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Anyone with a desire to be wealthy, rich, or comfortable needs to follow a few steps. The first step is to create a plan of attack. An attack on poverty, on risk and on conventional thinking. Then they actually need to follow through with their plan. The plans vary person to person. For instance, older people can’t take the same risks as young people. They don’t have the time to spare. Nor would it be easy for them to replace lost money. But anyone can choose an investment plan that will work for their situation.

To create wealth you clearly need assets. An asset is not only something with value, but something that will put money in your pocket on a regular or planned basis. The assets you acquire can be purchased, like a dividend bearing stock or an interest bearing bond. They can be created, like residual income producing assets such as a product, song, book or network marketing system or even an insurance agents list of clients. By creating an asset instead of purchasing an asset, you will be able to build wealth in the fastest possible way because there is no capital investment. The capital you save can be used to create more assets. That is how a person gets rich. By using assets to buy or create more assets. You can earn an income for years to come from the same asset. The more assets you can build or buy, the wealthier you become as long as you reinvest your income into more assets.

Most assets you create become the fundamental elements of a business. The finest businesses to build into assets are the ones where you don’t have to work every day. If you take the day off, your asset is still producing an income for you. Real Estate offers this characteristic in many different ways, through residential properties, industrial properties and commercial properties to name a few. Other vehicles exist as well, such as insurance products, books, videos, audio CD’s, DVD’s and electronic files. Network marketing systems can create millionaires with their downlines. Podcasts and audio casts and any website can be an asset that can throw off income straight into your pockets.

Assets such as these also have another advantage. They create income that is taxed at a lower rate than any paycheck. The income earned on a paycheck is taxed at the highest rates. Income earned through portfolio or passive income is taxed at the lowest rates. There are no social taxes removed either. Social Security or Medicare is not taken from either passive or portfolio income. Expenses are deducted first as well, lowering your overall tax basis.

If you believe that you are incapable of creating an asset of your own, then you will be incapable. If you believe you can build as many assets as you want and actually get to work on building and creating assets, then you will become rich as long as you never quit on yourself. This is not a get rich quick scheme. It takes some time, but after any asset is in your portfolio it will begin to earn money for you. When reinvested into more assets your income will grow. When your assets produce more income than your expenses, congratulations, you are wealthy.

Matt Fox is a successful investor in the stock market, real estate market and in private deals with individuals and businesses. See his column, My market time at http://www.bizmaker.blogspot.com to learn more about the stock market and other investment vehicles.

Firstly, I do not like the term ‘broken family’. I think divorce is always horrible in one way or another, though often necessary. However, the ‘inevitable’ results of divorce can be reinvented. ANY wealth accumulated, even in the worst of marriages, should not go down the drain because a couple cannot stay together.

I’ve been divorced myself and I know the agony, the depression and the despair. I know the urge to get away from, cut all ties with someone, and create as much distance as is manageable. But if you own a home as a couple, please do anything necessary to take time and think before you go the traditional route - selling, often just to pay your attorneys.

The reason I’m writing this article is because in the past few years I’ve learned a lot about investment - especially in real estate. I think that it is the best investment to make, unless you are particularly in tune with stock picks.

Unlike the many infomercials that give ideas on buying a home, this article deals with KEEPING your home, married or not. I know it is possible for a couple, even when divorced, can attain a degree of financial freedom, years afterwards.

Many families have a major investment - their home. It seems it is typical in a divorce to sell the family home and split the funds realized from the sale. Many couples have pensions, and other investment plans to either liquidate or allow to mature for future sharing. I am less familiar with those.

Focusing on the family home, I recommend the following.

DON”T SELL!

Firstly, if it is possible, find an experienced paralegal who can explain all your state laws about divorce, marital settlements, et al, and then DON’T RUSH! If a family must divide quickly, and one spouse leaves the home, just be patient. Make an honest attempt to back up from the stress and emotions, just for a little while. A good paralegal will do your whole divorce, marital settlement, and parenting plans for a tenth of the price of an attorney. Don’t get SCARED. The law determines how everything will go, despite the variation on long and winding roads needed in getting there. Of course, some couples will have details that will require an attorney, and that is for each to decide.

