/20 rule. In effect, the 80/20 rule just proves something you probably already know, but recognizing the 80/20 rule serves to liberate individuals interested in creating wealth, helping them to move on to bigger and better things.
The 80/20 Rule In Wealth Creation
What is the 80/20 rule? It’s a way of understanding the distribution of wealth; a way to put wealth-holding in perspective.
The 80/20 rule in wealth creation is this:
- 80% of the people in the world make 20% of the money; in other words, in terms of wealth distribution, a scant 20% of the wealth in the world is divided amongst 80% of the world’s population - and in gross disproportions at that.
- 20% of the people in the world make 80% of the money; in other words, in terms of the distribution of wealth, a whopping 80% of the money in the world is controlled by a miniscule 20% of the population.
Many exerts in the wealth creation field will refer to this rule not as the 80/20 rule, but as the 90/10 rule. That’s because they believe the distribution of the world’s wealth to be even more disproportionate, with 90% of the money in the world being controlled by a mere 10% of the world’s population.
This hardly seems fair, and in fact there is little fair about it. But as long as there are free markets, there is money that can be made by that 80% of the population, and those percentages certainly can change.
Tipping The 80/20 Scales
Realistically, then, what can the average person do to make money and create his or her own wealth? Is this even possible? Or are these percentages set in stone, incapable of changing?
Of course there is opportunity to change, at least for those in the “free” world. Average men and women the world over can educate themselves and learn the ways to make money, to build wealth and financial freedom of their own. But they have to take the initiative.
There are excellent wealth creation programs online (and off) for building personal wealth. Sure, there are scams, too, but there are a number of proven, successful programs for creating wealth that have made regular men and women in many nations rich - free from the stresses of the working life, stripped of the confines of the “rat race”. It does take a little effort to study these programs and decide upon a winning equation for financial success that will work for the individual, but assuming that the right financial wealth-creating program has been identified, there is more for the successful wealth builder to do.
The successful wealth builder puts forth a passionate effort.
Not a careless effort; not a haphazard effort; not a half-hearted effort; a true effort. Successful wealth builders the world over have one thing in common (and it doesn’t matter what kind of system for making money he or she is using). The ones who get rich set their minds on a goal, and steel themselves to the work that must be done. They do what it takes, and it pays dividends.
The one thing everyone likes to say relative to wealth creation is that “if it sounds too good to be true, it probably is”. While this may apply to get-rich schemes, it does not apply across the board to wealth creation. Wealth can be made as long as the person is willing, and is passionate about their goals. Great money making opportunities are out there, and they do not have to cost a lifetime’s worth of savings or consume every waking minute of the day (although admittedly, success is proportionate to effort expended, so long as that effort is expended efficiently).
To sum it up, the 80/20 rule is not written in stone. It can be changed. It can be 50/50. But as long as people believe that they cannot create wealth of their own, and as long as people are resigned to putting out the effort, the 80/20 rule, or something very close akin to it, will endure.
GERALD
Jul
12
Filed Under (Finance) by wealth
Sean Rasmussen asked:
There is no shortage of opportunities for making money on the internet at least not according to the many vendors selling wealth creation programs and “get-rich-quick” schemes. Truth be told, there is very good money to be made with legitimate financial wealth building programs, but picking a winner is not always an easy task. So how can you find a good program online to help you create wealth? Is it even worth trying?
Finding The Best Wealth Creation Programs Online
Start by determining your financial goals and the amount of time and effort that you can put into your wealth creation efforts. Then, look for financial wealth-creating programs that meet (or better, exceed) the following criteria; good wealth creation programs should be:
- Simple; the parent program should have expended an effort of their own in designing the system, so that you do not have to recreate the wheel to start making money. Their efforts should be ongoing as well so that you can continue to grow within the program and make more money as you learn more.
Proven; it’s nice to be a standout, but you shouldn’t be your wealth creation system’s only success story. Look for testimonials and references of those who’ve paved the way before you. It’s even better if you can find one whose authors have learned from experience i.e., used their experience to formulate their money making strategy.
Fresh; there should be something unique about your system of financial wealth creation so that you know you are paying for some actual meat in the program, not just shelling out for a program that claims to create wealth but in reality only spurts back more of the same old same old. The method doesn’t have to be entirely new, but it should at least present things in a new or more understandable way, or things few others have brought forth before.
- Credible; you should be able to research the founders of your online wealth creation system to learn more about them, besides what they have to say about themselves. Find people who will vouch for them, or look for accounts of their success across the web.
- Supportive; you are buying into a system for creating wealth because you need some help to organize your efforts and some educational direction. Your wealth creation system should offer continuing support not just to get you started, but to lend advice as you get into the program and later as your experience warrants expansion into other facets of the wealth creation program.
