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
efficient cleaning crew Lake Forest ..Perhaps the primary message of Rich Dad, Poor Dad is... Read More
Here's the truth: I have read hundreds and hundreds of... Read More
"My people are destroyed for lack of knowledge." Hosea 4:6... Read More
Not Enough Money?I believe that most people haven't got enough... Read More
This 4,000 acre sale (now a marina and resort town... Read More
"Ooooooh," you may say, "I could NEVER be good at... Read More
A surprising number of readers want to know "Can a... Read More
There are many of us who are working on our... Read More
For most of us, the idea of retiring simply on... Read More
There is perhaps no more important decision than to take... Read More
In light of the dominant mindset overshadowing the market these... Read More
There once was a hawk, ferocious and swift. He was... Read More
No matter what markets you serve; what products you sell;... Read More
It's no secret that the market goes UP...the market, goes... Read More
Whenever we read about building wealth or even attend a... Read More
If you're wondering where to create passive income, then you... Read More
In my last article on Creating Residual Income I mentioned... Read More
It's the beginning of a brand new year: a time... Read More
Almost all of us go to work everyday and do... Read More
Articles on 'How to make money' come a dime-a-dozen. How... Read More
Are you setting the right money goals?Most people believe having... Read More
This retirement account is so new and unique that you... Read More
The inability to come up with the necessary cash when... Read More
It is sometimes pitful how many projects are never born... Read More
Ever think about how eating all those fast food meals... Read More
green cleaning service Deerfield ..Here's the truth: I have read hundreds and hundreds of... Read More
Retirement Planning the Offshore Way Why do so many of... Read More
I recently came across startling figures about the average American's... Read More
There are many forms of investing online. While I can... Read More
Turn to the year 1999, a couple of friends sitting... Read More
If you don't have discipline then walk away from the... Read More
The idle are a peculiar kind of dead that cannot... Read More
Whenever we read about building wealth or even attend a... Read More
Imagine being able to steal untold millions of dollars in... Read More
This new way is catching on around the world. People... Read More
"Ooooooh," you may say, "I could NEVER be good at... Read More
There is no questioning that the amount of unclaimed money... Read More
No one has complete control over their thoughts. But with... Read More
There could not be a better time to mull over... Read More
Is accumulating wealth as easy as following a 3-step plan?... Read More
It all begins with a simple calculation.You are home on... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
Planning for the undesired, accidents and possible unknowns in life.... Read More
Some people in this world are thinking that their poor... Read More
Many of us do not consider the underlying belief system... Read More
Parents must give serious thought to protecting their family through... Read More
You've been thinking that your financial life could probably be... Read More
In my last article on Creating Residual Income I mentioned... Read More
Have you ever asked yourself what your highest income producing... Read More
At any time in history, no matter what the current... Read More
Wealth Building |