Building Wealth in Modern Society
Webster’s Definition of Wealth: abundance of valuable material
possessions or resources, abundant supply, all property that has a
money value or exchangeable value, overflowing stock of useful goods
having economic value at any one time. The word wealth originated
from the old English word weal, which means well-being or welfare.
Wealth is basically defined as one having an abundance of goods and
resources or the ability to possess any type of goods or resources
in abundance with the exchange of money. Another portion of the definition
of wealth is possessing real estate or personal property with an exchangeable
value. Wealth can also be defined as a state of well-being or good
health.
In modern society, we have an increasing number of avenues to obtain
wealth. Society must simply gain the knowledge and skills necessary
to implement the proper strategies and techniques.
STRATEGIES FOR WEALTH:
One strategy is called (triple compounding), suggested by Steve Sjuggerud.
Sjuggerud is the writer of investment letter --True Wealth--. He unfolds,
“Your account can grow at rapid speeds for three reasons: First, you
are adding to your account every month. Second, if you invest in growth
mutual funds, your account’s NAV (net asset value) is likely to increase
overtime. Third, all dividends and distributions are automatically
reinvested.
Saving & Borrowing
One of the least practiced tactics for building wealth is to set aside
money in separate investment accounts. Regardless of income or budget
stash away at least 10% of your income each pay period and do not
touch those funds under any circumstances. Many individuals get a
set amount taken out of their income before they see their paychecks
(in addition to 401k). A number of self employed individuals with
various pay periods take a portion of their income and place it directly
into separate investment accounts. After saving and borrowing a nice
sum of cash, do your research and let your money work for you by diversifying
and placing cash into smart investment vehicles. Everyone knows that
borrowed money has an interest rate; smart individuals will invest
the borrowed money into speedy return investment vehicles.
A few other strategies to build wealth in modern society is to invest
in online global marketing, real estate, land, construction, funeral
homes, medical practices, retail and service sector businesses.
IMPORTANT NOTE: One of the most successful techniques for achieving
financial success often involves a wealth-building mind-set, knowledge
and a sensible plan for spending. Mindset + Knowledge = Wealth
Author: Edward Pitts is a financial expert that educates and shares
informative information on different strategies and techniques to
build wealth in our current economy as well as supply individuals
with the necessary tools and resources to build wealth.
Recommeded Reading:
Financial Independence 101: A Simple Strategy for Building Wealth
Midwest Book Review, February 1, 2003 "...a straightforward, how-to
guide to taking charge of one's financial affairs ... presenting complex
investment concepts in down-to-earth terms"
