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Wealth

You Can Make A lot Of Money And Still Be Poor

It doesn’t seem to matter how much money a person earns, if they don’t work on developing effective money management skills, they can end up bankrupt. I was reading an article on Yahoo! that talked about seven professional athletes who squandered away their money on all kinds of gadgets and doodads rather than investing it wisely.

Although it may seem like it would be easier to manage your money if you had a lot of it, it’s obvious from reading the article that having more money isn’t the solution. Instead, what it takes is a disciplined approach; creating a budget, paying yourself first, controlling your spending, and most importantly, not spending more than you earn. Although people who make a lot of money may not have to be as strict with their spending, they still need to follow the basic principles of effective money management; otherwise they could end up like Scottie Pippen and Lenny Dykstra.

April 20, 2010

Wealth

Ways To Increase Your Net Worth

What is your net worth?

To put it simply, if you were to sell everything you owned and pay off all your debts, the amount that you would be left with is your net worth. Purchasing assets and paying off debts are both ways you can increase your net worth.

Purchasing Assets

Not everything you purchase will help you build your net worth. For example, purchasing a new car doesn’t increase your net worth as it quickly depreciates in value. You may have paid $20,000 for it but within a year or two it could be worth four to five thousand dollars less.

If you want to build your net worth, you will need to purchase assets that will ultimately increase in value over time such as works of art, rare coins, handmade Persian rugs, etc. Investing in real estate is another way to build up your net worth, even if you do need to take on more debt in order to do so.

Paying Off Debts

Another way to build your net worth is to pay off your debts including car loans, student loans, credit cards, and your mortgage. It’s always best to pay off high interest debt first, as well as debt where the interest is not tax deductible.

February 1, 2010

Wealth

You Don’t Want to Be a Millionaire!

If I ask you what you want out of life, your first answer will probably have something to do with money — lots of it. You want to win big at the casino. You want to hit the lottery when the jackpot is at $200,000,000. You want big money! Right?

Wrong!

Think about it. If your ultimate goal in life is to be rich, what are you going to do when you achieve that goal? Remember — a goal is the final destination of a journey. When you reach your goal, you’re at the end of your journey.

January 22, 2010

Wealth

The Four Things You Need To Know About Wealth Creation

Experiencing a life of effortless bliss, abundance and prosperity is not out of the realm of fictional books. You to deserve to have it all and why not. Who would in their right mind want to have the stress, struggles and anxiety associated with financial concerns through lack. So how do we increase the wealth and abundance in our life. Here are four things you need to know that will increase your wealth and abundance.

1. Have a millionaire mindset. If you aren’t yet wealthy then you just don’t believe it is possible. What you focus on is what will be created and confirmed by your circumstances and surroundings. If you focus on your debt, bills, lack or poverty then that is exactly what you will get. If you focus on opportunities, breakthroughs, financial overflow or prosperity then that too is what will be created in your world. It might sound airy fairy but what have you got to lose. Give it a try, focus your thoughts on abundance every day all the time.

2. Discipline your money. Don’t let money control you. Why be at the mercy of money when you should be the one in control. Why have bills overdue, credit cards maxed out and debt overflowing in your life. You’ll only create a situation where money starts to dictate your standard of living and what you can and can’t do. Instead put your money to work for you. Decide on what you will and won’t spend and discipline your money to work through investing it in growth assets like shares or property. If you aren’t in a position to do that right now then at least put it into a high interest account or start a regular savings contribution to a managed fund.

3. Be grateful. Living a life of gratitude is a key to living in abundance and wealth. When you are grateful for what you have then you start to create an environment that appreciates and attracts more of that which you want. Gratitude is a powerful emotion that when harnessed can be immensely powerful. Start a gratitude journal and write down the things you are grateful for each day.

4. Visualise your way to Wealth. Visualizing your wealth before you go to bed each night will reinforce in your mind what you want to create for yourself. Write out a goal or affirmation of where you want to be in a few years time and start to visualize you on the day that it happens. Are you celebrating, where are you and who are you sharing the moment with. Be as creative and as detailed as you can as the more real it is for your mind the more it will work to attain it for your reality.

You have within you the power to create abundance and wealth or the power to create poverty. So why not get on track today and design a future that you want.

December 23, 2009

Wealth

Pay Yourself First

What does it mean to pay yourself first? Rather than taking care of your bills and expenses each month andthen seeing if you have any money left over to invest and save, paying yourself first means you put aside some money for saving/investing as soon as you get paid! If you do that, then you know you will be able to tuck some money away for retirement as well as build up an emergency fund.

An easy way to pay yourself first is to set up an automatic withdrawal from your checking account on the same day you get paid. That way you won’t even miss the money because it will be like you never had it in the first place.

Even if you are on a tight budget it is important to pay yourself first. It may seem impossible on paper, but you need to do it. In Rich Dad Poor Dad, Robert Kiyosaki talks about a time when he and his wife had almost no money but they still insisted on paying themselves before paying their bills. Their bookkeeper at the time thought they were nuts. But look at them now! They have successfully learned what habits contribute to building wealth.

If you’re not already paying yourself first, I recommend that you take some time to look at your budget and set up an automatic withdrawal each month to start saving and investing for the future, even if all you can do is put aside $25 per month. It’s better than nothing, and as you progress you can increase the amount you invest.

August 21, 2009

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