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.
With a successful wealth building strategy comes the understanding of what kinds of diversification offer you the protection you need from taking great losses in the short and long term. 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.
The major problem about following any of these systems is that it takes time. Anyone who has truly succeeded in these models did not make their "fortunes" or supposed fortunes overnight. It took a lot of hard work and it took time. Should you really want to build wealth , the first key to success is keeping the main thing the main thing. Whatever your choice is for a business model you have to keep it the main focus of your thoughts, feelings and actions.
The wealth building process includes not just a business, but it includes the managing and direction of your money. Some people believe that just because they have a business even if the income is good or great, that they don't necessarily need to focus too much attention on the management of it. Well that in truth is the fastest way to eventually undue everything that you worked so hard for.
Some people boast as to how much money they made from some venture, this makes others feel bad, that they did not get the piece of the pie. Wealth is energy, people will either vibrate with it or not. You can build your own empire, provided that you have the end in mind. You want a million dollar lifestyle then you must build it. How? There is only one way and that is to keep the main thing (your business) the main thing (not be distracted by other things or claims). The success of many businesses is created through longevity. That is an undeniable fact. Any company to be on the top rung of the ladder has brought itself there through persistence and planning. Success is not luck.
You have heard over and over again, build a business that is the road to wealth and independence. Let me mention something here. There are those who have made a living at victimizing you and then telling you, the failure is you not the business. The truth is that your failure may be part of it, the other most likely is the lack of support or the "lies' you are being fed. Most of these guru's in marketing did not make their fortunes overnight. It took some time and a lot of thought, into their campaigns and promotions. Most of them are based on how they can take advantage of you. More on this later.
Land 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 best growth you can with low downside risk.
Most people's typical first experience of using Other People's Money is when they take on a mortgage to buy their home. Typically, their initial down-payment combined with their contract of employment that demonstrates their ability to produce future income is enough for them to secure a mortgage loan against home. Unfortunately your home is not an asset, well it is, but it's the bank's asset as they are making income from the loan advanced, not you.
If you can get a bank to advance you a mortgage loan so as to purchase an investment rental property (an asset) whereby you get to retain what remains of the rental income after you pay the mortgage, then you have used Other People's Money to buy and asset to produce income. In order to secure this loan you need to demonstrate to the bank that you are a safe bet.
They will typically want to see that you have at least 20% of the purchase price as a down-payment and sufficient net income being generated by this asset and other sources to ride out any changes in interest rates, rental void periods etc.
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