I have traveled the world and noticed that the wealthiest countries have people who have ownership rights in stock market investments, house properties, income investments, and even intellectual properties. There is no doubt that to become wealthy you should have ownership in some time of investment. Countries around the world that are poor have citizens that do not have any type of investment whatsoever and as a result, they live in poverty. Now, you might say that these poor persons are in a country that oppresses them. That is most likely true.
However, in a country like the U.S., wealth creation can be achieved by understanding the environment around us. The U.S. and similar countries allow their citizens to invest and develop property rights so that their citizens can increase their wealth. This is an essential concept that you must understand. To go to another country to invest time and effort to build wealth is not a good strategy. I hear a lot that you should invest in China or emerging countries that have extremely poor citizens. If you are to invest in these countries you should do so with careful attention along with a small percentage of your portfolio. You should stick to what you know but at the same time be open to new opportunities.
Why Create More Wealth
Wealth creation strategies are designed to make you happier and to propel you up the psycho-social ladder. Take the Maslow’s hierarchy of needs as an example.
Maslow’s hierarchy of needs guides us on why we want wealth creation as human beings. At the lowest part of the pyramid is the struggle for basic needs to be taken care of. This is where there is no wealth creation and the person is trying to achieve basic needs. At the top of the pyramid, the person lives a life of self-actualization. Unlike fighting for basic needs the person has gained the respect of peers and lives life with an understanding of creative arts. The self-actualization stage is where the person does not have to worry about basic necessities.
You should strive to reach the highest point of the pyramid. This is so you can work on your personal passion in life without the concern of getting a paycheck every week. To get to the top of the pyramid you must understand the essentials of wealth creation so that someday you can enjoy the arts, express your passion, and be psychologically fulfilled in life.
Three Simple Wealth Creation Strategies
Here at mywealthyvision.com we are always looking for ways to :
Save Money
Make Money
Invest Money
Saving Money
In the earliest stages of wealth creation, you should strive for ways to save you money. Think about it like this. According to Maslow’s Hierarchy of Needs, savers would be around the bottom of the pyramid looking to advance higher in the pyramid. Saving money when you can will help you increase your wealth so that you can
Afford to buy a house.
Save for a gas efficient vehicle so that you can do rideshare part-time.
Invest in securities that could make your richer.
Use the money for college in anticipation of a higher salary.
Make home improvements
Pay down debt.
The list goes on. Towards the bottom of the pyramid, you should use any strategy that you can to save money so that you can ascend.
Make Money
Making money should not be from your job only. You should have multiple streams of income. As you will read later, there are multiple ways that you can increase your income stream as long as you are an expert at the subject that you are involved in.
You should strive to increase your income in a healthy manner. The key term here is “healthy manner.” You should understand that your physiological and safety needs are required. Do not try to overburden yourself and as a result, make your life miserable. Instead understand your time, body, mind, and spiritual limitations.
Making money in 2018 and 2019 is easier than ever. You can easily increase your income by :
Becoming a rideshare driver.
Writing an ebook that shares your passion with the world.
Start a blog that further expresses your passion.
Starting an affiliate marketing company.
Being a Fiverr top seller.
Social media consultant and expert.
There are so many ways that you can add to your income that I encourage you to search for ways to make more money part-time.
Invest Money
You should invest your excess cash in investments that will, in turn, make you more money. A very popular way to invest money is in real estate. You can buy a house and literally pay down the house in 7 to 10 years. From here you can put the house up for rent and gain rental income on your property. Not only should you receive rental income but you should gain home appreciation value from your property as well.
You should also understand that people do get rich in investing their money in stocks, bonds, and mutual funds. Wealth creation involves understanding how to increase your wealth by investing. You do not need to be a day trader to do this. But I will pass along these critical investing ideas to you so that you can further your importance of investing understanding.
Diversification
Diversification of your portfolio is a good thing. You should have risky investments as a small percentage of your portfolio along with more stable investments. We, at mywealthyvision.com, believe that cryptocurrency will be the investment that will outperform the market. In our portfolio we have a small percentage invested in cryptocurrencies. Right now they are in cash because we know that the cryptocurrency market has tanked. However, we are optimistic about cryptocurrency as an outperformer in the future.