- Reliable; in short, the system you choose to help you make money should never leave you hanging. The system should be reliable and proven, with plenty of examples of success, and the tools, support, and resources the wealth creating program provides should be dependable as well.
Regardless of the program’s intent, a good program for building financial wealth will be all of these things and likely more. You should never feel shy about demanding great things from your wealth creation system; their express goal and function is to help you make money. If it looks like one is interested only in taking your money, best to move on so that you can get the best return on your wealth creation investment possible.
DARWIN
There is no shortage of opportunities for making money on the internet at least not according to the many vendors selling wealth creation programs and “get-rich-quick” schemes. Truth be told, there is very good money to be made with legitimate financial wealth building programs, but picking a winner is not always an easy task. So how can you find a good program online to help you create wealth? Is it even worth trying?
Finding The Best Wealth Creation Programs Online
Start by determining your financial goals and the amount of time and effort that you can put into your wealth creation efforts. Then, look for financial wealth-creating programs that meet (or better, exceed) the following criteria; good wealth creation programs should be:
- Simple; the parent program should have expended an effort of their own in designing the system, so that you do not have to recreate the wheel to start making money. Their efforts should be ongoing as well so that you can continue to grow within the program and make more money as you learn more.
Proven; it’s nice to be a standout, but you shouldn’t be your wealth creation system’s only success story. Look for testimonials and references of those who’ve paved the way before you. It’s even better if you can find one whose authors have learned from experience i.e., used their experience to formulate their money making strategy.
Fresh; there should be something unique about your system of financial wealth creation so that you know you are paying for some actual meat in the program, not just shelling out for a program that claims to create wealth but in reality only spurts back more of the same old same old. The method doesn’t have to be entirely new, but it should at least present things in a new or more understandable way, or things few others have brought forth before.
- Credible; you should be able to research the founders of your online wealth creation system to learn more about them, besides what they have to say about themselves. Find people who will vouch for them, or look for accounts of their success across the web.
- Supportive; you are buying into a system for creating wealth because you need some help to organize your efforts and some educational direction. Your wealth creation system should offer continuing support not just to get you started, but to lend advice as you get into the program and later as your experience warrants expansion into other facets of the wealth creation program.
- Reliable; in short, the system you choose to help you make money should never leave you hanging. The system should be reliable and proven, with plenty of examples of success, and the tools, support, and resources the wealth creating program provides should be dependable as well.
Regardless of the program’s intent, a good program for building financial wealth will be all of these things and likely more. You should never feel shy about demanding great things from your wealth creation system; their express goal and function is to help you make money. If it looks like one is interested only in taking your money, best to move on so that you can get the best return on your wealth creation investment possible.
DARWIN
Jun
24
Filed Under (Finance) by wealth
Sean Rasmussen asked:
One of the top reasons people never get started in investment for financial wealth creation is that they don’t think they have any cash to get started with. For the truly determined, though, finding wealth creation start-up money is easier than anyone might think.
Can You Free Cash For Wealth Creation?
Utilities, car payments, gas, food, rent, mortgage, insurance, medical bills, education bills, credit card debt, loan payments, these are just a few of the places your monthly income might be going. Surely, there are plenty more. It’s not too hard to see, then, that finding any “extra” money lying around is a challenge, a near impossibility! At least that’s probably how it seems to you at the end of the month. Just as surely, you recognize the importance of savings and investment; no doubt you know that you’ll never enjoy financial freedom if you keep going the way you are going. You might not even be able to retire before you die!
The fact remains however that most people have far more access to investment money than they think; that’s money they could be using to make more money and create wealth. And what investment experts and accomplished wealth creators find is that if you can show those people where they can access money, they are eager to get started on the path to wealth creation.
Self-made millionaire and wealth creation author Jamie McIntyre is all too familiar with this conundrum; one of his primary goals in helping people succeed at wealth creation is to first identify the access they have to money that they could be using to better themselves and others. In his book, What I Didn’t Learn In School But Wish I Had, Jamie identifies possible sources of investment income that regular people, in almost any country of the world, could be accessing to give them the means they need for wealth creation.
Seven Sources Of Wealth Creation Investment Money
Savings - pay yourself before you pay anyone else; it is the golden rule to wealth creation, and it is what every wealthy person does. Anyone can save money, and it is essential that you find a way to save some of your weekly income. If you are doing better than most and already have a stash saved up, use that money to make you more money.