But, back to the home…..look around and find a property management company with a good reputation in your area. Plan for the remaining family members to move out. Rent the home! Depending on where you live, that property will appreciate. Paying the property management company to rent, and manage the tenancies will relieve you of that stress. The divorce can proceed.

Why do I recommend this? Because your home will appreciate over the years. Why sell? If you can cover the mortgage, the taxes and the insurance with tenants, why sell? Perhaps at some point, whether it be lower interest rates or enough appreciation, you can re-finance and split that profit with your former spouse. It could pay for another home or college tuition, or anything in a family’s special needs. It could pay for any outstanding child support. It could pay for one or both spouses to go back to school. It is a SOURCE OF WEALTH.

A marriage is a legal contract. Just because you want to end it doesn’t mean you and your spouse cannot have a DIFFERENT legal contract, as co-owners of your property. If you cannot talk to your ex, get a third party to be a middle man. You can have a trust between you, with a trustee. There is always a way!

I had my divorce, custody care and marital settlement done for $1250 by a paralegal. If a home had been involved, it’s fate would have been part of the marital settlement. There would have been some additional expenses for a trust, or some other contract. Perhaps another $1500.00.

I do not mean to imply that anyone should not obtain legal advice about any of the above ideas. I just say: think about it. Everyone’s situation is different.

I hope this helps.

Dianne M. Buxton is a retired ballet dancer, choreographer and teacher who was exposed to real estate investment, better late than never. Currently she is starting an internet business, and also is writing screenplays with a creative writing partner, and last but not least, raising a brilliant and interesting son.

Before we address the issue at hand, let’s make sure that we are clear on the definition of financial freedom. Up until 4 or 5 years ago, I had a warped perception of financial freedom. I pictured it as a life of leisure with a couple million dollars in the bank. After taking on too many unnecessary risks trying to attain that goal, I stopped to rethink my definition. I realized that financial freedom doesn’t require millions of dollars. As long as you have enough to cover your yearly expenses and a method to replenish your coffers, you are there. That sounds sort of like a job. However, even using that as a definition only a few working people would meet the criteria. Most need a job and a few credit cards to make ends meet. I redefined it as follows:

Financial Freedom is freedom to focus on what is truly important to you and your family without having to trade time for a wage. It is enabled by a portfolio of income producing assets, managed by you, which generates sufficient income to cover your yearly expenses on an ongoing basis. It provides both time and money.

That is significantly different than my original definition, but much more achievable. It requires that your days be spent maximizing the return on your eBay business, rental properties or other assets. Unfortunately, it is no life of leisure. However, the intent is to generate your income in far fewer hours than the standard 9 to 5. If structured correctly the revenue will continue to come in while vacationing or on the golf course.

We have prepared our entire lives for the time for money swap. It is simply what responsible people do. You commit 40, 50 or 60 hours per week and the company commits to pay you for your efforts and in some cases extremely well. The concept of not exchanging your time for a wage is so foreign for most that financial freedom will never be seriously considered. Many will dream about it, but life will slap them back into reality. The few who choose to ignore life’s slap – must be willing to make the following three commitments.

