May 5th, 2011 by achi
Let’s look at four different strategies for building wealth:
1. You can invest in the stock market, but be conservative in nature. Spend years developing a solid portfolio of stocks that pay dividends. These dividends are the way you can fund your retirement. These actions are not attractive, but you can usually have enough money to come and be comfortable. It will take many years to reap the dividends paid by people who have a level of comfort.
2. Another investment option is to live off the interest of public services, government bonds and some corporate bonds. Of course, depending on risk, returns are very different for each type, and only pay the initial premium or interest, no change over time. While stock dividends could increase (or decrease) the rate of investment will always be the same as when you bought the bonds.
Continue reading ‘Strategies for Building Wealth’
October 6th, 2010 by achi
This article discusses the concept of financial freedom and the most effective way to achieve it, based on the path that most millionaires today took to amass their fortunes.
To achieve financial freedom the first to do is take better understand the concept of it, this concept varies for different people, but a commonly accepted concept is as follows:
“Financial freedom is a situation where passive income (income generated without a need to work actively) a person charged style that you want to view, i.e. when a person can live the lifestyle you want without having to work or rely on others for money.”
Therefore, if we want to achieve financial freedom, our aim should be sufficient assets to generate sufficient passive income to pay for the lifestyle we want, without us having to work (unless we do it by choice and not necessity) or depend on others.
The secret of wealth
Wealth is achieved by creating or acquiring assets that we generate passive income, i.e. income generated without you having to work actively.
Examples of assets that generate passive income are: actions that generate dividends, rental properties, businesses where we have to get involved personally to work, multilevel, copyrights, books, music or software, franchising fees, etc.
But to save enough money to allow us to create or acquire assets that we generate passive income, you may first need to generate earned income, i.e. income earned in the active job.
So to achieve financial freedom may at first be necessary to have a job that we generate enough revenue so that we can save enough money and then invest in the creation or acquisition of assets that we generate passive income.
My first business
However, a better alternative to find a job that we generate good income, is to set up a business, for which we could start a business that does not require further investment, for example, an Internet business, a business advisory, or an MLM business.
Or in any case, if we do not have enough capital to set up the business we want, we may request a loan, find investors, or partner with other people.
It may seem that today starting a new business is a complicated task, because it seems that all the business ideas were taken, and those that remain seem to be too much competition.
However, if we pay attention to business magazines, will always find entrepreneurs who have recently started their business, and they are slowly starting to be very successful with them.
And if you look a little more, we see that these new businesses are common business, but businesses are treated different, unique or novel, or, in any case, are traditional businesses, but offer something different to consumers.
So start your own business is not really difficult, just a matter of being creative, and seek a new business is unique, innovative, offering something different, that satisfies a need, and to improve living conditions people.
Saving culture
Achieving financial freedom is not just about generating good income, but most of all, a matter of saving these revenues to good use then give them (acquire assets that we generate passive income).
So the next step to achieve financial freedom is to save the money we win with our employment and / or business.
Saving means spending as little as possible, which does not mean we have to live an austere life, but we always try to spend as little, and to avoid unnecessary costs, while giving us some treats from time to time to foster our culture of wealth.
But saving also means allocating a portion of proceeds to a stock savings will be used later to create or acquire assets that we generate passive income, money in this bag should not be spent, but only be used to create or acquire these assets.
My first million
Once you’ve saved enough money, it’s time to really start our journey towards financial freedom through the creation or acquisition of assets that we generate passive income.
For example, as we mentioned, we could start to buy stocks that generate dividends, rental properties, businesses where we do not get involved personally to work, etc.
It should be noted that to begin acquiring these assets is not necessary that we should have saved a lot of money, but we could get the money by borrowing or fail us in any case, partnering with others.
Then, little by little, the money we will generate our assets, we will invest in the creation or acquisition of additional assets, to have a good portfolio of investments based on passive income.
And finally, once we have enough assets to generate sufficient passive income to the lifestyle we want, but we have more to work or depend on other people, then we say that we have finally achieved financial freedom.
May 11th, 2010 by admin
Failing to act on an idea can paralyze the path to success, so a few Silicon Valley kids decided to start while their still too young to shave.
Three boys, Aryan Taheri, 10, Alec Boyer, 11, and Boyer’s brother Shaun, 13, recently launched Santa Clara-based Calsunergy, a company based on the creation of renewable energy products. The young entrepreneurs hope to sell low-cost, high-efficiency solar panels and win first prize at the California Clean Tech Open competition.
These kids are the embodiment of the pioneering spirit shown by entrepreneurs who throw caution into the wind and act on their ideas. Their can-do attitude at such a young age is remarkable, and there’s little doubt these kids aren’t just going to sit back and see where the world takes them. They are creating their own futures.
The book “How Come That Idiot’s Rich and I’m Not,” highlights how actions like the ones taken by the Silicon Valley trio are necessary on the road to success. It covers several wealth-building topics, including the art of taking action on an idea like the eco-friendly start-up created by the California boys.
This book illustrates that it takes more than having the best idea, an Ivy League education or catching the breaks to become rich. It centers around taking action, whether you’re a Harvard graduate or a high school dropout.
You can have brilliant vision, a tremendous concept and infallible business plan, but if you are consumed with fear to act on these, you’ll never become wealthy. You can analyze and prepare for executing a plan till you’re blue in the face. But you have to eventually act and not fear failure. As Leonardo Da Vinci once said, ‘Life is pretty simple: You do some stuff. Most fails. Some works. You do more of what works.’
You have to acknowledge that fear is part of the process and that overcoming it is easier than one thinks. It is also important to “take care of yourself first” by not overextending your financial, emotional, or physical well-being.