Most people have no idea how to create WEALTH. Don’t get offended. It’s not your fault. Did anyone give you a step by step plan and a way to have the money to implement that plan? Of course not! People from all walks of life struggle to generate more income than the needs in life. I know a lady that inherited 2+ million dollars and had no idea how to manage it. She let the "banker" invest it as he wished.
He of course invested in bank stocks. You guessed it. The bank was one of the casualties of the banking scandal a few years ago. Why did this happen to her. Daddy managed everything and did not teach his children anything about finances. He died suddenly living his children totally clueless with regards to finances. I think it would have been good quality time to have taught them how to invest and manage money.
How can you generate wealth? It is not an overnight process. You have to make a plan and follow that plan a step at a time. Most of the time it does take money. The amount of money depends on the method of investment you choose.
Franchises require hundreds of thousands of dollars. Many franchises fail shortly after they begin. Reasons for failures are underfunding and lack of knowledge of the business. People fall in love with an idea and do not evaluate their ability to successfully manage the business.
Real Estate is a popular way of attempting to build wealth. Don’t get me wrong, I like real estate and I do own some properties. I did not buy real estate (other than my home) until I generated enough money to pay cash. Prices are cheaper when you pay cash. The promoters of "buy real estate with no money" or "other peoples money" do quite well for themselves but create very few successful investors. They use the hopefuls for locating properties for themselves. Risk include devaluation, foreclosures, damages, lawsuits and high interest rates. Realistically, at least several thousand dollars is required to get started in real estate investing. The J-O-B doesn’t provide enough extra funds to create substantial wealth.
By: Sue Carter