1. Make time to become free. I submit that this is the number one reason why there are so few people that are financially free. Most are just too busy with life. Financial Freedom requires sacrifices and it begins with making a time commitment. Initially you will need time to study and eventually to implement your plan. The easiest place to find extra time is by reducing your number of hours of sleep each night. Start by reducing your sleep time by an hour. As your plan starts developing other items will lose their importance, freeing up more time for your plan. Before I left corporate America, I would put in a full 9-10 hours on the job and come home and work my plan for another 5-6 hours each night. One of the benefits of financial freedom is time to focus on what’s important to you and your family, but to receive that you must initially sacrifice some of your precious time.
2. Know your business. In preparation for your current career, you have spent years going to school and have attended seminars and training classes to attain additional expertise. Financial freedom requires a similar commitment. Unfortunately, there are no formal classes or degree programs. You must educate yourself and learn by doing. The lessons learned from a failed business deal or significant stock market loss is more valuable than any course attended or book read. There are three primary paths to financial freedom - real estate investing, small business ownership or trading markets (stocks, bonds, commodities and/or currencies). I have tried all three. Each venture has added significantly to my business knowledge repository. You must always be looking to learn. Seek out mentors. Pay your tuition to the school of hard knocks.
3. Buy Assets. Financial Freedom requires that you create passive income. That is income that does not come from wages or your active business participation. Rental property or dividend paying stocks are examples of assets that generate passive income. Your financial freedom plan involves mapping out strategies to add assets to your portfolio. Once you have enough passive income to cover your yearly expenses, you are free. All of our lives we have been told that our home, cars and boats are assets. Instead of arguing that point, I would like to introduce a new term “core-assets.” “Core-assets” are all items of value less non-income producing assets. Items such as your home, cars and boats unless used in a business are non-income producing. So, “core-assets” are only items that produce income such as rental property or a limousine. Financial freedom requires that your spending is focused on buying income producing or “core-assets.”

Financial Freedom is not jet-setting around the world living the life of leisure, but is having freedom to focus on what is truly important without having to trade time for a wage. It requires a serious commitment and is attainable when defined appropriately. Time for Money or Time and Money – it’s your choice.

About the Author

Michael Dawson recently said goodbye to a 20 year career in Engineering, Marketing and Sales to focus on living his dream of financial independence. He has since founded The Time and Money Group as vehicle to encourage others to do the same. The company’s mantra is ‘Why trade time for money … when you can have both.’ Sign up for their free weekly newsletter, where he and others discuss the different paths to financial freedom and offer insights for your successful navigation.

http://www.thetimeandmoneygroup.com

Make sure to read one of Dawson’s most popular articles: ‘The No-Brainer Investment Strategy to Double Digit Returns’

When Small Businessman Trevor Brunson came into my office it was a rainy day and he dripped puddles where he stood as we talked. As a mentor myself, it is not unusual for local business people to seek counsel about different issues they need help with. That rainy afternoon, I listened to the urgency in Trevors voice and what I told him became the basis for this article.

Trevor Brunson was a small developer who built speculative projects around the TriState area. Originally a builder, he recently graduated into development and made more money in 12 months than he has made in 5 years building projects for others.

His new role meant that he was the creative force behind the projects he made. He needed vision to see what others do not see. His job was to put himself in the shoes of the future purchaser of his 3 bedroom home designs and make choices that will appeal to the largest possible cross-section of the typical buyer in his market. Looking at a bare block of land, he had to envision value on behalf of this prospective future purchaser. For this reason I considered what he did speculative. Some would translate speculation as simply ‘guessing’ others would deem speculation as gambling.

I agree that there is an element of uncertainty and risk involved however the difference between gambling and speculation is the vital ingredient of ‘vision’ Risk can be controlled and negated to a point where it is negligible. It is this aspect of wealth building that is the main generator of success or failure.

When we take on an endeavour without too much capital behind us, we are in an excellent position. The naysayers call you under-capitalized, I call you failure proofed. I don’t like using platitudes lightly but necessity really is the mother of invention. It is the fountain head of vision. You have nothing to lose and the upside is big. A very good ratio.

As a wealth building system, having little money is no barrier to success. On that rainy afternoon 2 years ago, I gave Trevor Brunson a formula which he uses to this day. His business is real estate but this wealth building system can be applied to any endeavour you choose.

Here it is.

1. Create a reproduceable unit of value. (RUOV)

For any wealth building sysyem, this is always the first port of call. Identify a market demand and the value it seeks. Offer this value to the demand.

2. Create a system for mass production

Plan for a systemized manufacturing of the single unit of value. The velocity of your returns will be a quantum leap faster with a systemized production plan.

3. Identify and foster close links with main channels of distribution.

Knowing how to reach the above market, the demand that was uncovered. Where does the demand live? If your product is a newspaper, your demand will live at bus stations and train stations and news agencies. You have to take your unit of value to the demand, the demand will rarely seek you out.

