We all want to be wealthy and also want to maintain the wealth we create with efforts.
Unfortunately, very little is taught in schools, colleges and university as to how to create and maintain wealth. So, we all need to learn it by ourselves.
Most of the people keep studying, and then start earning and spending all they earn. The result is they never have sufficient wealth to feel comfortable and to have the required confidence to face crises/emergencies. With the result they always live a fearful life and this reduces their imitative, and chances of progress.
Why all the awards of Nobel price are won by the developed countries/ because, in developed country, a common person has been able to maintain the required standard and life style, and is hence able to concentrate more on new researches/innovation.
A poor person keep struggling life to make meals, house available, getting children married etc and thus ends life in hi/her own basic needs, which also many a time remain unfulfilled. This is because the rat of creating and maintain wealth is not thought and not thought of by most of these people.
Once we start earning, then comes the saving and then investment, and creation of wealth. It is said that, the person who is able to save something from his net income 9after taxes0, shall be rich one day, while on the other hand, a person even if earning huge, if not saving anything, can never be rich.
A small saving can become a very handsome amount over a long period, and can make one rich and wealthy.
Once a person start saving, then comes the main question -how and where to invest this saving so that, it grows adequately with time, and beats the inflation and other money weakening elements.
The possible ways to invest are many, but the most trusted are four as under:
1.Real estate.
- Stocks.
- Gold and silver.
- Home business.
Real estate: this is one of the best kind of investment, as it is ultimately, the basic need of every human being, and is generally in more demand than supply. Therefore, any investment made in real estate wisely in time is bound to give handsome return over a long period. The catch is-do not over invest because it may not be possible for you to afford, and you may be required to sell it soon at loss. Invest as you can easily afford for a long time. This is a long time investment game say-5-10 or even more years. It is seen that people who had wisely invested in real estate have made big fortune.
- Sticks: the growth of any country is though stock market. All the money, invested ultimately go to some business. More the production more are the profits, and more are the rewards to investors. A careful study, expertise in stock market investment, can make one quite wealthy. One needs to keep some investment in trusted companies stocks to reap high yields.
- Gold and silver: these tow metals have shown their good worth in last many centuries. they are considered best investment to beat the inflation. They are the real money. The currency may fall in value but, investment in these real money, never falls in value. The rise may be less in specific period, but in long run they both give handsome yield.
- Apart from above,, one who is really keen to build wealth must have some sort of business. A true business is one in which you keep on earning money even if you stop working. This can be like getting royalties on books written, rental income from real estate, commission of the products already sold, etc.
The real diversification must have the investment in all the four above areas. the proportion one may decide depending upon the age, requirement, the risk taking capacity etc. But investment made in these four is real diversification and is bound to make one wealthy and enable him/her to maintain the wealth created.
How to Manage Wealth Once You Have Accumulated It
The dream of many is to be wealthy. Having enough money to do whatever they want when they want. The fact of the matter is many have acquired wealth, and in a short period of time have lost it all. It’s one thing to have wealth, but it’s another thing to be able to manage the wealth you have. One thing that a lot of people fail to realize is that money will work for you, when and if you will allow it to work for you. The purpose of money is to benefit you.
No one with a head on their shoulders would take their life savings and bury it, and expect it to grow. Money can and will multiply for you but you first have to water it. And how do you do that? The answer to that is simple, you have to invest your money. If you have nineteen dollars and every day for nineteen days you spend a dollar you cannot expect to come back on the twentieth day and find money for you to spend. This may sound simple but it’s a mistake that many people make every day. They are spending more than they have.
Your money needs a place to grow, remember that the purpose of money is to increase your financial stability. The money you posses today needs a venue in which to work on your behalf, so that fifteen, twenty years from now as you’re closer to retirement, you will be further ahead financially.
If you’re not a conscious minded individual when it comes to your finance, you’re literally playing Russian roulette with your retirement years. Most people understand the importance of having their own money put aside for retirement. But there are those who believe that the government will be there to take care of them in their later years. The fact of the matter is, with the direction the economy is headed, government assistance in place now may not be the type of government assistance available in years to come, that many people are assuming will be accessible to them.
It is vital that one recognizes the importance of managing wealth once it is accumulated. Building wealth and maintaining wealth goes hand in hand. You would not take a bucket that has a slow leak and fill it up with water. So why would you spend time accumulating your wealth just to sit back and not give it any room to grow. In order to maintain wealth you need to put your money to work, so as to amass you a profitable return.
