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
Lincoln Stretch rentals Alsip ..There is no need to use the many middleman websites... Read More
As you sit in traffic, inching along between irate drivers,... Read More
Financial freedom is the power to do what you will... Read More
Have you ever had that feeling where you could not... Read More
Simple tips on saving can very often make quite a... Read More
Endowments and endowment mortgages have received a lot of bad... Read More
Money is probably the most challenging thing for many people... Read More
Many people have a false understanding of what it actually... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
There are few things in life that are more stressful... Read More
Is the ghost of "Money Past" haunting you? Do you... Read More
Let's begin easing you out of the pits. I mean,... Read More
The idle are a peculiar kind of dead that cannot... Read More
What is "The Commodity of Kings""Power is simply "the ability... Read More
"Ooooooh," you may say, "I could NEVER be good at... Read More
Financial independence is having the freedom to support yourself through... Read More
In today's unpredictable global economy, you obviously never know what... Read More
When I look around at all of my friends, and... Read More
We talked recently about the wealth formula:Spend less than you... Read More
The fact is that most people continue to work for... Read More
Results from a new tool developed by UK based firm,... Read More
Very few people whom I know are familiar with the... Read More
Almost all of us go to work everyday and do... Read More
It's no secret that the market goes UP...the market, goes... Read More
Like I said, If you are poor and on social... Read More
Western Springs shuttle limo ..When I was a student in London, I had a... Read More
What is your attitude towards having wealth? Do you believe... Read More
There once was a hawk, ferocious and swift. He was... Read More
Everyone dreams of early retirement. The idea of no longer... Read More
Want to be one of the lucky ones on the... Read More
Do you ever get this in your email box: Find... Read More
You may think you have to be an entrepreneur to... Read More
At any time in history, no matter what the current... Read More
It is sometimes pitful how many projects are never born... Read More
To budget, to have a budget and to be on... Read More
Turn to the year 1999, a couple of friends sitting... Read More
Most accountants, financial planners and wealth-building experts agree that there... Read More
As you know, we're now well and truly in theInformation... Read More
Giving and ReceivingIt seems that people generally find it easy... Read More
Offshore strategies may or may not be right for you.... Read More
It's the beginning of a brand new year: a time... Read More
Have you wondered why financial experts only tell you certain... Read More
E-currency is very popular on the Internet today. People use... Read More
I'm constantly reading articles on the internet and in financial... Read More
As a woman Netpreneur, I sat down via e-mail with... Read More
Almost all of us go to work everyday and do... Read More
Not Enough Money?I believe that most people haven't got enough... Read More
As someone who loves to shop, enjoys holidays and owns... Read More
Results from a new tool developed by UK based firm,... Read More
Financial planning often gets a bad rap. Part of the... Read More
Wealth Building |