If you would like to discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the following link to learn how you will begin compounding your capital right now. click
here to learn about the EasyCorporateMoney.com program Copyright Jack Reynolds 2007 Syndicated with rights to reprint, the only condition is you MUST print this author resource box as part of the article. You may not alter the point size or edit in any way.

The concept behind any form of wealth is creating income.
Are you satisfied with your current income? Probably not.
Have you ever wondered why this is so? A typical case,
shared often at seminars, is that of a person who has
constant challenges with money but disapproves of
accumulating wealth, implying that it is dirty and that it
spoils and changes people.

Further, this person is uncomfortable with people in
business who have more money and yet he or she can’t
succeed. What should such a person do? Clearly this person
is carrying around a mental image that says: ‘If you have
much money, you’ll be ruined by it and you don’t want that.
So, it is better to remain poor than seek wealth.’ The
consequence of such thinking is, not surprisingly, a lack
of money.

Get rid of these thoughts if you want to be wealthy
someday. The Law of Income says that wealth is first
created in the mind. A Wealthy Self-Image People who can’t
imagine themselves wealthy are not yet mature enough to
become wealthy.

Everything begins in the mind as a thought - life is a game
that is directed from between your ears. If you can’t ’see’
yourself with money, then your subconscious still doesn’t
have a clear picture of how to act and therefore cannot
help you get there.

In fact, whatever picture you hold of yourself in your
subconscious mind is the person your mind is busy ensuring
you are. If your self-image is one of a poor person or
someone ’struggling to get ahead,’ then that is who you
will be. Make sure you create and nurse positive pictures
of yourself.

Why You Are Not Wealthy Today? There are two reasons that
you don’t have as much money today as you desire:

1. You didn’t think about or plan for today before it
arrived. Had you been more aware, then, that you would
always need money and acted on that awareness in the past,
you would be wealthier today than you are right now. Why?
Because, you would have intentionally saved money, perhaps
even by making small sacrifices over the years or invested
money. Even small amounts, and would therefore have more
money today than you currently have.

Make a list of your expenses for one month; you’ll quickly
discover how many unnecessary things you buy and how much
you could therefore set-aside for tomorrow. If you want to
free yourself from financial troubles, then start putting a
portion of your money into a special account.

2. The work you have now isn’t bringing in enough money.
There are many ways to increase, even maximize, the
financial and non-monetary rewards you earn from your job.
Ridding Your Path of Obstacles The unfavorable financial
situation you are in usually comes from a very specific
challenge.

Those who do not have money have usually been taught to
believe that money is dirty or that it can’t be earned in
an honest way. So how will you find your fortune, if your
subconscious is being fed with things like, ‘All rich
people are dishonest and I don’t want to be like that.’?
What follows is clear, perhaps you believe that money
changes, even spoils people.

If you hold this to be true, wealth will elude you. You
have to be clear about the following fact: ‘Money itself
doesn’t mean anything - it’s just a piece of paper, a tool
that can be used to trade for material goods.’ Money is a
’stand-in’ for the things you want to buy. Does this mean
that all the things you buy are bad and rotten? If that’s
true, why do people desire new cars? Imagine your job pays
you ‘in cars’ instead of money - would you say now that
cars are bad and rotten?

Copyright © 2006

Abe Cherian is the founder of Multiple Stream Media, a company that helps online businesses find new
prospects and clients, who are anxious to grow their business fast, and without spending a fortune in marketing and automation. Free Home Business Tips.

Financial freedom eludes so many people these days who by all logical conclusions and observations should have obtained it. It’s commonly cited as one of the most important and sought after goals in life and yet is rarely attained. This article does not attempt to give you a magic formula for success but I do share with you the choices that made a difference to me and can, if you choose put you well on the path to freedom.

Consumption

You can choose to spend some or all of your money on “consumption” items. These include food, entertainment, holidays, housing, motor cars, hobbies, and so on. These are things we need to live on a day-to-day basis. They also consist of items that service the things we want and so improve lifestyle.

Investment

You can choose to spend some or all of your money on investment items such as revenue producing real estate, shares, interest bearing deposits, businesses that produce revenue, etc.

