Home
>
Wealth Building
>
Building Wealth: A Wealth Building Strategy Is More Than Simply Diversifying Your Investments

Building Wealth: A Wealth Building Strategy Is More Than Simply Diversifying Your Investments

Wealth - an abundance of values. Each of us determines what is or is not of value to us. He or she may not be wealthy even though they may have a great deal of money because they have no honor, no happiness.

I measure wealth not only by the numbers but by holding it up against my happiness level at any given time. Building wealth is fine, but most people assume you are interested in building wealth to become secure, stable, and happy in life.

Assuming you are happy, just not thrilled with your current portfolio returns, you should know that there is more to diversification beyond what the average person thinks is all you need to know.

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.

"Wealth is when small efforts produce large results. Poverty is when large efforts produce small results."

Financial wealth involves the ownership of multiple money producing assets that flow to you, not money draining assets that flow from you.

Investing is a fundamental way to build financial wealth. The sooner you start to successfully invest the more opportunity your investments have to grow.

In order to build wealth there are four simple things you must do:

1) Control your spending.

2) Pay off debts that don't produce some form of income to you.

3) Create or acquire wealth building assets or income streams.

4) Acquire the knowledge to learn how to leverage your TIME and your ENERGY.

Try seeing "diversification" in an entirely different light. As an example, David Futrelle, Money Magazine, wrote a great piece on this entitled "Build Wealth in any Market."

In it he discusses that diversifying investments in your own country's stock market may not be diversified enough.

"More than half the world's stocks are traded outside the U.S. We think it makes sense to keep at least a quarter of your stock money in foreign equities." David Futrelle, Money Magazine, August 12 2004.

Futrelle goes on to give tips on diversification. This is a good exercise in building wealth in the unstable world of stock investing.

Additionally, think of how you can diversify the following sets of capital:

1) Human Capital (your job and career),

2) Physical Capital (your house and other possessions) and

3) Financial Capital (those stocks, bonds and cash).

All these components should work together in your wealth building portfolio.

Diversifying financial assets alone will not offer you enough protection without understanding what kind of diversity offers true protection against avoidable losses.

C.C. Collins is a Financial Planning Advisor and Author of "Scientific Wealth Strategies" at http://wealthscientist.com Find more information at http://wealthscientist.com

Woodstock Chicago limo .. Lockport Chicago limo O’Hare

In The News:

Security researchers have found a fake app pretending to be a version of the messaging app Telegram, and hackers are using the app to spread malware.

Meta recently announced it will cease working with third-party fact-checking organizations to flag misleading posts on Instagram, Facebook and Threads.

Scientists have developed a floating solar still device that is capable of harnessing the sun's energy to purify seawater and withstanding harsh maritime conditions.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech expert Kurt “CyberGuy" Knutsson says business email compromise scams are a serious threat, as shown by Teresa W.'s near loss of thousands of dollars.

Big tech coming in 2025 includes solar umbrellas, AI TVs, smart earbuds and crazy robots. Tech expert Kurt “CyberGuy" Knutsson gives his take on the wonders revealed at CES 2025.

Tech expert Kurt “CyberGuy" Knutsson provides two methods to restore your contacts for iPhone and Android devices.

FBI warns that criminals are using generative AI to exploit individuals with deceptive tactics. Kurt “CyberGuy" Knutsson explains their tactics and how to protect yourself from them.

Tech expert Kurt “CyberGuy" Knutsson says hackers are embedding dangerous code in Chrome extensions to steal your data.

Google Maps Location Sharing is now built into Android settings; no need for Maps settings. Tech expert Kurt “CyberGuy" Knutsson discusses the welcome improvement for Android users.

Not all apps out there offer legit virtual private networks, according to Kurt the CyberGuy. He explains how to keep your information safe.

Apple's Image Playground transforms text prompts into images or animations in seconds, brining a world of creativity to the palm of your hand.

NASA's Ingenuity helicopter, which flew on Mars in April 2021, became the first aircraft to achieve powered, controlled flight on a planet other than Earth.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Thieves who have iPhones can usually detect a hidden AirTag in vehicles they are attempting to steal, and an RFID wallet may not help you.

Genmoji, the latest addition to Apple's Apple Intelligence suite, uses artificial intelligence to generate customized emoji based on text descriptions.

It's easy to find yourself swamped in unread emails. Here are a few simple steps to archiving them and clearing out some of your digital clutter.

Keep your retirement plan safe from data brokers selling your personal information. Kurt the CyberGuy explains how to protect yourself and your retirement.

Turo faces scrutiny after tragic incidents involving rented vehicles, raising questions about security measures and regulatory frameworks.

A Chinese company has developed a spherical, 276-pound law enforcement robot that has been chasing down criminals at impressive speeds.

Here are some powerful online sleuthing tricks you can use to check the credibility of a website, see old pictures of places you've lived and even learn more about your neighbors.

Beware scam calls: Avoid unknown numbers and protect your personal information. Tech expert Kurt “CyberGuy" Knutsson talks about the increasingly common scam.

Tech expert Kurt “CyberGuy" Knutsson helps you crush your New Year's goals with these 12 apps to help you stay on track and succeed.

There are many untapped safeguards and tips you can learn to take your Wi-Fi knowledge to the next level, technology expert Kim Komando shares her tricks.

VPNs ensure privacy; antivirus stops malware. Tech expert Kurt “CyberGuy" Knutsson says both are essential for online security.