How to Create Wealth

When you look at the formula for Net Worth (Net Worth = Assets - Liabilities), you will notice that your Net Worth will increase by increasing your assets and by decreasing your liabilities. It is important that you understand how both assets and liabilities affect your net worth. I will show you how to manage both parts of net worth.

First, let's focus on assets.

Not all assets are of equal value in promoting long-term wealth. The real key to creating wealth is controlling wealth creating assets. In other words, assets that will actually increase in value, and thereby increase your personal net worth over time.

Here are some examples of Wealth Creating Assets:

• Your home
• Other Real Estate
• Stocks
• Bonds
• Mutual Funds
• Savings Accounts
• 401(k) & IRA accounts
• Other Investments

Now of course, there are other assets that will not help you create wealth, but that we may still purchase out of necessity, for entertainment, or other reasons. Here are some examples of non-wealth building assets:

• Cars
• Boats
• Bicycles
• TVs
• Furniture
• iPods

The important thing to get from this lesson is that the more money that is spent on Wealth-building Assets versus non-wealth building assets, the faster you will achieve a higher net-worth.

Good Debt vs. Bad Debt

Wealth Building assets also determine what debt is good and what debt is bad. The best situation is to have NO DEBT! Avoid debt if at all possible; treat debt like a bad disease. However, in life, some debt may still be accumulated; despite your best efforts. All debt is not equal; some debt is better than other forms of debt. Good debt is used to purchase wealth-building assets and bad debt is used to purchase non-wealth building assets.

In other words, a loan to purchase a home can be good debt because the home will (usually) increase in value. On the other hand, if you use your credit cards to purchase an iPod or other consumer goods, then this is bad debt because these items will not increase in value, and will often decrease in value (depreciate) over time.

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Spencer has a BA in Finance, an MBA, and is currently a Commercial Banker advising Business owners on Business and Personal financial issues.

Do You Know Some Basic Wealth Building Strategies?

Creating wealth the old fashion way means that you inherited money from a loving but deceased relative. Employing wealth building strategies, if an inheritance is not in your future, means investing in yourself and your future.

If you want to become rich or affluent but you don't know how, what should you do? You should find someone who has wealth building strategies in place, a mentor that you can trust. You want a mentor with wealth building strategies that demonstrates integrity, honesty and viability while implementing these wealth building strategies and through their mentorship.

Every millionaire produces five more millionaires. Look for entrepreneurs who have a documented proven record of success. Look for longevity, not the fly by night mentor with no history of success or failure. Consider investing in an organization with wealth building strategies already in place. Be sure to do your homework and contact the organization by phone or email and that they have a proper mailing address.

Wealth creation inevitably requires an investment of financial capital and time. If you are considering investing your time in a venture that guarantees overnight riches or millionaire status with no financial investment, the rule of thumb is to just say no. The old adage "it takes money to make money" is somewhat accurate. It takes some sort of investment of time and money to begin to implement some of the basic wealth building strategies. More importantly, it takes dedication, persistence, and absolute integrity.

Searching for wealth building strategies or plans on the internet is an effective method of investigating the viability of the programs available. Search on your favorite search engine the term "wealth creation" or "wealth building strategies". Wealth creation is not a part-time job with part-time job income. Wealth building strategies create a financial environment that affords complete financial independence.

The first of the wealth building strategies is to manage your time and investing your money wisely. You must make informed decisions, not decisions based on emotions. Homework and thorough investigation of companies or opportunities, including mentors, should be a priority. Know where you are putting your money and be comfortable with it. If it doesn't feel right, it probably isn't.

If you are interested in establishing and implementing wealth building strategies and are not only interested in firing your boss, learn as much as you can about yourself and what makes you happy. Tap into those passions and find wealth building strategies or business that best exploits those passions to truly begin to create wealth.

Jeri Atleson has been a successful internet entrepreneur for 3 years. She has a passion for learning and mentoring others to achieve their financial goals. To learn more about Jeri and how she may be able to help you achieve your financial success online with a free coaching session, visit her website at http://atleson.legitimatebusinessfromhome.net/index.html

Wealth Building Secret: 95% Won’t Do It

Many people claim that they have wealth building secrets. Each earn millions are earned by people selling programs and books about how to build wealth. Even with all this information out there why are you not wealthy?

Here is my wealth building secret: It has been shown that 95% of people who buy books or programs rarely make it through the first chapter, and of those people who do read the whole book or program, how many people actually use that information?

The wealth building secret is just do it! For many people they see a new wealth building book or program and they see how popular it is and then automatically assume too many people are going to do it so there won’t be any money left for them.