Diversification serves two purposes :
- To stabilize your portfolio and protect against downside risk.
- To provide an avenue to invest in riskier securities that could outperform the market.
Point number two is critical. You could literally end up investing in a security that becomes 95% of your portfolio. This security could make you rich. There are people who have invested in companies like Apple, IBM, Facebook, and Amazon.com when they were IPOs and went on to become extremely rich because of it.
Understanding the Markets
Trading the stock, forex, or futures market is not suited for everyone. However, you should understand how to read the markets and take advantage of them. Instead of learning how to day trade consider learning how to swing trade. Have a small swing trading portfolio and test whether or not you can increase your wealth this way.
Wealth Generators
Wealth creation strategies include a lot of wealth generators. We will explore wealth generators below. Please feel free to comment below this post if you would like to add more to the wealth generation list.
Real Estate
Real estate is one of the most conservative investments that you can make but at the same time reap huge rewards. I would like to say that real estate is the only wealth generator that will make you wealthy but there are others.
This is how real estate can make you a very wealthy person.
Home mortgage interest is tax deductible.
Improvements to the home have tax advantages too.
Home improvements increase the value of the home substantially.
You can rent your entire or part of your property.
Your home should increase in value that you can draw on with a home equity loan.
You should read a future article on real estate to learn more about why real estate is a great wealth generator.
Expert and Consultant
You should use your expertise to gain more income than you are currently making. Right now there are multiple websites that allow you to express your expertise and get paid. The most popular websites are :
Upwork.com
Fiverr.com
freelancer.com
toptal.com
There are many ways in which you can make money at freelance websites. If you are not an expert at a popular and most paid area you might want to consider getting the education to become an expert. The rewards are numerous.
Just to increase your motivation to become a freelancer, an expert in animation makes over $20,000 a month for his service on creating videos for others. Imagine what his Youtube channel would be like if he had a Youtube channel.
Another way you can express your expertise is to start a Youtube channel and post videos regularly every week. This could boost your sales to your online business and create more income for you.
Online Business
With your expertise, you should strive to open your own website business. This website business should include your ebooks, blog posts showing your expertise, and affiliate marketing ads. You can easily become an expert at one of the most lucrative online niches out there. The online niches that are doing well are.
Wealth
Health
Relationships
Pick a niche that you are an expert at and start your website. Post as many times as you can and monetize your website with the following:
Google Ads
Clickbank Ads
Affiliate Marketing Ad Offers
If you are new to affiliate marketing check out my post on affiliate marketing.
There are also other types of online businesses like Amazon FBA and dropshipping. Having an online business that grows exponentially could generate wealth in excess of one million dollars!
Playing the Stock Market
Trading can be very lucrative and could lead to a substantial increase in wealth. You should educate yourself on how to trade the stock market so that you can benefit from doing so. Some people will buy software like VectorVest to help them trade the stock market. There is nothing wrong with this but you have to understand that using a third party software or application to make your investment decisions is not as good as doing your own homework.
I recommend that you understand the following before you start trading the stock market.
Understand mathematics.
Understand the candlestick charts.
Fibonacci Retracements
Stochastic Oscillators
Moving Averages
Also, you should check up on IPOs and look for lucrative companies to invest in before they become mainstream.
There are many people that can attest to the power of trading the stock market for wealth creation.
Consider swing trading cryptocurrency. See my beginners guide to trading crypto.
Summary
We live in a country (U.S.) and other countries that allow us to accumulate wealth. We should accumulate wealth to enhance our psychological well being so that we can live freer with life passion. You should begin your journey to wealth creation by learning ways to save money. Once you have a system in place to save money you should begin to increase your income and in turn invest.
Look into ways on how to generate wealth. We have given you some wealth generators that you should consider. However, there are more wealth generators that are outside of the online marketplace. If you have a good wealth creation idea please share them in the comments below.