Selling possessions - most of us have way more than what we really need to stay clothed, housed, and fed. This is a big reason many of us do not have anything saved up! If you are willing to sacrifice some of your extra belongings, or compromise a little on your short-term lifestyle, you could sell off some of the excess to get the money you need to invest in wealth creation.
Taxes - yes taxes are as sure as death, but overpaying taxes just eats up your free cash. If you are overpaying, or not taking advantage of all the tax breaks and credits due to you, you are throwing out money you could be using to create wealth.
Make more money - increasing your income is an easy way to bring in more wealth creation investment money. You can achieve this in one of several ways, such as taking on a second job, increasing your value in your current job, taking on more hours, setting up a second source of income
Other People’s Money “OPM”, it’s a money source a lot of people don’t want to look at because it means asking of others to further yourself. But you should consider that you could make money for your investors, too by sharing the wealth. And Other People’s Money doesn’t have to mean borrowing from Mom, Dad, or Grandma (but it might); OPM can be loan money, too.
Home equity - if you have a good deal of equity in your home, you have a virtually instant source of wealth creation investment money. With an aging mortgage and property appreciation, you might have a lot more equity in your property than you think.
Other People’s Equity - chances are your parents or grandparents will have property equity even if you don’t. Your parent’s equity is a great source of money for your investments.
These financial sources of investment money hold true for almost every citizen of the world. From Australia to America, there is plenty of access to investment money for the committed and creative! To find your investment money, you just have to take a hard look at what money you can really access, and the places you might already have it that you’ve neglected to consider.
CLEMENT
One of the top reasons people never get started in investment for financial wealth creation is that they don’t think they have any cash to get started with. For the truly determined, though, finding wealth creation start-up money is easier than anyone might think.
Can You Free Cash For Wealth Creation?
Utilities, car payments, gas, food, rent, mortgage, insurance, medical bills, education bills, credit card debt, loan payments, these are just a few of the places your monthly income might be going. Surely, there are plenty more. It’s not too hard to see, then, that finding any “extra” money lying around is a challenge, a near impossibility! At least that’s probably how it seems to you at the end of the month. Just as surely, you recognize the importance of savings and investment; no doubt you know that you’ll never enjoy financial freedom if you keep going the way you are going. You might not even be able to retire before you die!
The fact remains however that most people have far more access to investment money than they think; that’s money they could be using to make more money and create wealth. And what investment experts and accomplished wealth creators find is that if you can show those people where they can access money, they are eager to get started on the path to wealth creation.
Self-made millionaire and wealth creation author Jamie McIntyre is all too familiar with this conundrum; one of his primary goals in helping people succeed at wealth creation is to first identify the access they have to money that they could be using to better themselves and others. In his book, What I Didn’t Learn In School But Wish I Had, Jamie identifies possible sources of investment income that regular people, in almost any country of the world, could be accessing to give them the means they need for wealth creation.
Seven Sources Of Wealth Creation Investment Money
Savings - pay yourself before you pay anyone else; it is the golden rule to wealth creation, and it is what every wealthy person does. Anyone can save money, and it is essential that you find a way to save some of your weekly income. If you are doing better than most and already have a stash saved up, use that money to make you more money.
Selling possessions - most of us have way more than what we really need to stay clothed, housed, and fed. This is a big reason many of us do not have anything saved up! If you are willing to sacrifice some of your extra belongings, or compromise a little on your short-term lifestyle, you could sell off some of the excess to get the money you need to invest in wealth creation.
Taxes - yes taxes are as sure as death, but overpaying taxes just eats up your free cash. If you are overpaying, or not taking advantage of all the tax breaks and credits due to you, you are throwing out money you could be using to create wealth.
Make more money - increasing your income is an easy way to bring in more wealth creation investment money. You can achieve this in one of several ways, such as taking on a second job, increasing your value in your current job, taking on more hours, setting up a second source of income
Other People’s Money “OPM”, it’s a money source a lot of people don’t want to look at because it means asking of others to further yourself. But you should consider that you could make money for your investors, too by sharing the wealth. And Other People’s Money doesn’t have to mean borrowing from Mom, Dad, or Grandma (but it might); OPM can be loan money, too.
Home equity - if you have a good deal of equity in your home, you have a virtually instant source of wealth creation investment money. With an aging mortgage and property appreciation, you might have a lot more equity in your property than you think.
Other People’s Equity - chances are your parents or grandparents will have property equity even if you don’t. Your parent’s equity is a great source of money for your investments.
These financial sources of investment money hold true for almost every citizen of the world. From Australia to America, there is plenty of access to investment money for the committed and creative! To find your investment money, you just have to take a hard look at what money you can really access, and the places you might already have it that you’ve neglected to consider.
CLEMENT