If you realize how few people actually do the steps in wealth building programs you would be inspired to actually do the steps. Even people who vocally tell you that they are going to do this or that, will likely not do it.

Even 95% of the people who read this article won’t take action simply because they don’t believe the statement or they did not read past the first paragraph.

Be different from the crowd, pick one wealth building program and stick with it and do the steps. If you simply do one step you are further ahead than most Americas.

Get started right now. I’m sure you have at least one book at home on how to become rich doing something. Grab that book and go to work!

Fierce Personal Finance

Ambition - Why it is Not a Ticket to Earn Extra Income and Enjoy a More Successful Life

Ambition is that consuming drive to succeed in one's endeavors. It is an eager or excessive desire for advancement, honor, superiority, power, or attainment. It is a strong desire to achieve prominence, to excel. Ambition drives people to work 18 hours a day instead of signing off at 5.00PM. People consumed with ambition will not accept whatever life brings but will want to earn extra income, to be more high-flying and famous. However, is ambition a ticket to earn extra income and be more successful?

The subject of ambition is complicated. Man not only struggles to understand why some people have more ambition than others but also to reach a consensus on what ambition really is. Some psychiatrists agree that ambition is closely linked to a person's goals and the energy and determination to reach those goals. Others have a different view.

Ambition is expressed differently by men and women, the middle class, the well to do. For example, Apple Computer was co-founded by Steve Wozniak who left the company in 1985 at the age of 34, a multimillionaire. In contrast Steve Jobs continued to innovate at Apple for many years until health problems slowed him down.

Unbridled ambition can be harmful. Take the case of Bearings Bank. It was the oldest merchant bank in London until its collapse in 1995 after one of the Bank's employees, Nick Leeson, lost 827 million Pounds speculating, especially on future contracts. Nick was driven by unrestrained desire to make money for his bosses and earn bonuses for himself.

Selfish ambition seeks glory for self. In contrast, an ardent desire to serve other humans solve their problems and create lasting value is laudable ambition. A strong desire to earn extra income and be more successful without considering others will not lead to satisfaction.

True, every individual is responsible for his own life. To paraphrase an old proverb, every man will carry his own grain to the mill. No one will improve your financial life for you but be aware that you need to consider others as you chase a particular financial objective. Ambition and cut throat completion, so common in today's business world should not blind you to the fact that enlightened millionaires endeavor to leave behind them winners, not losers.

While ambition is required to achieve and earn extra income, it can also be harmful if it is not well directed. Specific goals will prevent unchecked ambition and move you in the right direction. You will be able to avoid stressful 16 hour workdays filled with snack meals and worry, a life style blamed for burnouts, heart attacks, stomach ulcers and family breakdown. Only well directed ambition is a ticket to earn extra income and enjoy a more successful life.

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Why it Pays to Be an Early Bird When it Comes to Pensions

Pensions can be confusing but, when it comes to saving for later life, it pays to start as early as possible.

Nearly one in two Britons will have kicked off the New Year with a resolution to get their finances in shape.

But while it is important to check you're getting the best returns on your savings and are not paying over the odds for your mortgage, many people are neglecting to make adequate provisions for when they stop work.

The problem with saving for retirement is that it's often a long way off and this can make it seem hard to justify setting aside money that won't be used for decades.

But where pensions are concerned, it really does pay to start saving as early as possible.

Tom McPhail, head of pensions research at Hargreaves Lansdown, stresses the point by saying that ideally people should start saving into a pension when they are children.

In reality, hardly anyone is likely to do this, but the amount you need to set aside in order to have a comfortable retirement does increase steeply the older you get.

How it works

It used to be claimed that workers who weren't part of a final salary pension scheme, who hoped to retire on a pension worth 50% of their final pay and increased each year in line with inflation, needed to set aside a percentage of their salary that corresponded to half their age when they first started paying into a pension.

For example, someone who was 20 when they started saving for retirement would have to set aside 10% of their pay throughout their working life.

Those who put off saving into a pension until they were 30 would need to contribute at least 15%, while those who waited until they were 40 would have to set aside 20% of their pay each year until they retired.

However Mr McPhail warns low investment returns in recent years, combined with increased life expectancy, which has reduced the rates paid on annuities when people convert their pension pot into a retirement income, means someone who started saving at 25 would have to set aside 23% of their salary, while someone who put it off until they were 40 would need to set aside 41%, if they were to retire on 50% of their final salary.

Mind over matter

These sums may sound mind-boggling, but for many people help is at hand in the form of an occupational pension scheme.