Consumption or investment

Two important factors need to be understood about the simple concepts of consumption and investment.

The first factor is that spending on “consumption” items results in reducing the total value of your assets (net worth). Spending on investment items aims to increase your net worth. The second factor is that you have choice. You can choose between spending on consumption or investment items.

Of course, the best spending patterns are those that aim to attain a balance between spending on consumption and investment items.

Choosing consumption or investment

You now know the difference between consumption and investment spending and that you can choose between the two.

All you need to do is to think before you spend. Consumption spending can contribute to your lifestyle (driving a new car is fun, even if it was bought on credit and has created a liability of three to five years of payments). Investment spending provides income and wealth.

Shades of Grey

There is, of course, some spending that is not clearly defined as consumption or investment.
Buying your own home is considered by many to be an investment. It isn’t! The purchase usually is financed and the repayments are a liability. The upkeep of a house costs money. There are rates and taxes payable on it. You do not get any revenue from it. If you plan to sell it in a few years to make a profit on its increased value, then it may be an investment. However if you have to buy another house to live in are you really any better off?

Investment spending is necessary for building wealth
In order to build wealth, some investment spending is necessary. The more that goes into investment spending, the bigger and quicker your wealth will grow. However, if too much goes into investment spending, and not enough into consumption, then lifestyle can become meagre. But you can choose.

Accumulation over time

Most people are not born rich. Certainly, some inherit wealth, but consequently may not appreciate it. A few win wealth in lotteries, but ironically, perhaps because they have not worked for it, or are not used to it, could end up squandering the temporary riches.

Everyone, however, has one thing in common. The same amount of time goes past for each of us, and at the same rate. How you employ that time is significant.

Imagine that at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and then by the time you reach 65, you would have accumulated over $70,000 without doing anything else.

If at the age of 21, you invested $1,000 at an average annual rate of return of 10%, and each month invested an additional $100, then by the time you reach 65, you would be a millionaire, without doing anything else.

If you did neither of these things, then the same time would pass, and you would not have accumulated any wealth.

These examples of investment, quite deliberately, use amounts of money that are affordable by most, and if spent on investment, rather than consumption, would probably not be missed.

In terms of investing, time is on your side.
Of course, you may not be 21 any more and you may wish to accumulate wealth at a faster rate. This is possible by increasing the amount invested, and the annual rate of return. It is not possible to systematically accumulate significant wealth (millions) without looking at a timeframe of several years (say 5 to 10). If you are trying to make more money in less time, then your objectives may not be realistic. Perhaps a lottery ticket, crossed fingers and large amount of luck could produce your desired result, but don’t hold your breath waiting.

The power of compounding

In the above examples there is an additional factor at work. The entire return was reinvested and participated in earning the same rate of return as the original investment. None of the investment return was withdrawn and spent on consumption items.

About the Author

Phil Wengier, VIC, Australia

More details about Successful Investing can be found here. Phil Wengier has been successfully investing in financial markets for over 30 years and is the owner of several companies. In particular, Saratoga Pty Ltd has been on the Internet since 1996 helping many who wish to discover how to invest safely and successfully. If you would like to subscribe to my Savvy Investor newsletter please click here

We’ve been talking about some guiding principles that will make you rich. Of course, we’re covering them quickly, but I’m trying to open your mind to a different way of thinking. As you read this, bear in mind that we live in a world where 95% of the people out there don’t do what I’ve told you. They end up working hard with nothing to show for it at the end of their lives. You don’t want that do you? You want to end up rich right?

Now, there is one more principle that I want to cover in this series. Without following this you simply won’t ever get rich. As I said before, you might make a lot of money, but you won’t get rich.

Let me ask you, why do you want to get rich? Really think about it. Could it be to get some financial pressure off your back? Would you just like an extra $100,000 in a bank account? I’ll bet you would.

You see most people spend everything they make. No matter how much money they make, they spend it. That’s why they want to make more money. They think it will solve their problem. It won’t. I know, you’re thinking, “Come on Bryan, If I’m making an extra $5,000 a month I won’t have any money problems”. This will be true for a little while. But, your spending habits will catch with you. A downturn in your business or job and all the sudden you have money problems again.

