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building wealth

Wealth

What Do Billionaires Have In Common?

Did you know that there are currently 937 billionaires in the world? Compared to the 6 billion people that live on our planet, that’s an extremely small number. So what do these folks seem to have in common? According to an article on globeinvestor.com, most billionaires share 5 common traits: entrepreneurism, frugality, vision, risk-taking, and patience.

So billionaires are entrepreneurs with a vision who are not afraid to take risks, but are patient enough to know when it’s the right time to make their move, and even though they may be rolling in the dough, they don’t spend their money foolishly. That doesn’t sound so hard, so why do so few of us end up to be billionaires, or even millionaires for that matter?

August 17, 2010

Book Reviews

Get Wired For Wealth – The Recession Proof Money Makeover

Wired For Wealth: Change the Money Mindsets That Keep You Trapped and Unleash Your Wealth Potential by Brad Klontz, PSY.D., Ted Klontz, PH.D., & Rick Kahler, CFP.

Wired for Wealth is a book that will make you think hard about your beliefs about money, and it will help you to confront any unhealthy beliefs that are detrimental to your financial goals. The main idea in the book is that we all have money scripts, whether we are aware of them or not, and many of them have been passed down to us from our families. If left unchecked, these money scripts can create problems and prevent us from reaching our potential.

In order for us to develop positive money scripts, we need to be honest with ourselves about what we really believe about money.

The book is full of real-life stories of people whose money scripts passed down from their families significantly impacted their own behaviors, and ultimately their entire life direction. The interesting thing is that most people are not even aware of their money scripts, but it’s essential to become aware of them in order to promote positive change.

February 13, 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

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

How To Measure Wealth?

“I will be rich if I strike the top prize in this week’s lottery!” That seems to be the most usual exclamation from fellow workers looking for a quick way to escape the rat race.

Thinking back, is wealth really measured by how much money you have in the bank?

A lot of us usually think that wealth is signified by the possession of a lot of money or owning a lot of luxurious items. We have often associated wealthy people with the luxurious house, big car, expensive jewelry they owned or the posh restaurant, which they dine in, etc.

For Robert Kiyosaki however, the concept of wealth is defined simply as “The number of days you can survive going forward if you stop working today”. It is not measured in dollars and cents, but by the number of days, which you do not have to work! It is not your conventional definition, which you might have expected but I must say that this is very logical and common sense!

Based on my understanding of Robert Kiyosaki’s definition of wealth and the concept of income and expenses, I see the amount of money one has, formed just part of the wealth equation. We also need to look at the other part of the equation, which is the outflow of money, i.e., expenses. The number of days we can survive if we don’t work is dependent on the amount of money we have and the amount we spend.

August 15, 2009

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