The good news is, by using this one principle you’ll certainly be rich. Here it is:

“Save 10 percent of what you earn”

Engrain this into your thinking. Above all else do this. Start today. Open a free account with http://www.ingdirect.com. It’s easy to do and they offer the best savings rates of any bank I’ve seen. Set it up to take 10% out of your pay automatically every week. Here’s why:

Why do you think the government takes taxes out of your paycheck? Why don’t they trust you to just pay them at the end of the year? What do they know that you don’t know?

I’ll tell you what they know: They know you’ll spend the money! They want to get paid before you spend it on a new big-screen TV.

Do yourself a favor. Pay yourself first. You’re more important than anyone else. You’re more important than Visa, Master Card, or a new computer. These things will take care of themselves. You’ll always find a way to pay them.

I can hear you now, “But Bryan I can’t save 10% I don’t even have enough money now”. You know something, everyone feels that way. But, I’ll give you a tip: You only have to get by for 4 weeks. After that you’ll never miss the money. I know you can’t believe this, but it’s true. That’s the magic of saving and paying yourself first.

Here’s another Tip: If you don’t build the habit now, it will be harder to build when you do start making more money. Do you really think it’s easier to save $1,000 a month out of $10,000? It’s not. It’s much easier to save $50 out of $500.

When you do this, the money will build up. Even just by working a regular job you’ll end up richer and richer as time passes. In fact anyone who simply did this, at any income level, would amass a fortune. If you think about it, it really seems silly that something so simple; something that takes 5 minutes to set up will make you rich. Nobody does it because they can let go of that 10%.

Start saving 10% of what you earn today. If you don’t do this, you’ll never get rich! When you do it, you’ll wonder how you lived your life any other way.

Bryan C. Fleming is the author of his blog http://www.BryanCFleming.com or http://bryancfleming.blogspot.com. Stop on by to check out more articles like this one.

We are always hearing save, save, save. But if you don’t have a reason to save, it isn’t likely you will.

Most people live paycheck to paycheck. Many people simply do not have the money to save. There just doesn’t seem to be enough money left over after paying the necessities.

And I’m not just talking about the lower-income groups. Often, those driving new cars, living in nice homes and wearing name brand clothes are barely making it by financially. They often have a harder time finding extra money than do those who make incomes below poverty level.

There are a lot of people that wear money well, yet they don’t really have any. Is that you? Are you caught in an endless cycle of wanting more and wanting better? Do you see that it just isn’t working for you?

Sit down and examine what your main goals are in life. I mean the really important financial ones. You may want to retire someday. Have you started saving? Do you want your children to go to college? Have you started saving? You might just want to be able to pay all of your bills? Have you started saving?

You get the hint — it’s all about the saving. I’m not going to go into how to save, you can research that later. Let’s talk about why you should save.

The number one reason to start saving right now is for emergencies. Things happen. People pass away. People get hurt at work. People get laid off. We have accidents. We have cars break down, washing machines stop working and sometimes even disasters hit our homes.

With an emergency savings, you are cushioned from the financially ruin. You can make ends meet until you are able to figure something out. You are able to buy that new washer without hurting your monthly budget. You are able to sleep without worrying where you will find the money. It’s in your savings.

I suggest starting with three to six months worth of monthly expenses. This gives you a pretty good cushion. Put as much in as you can. My husband recently lost his job, and we found that three months fly by fast. Before we knew it, the fund was gone. But it gave him valuable time to find a good job — he didn’t have to take one just to make ends meet.

Once you have this savings built up, you should start working on your goals. You can work on several at a time. For example, if you are able to put $100 from each paycheck into savings, yet have three goals you are saving for, do a portion to each.

For example, your goals are for retirement, college for your child and buy a home. Decide which is most important to you and what you need to dedicate of that $100 to each goal. You might put the largest amount to your retirement, the second largest to your home and the third to the college education.

You should save money. I can’t tell you why. That is your decision. There are goals that can only be fulfilled from savings. Think about what you want in life. If you want out of debt, to own your own home or to retire comfortably, you have to start saving now.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!