These schemes are often described as being 'gold-plated' as the employer guarantees what a member's retirement income will be, based on their pay immediately before they stop work and the number of years they have belonged to the scheme.

Unfortunately, the vast majority of these schemes are now closed to new entrants, with companies instead replacing them with less generous defined contribution pensions.

Under these, it's the individual rather than the company who has to bear the risk of investment volatility and increased life expectancy, with the employer only guaranteeing how much they will contribute each month and not what the pension will be worth on retirement.

But even if you only have access to a defined contribution scheme, providing your employer is contributing something, it's definitely worth signing up. And while these are not as generous as final salary schemes, the average employer contribution of 6.5% of a member's pay is certainly not to be sniffed at.

Tricky issues

For those who do not have access to a pension into which their employer contributes, the choice is less straightforward. From 2012 new legislation will make it compulsory for all employers to pay at least 4% of a worker's pay into a pension scheme, so it may be worth considering joining an occupational scheme in anticipation of this rule change.

Alternatively, insurers and investment groups offer a wide range of personal pensions, ranging from low-cost stakeholders which have charges capped at 1.5%, falling to 1% after 10 years, to Self-Invested Personal Pensions (SIPPs), which give the individual complete investment freedom to decide how their money is invested.

But while it's worth adding savings into a pension as soon as possible, there does come a time when it may be too late.

It's difficult to offer hard and fast guidance on this due to the complexity of the UK's benefits system, but often for people who put off starting retirement saving until they are in their 50s, any money they save will simply reduce the level of benefits they would have qualified for.

As with all things financial, if you're unsure, it pays to broaden your knowledge. Log on to http://www.confused.com/savings for further help and information on savings.

How to Get Rich - Thinking Things Through

How many times have you failed to follow through on an idea that you may have had, only to find out that later someone else used the same idea to make a small fortune?

You have to think things all the way through and then take action on those ideas if you really want to get rich. The idea or the dream of getting rich may appeal to just about everybody, but only a small percentage ever really make it happen. And of these people, most of them have a habit of thinking all the way through when they come up with what seems like a good idea.

You cannot just expect to get rich if you are not willing to pay whatever price you have to in order to do this. Thinking your ideas through is necessary if you want to have the next million dollar product or if you want to find a way to produce a significant income.

The get rich quick methods do not work and only the people who are willing to go all the way with their ideas are the ones who will reap the rewards. Anyone can come up with a great idea, but only some people will be able to take that idea to the next level and make it their reality.

Think your ideas all the way through and see what happens. The old saying that quitters never win is especially true if you want to ever really get rich. Just ask anyone who has gotten rich.

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Law of Attraction Secrets

Bryan Appleton is an investor/entrepreneur who has dedicated himself to teaching others how to achieve their dream life. He is also a proud single father with one son.

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What Are Reasonable Wealth Goals?

Avoid These 5 Traps if You Want Your Wealth Goals to Stay on Track

Several of you asked me about this trap, and wondered if I was saying it was okay to set your goals low? Absolutely not! Your goals need to be set high, they just need to be reasonable.

Let me give you an example of what I mean.

Person A & Person B have the same goal. Each has $100,000 to invest and wants to turn it into $1,000,000 in 5 years. Now, this requires an average annual rate of return of 58%.

Is an average rate of return of 58% reasonable? Some of you may be chuckling and thinking, "There's no way!" While others, like me, think a return of 58% is too low! But the truth is, it's not the rate of return that makes a goal unreasonable. It's about what you are willing to do.

In this example, for one person, this is a reasonable goal. For the other, it is not. Here's why.

Person A - Person A has had a business for 7 years. In the past 2 years, Person A has gotten out of the day-to-day operations as a result of having a strategy and systems in place. Person A understands and embraces the leverage and velocity that comes with systems. Person A is ready to apply these same systems to building wealth.

Person B - Person B has also had a business for 7 years. Person B works in his business a minimum of 60 hours per week. He would love to be able to get out of the day-to-day operations, but can't imagine how the business would run without him there. Person B wants to focus on creating wealth and has the goal to turn his $100,000 into $1,000,000 in 5 years, but right now he needs (or he thinks he needs) to be in his business 60 hours per week.

Which person is more likely to focus on their wealth? Which person has the knowledge of systems to leverage in their investing? Are you person A or Person B?

With focus and leverage, a return of 58% is attainable. It is not attainable when there is no time to focus or no knowledge of systems.

Now, Person B could achieve his goal, but it is all based on what he is willing to do. Is he willing to leverage his business so he has the time to focus? Is he willing to increase his knowledge of systems?

It is not the return that makes Person B's goal unreasonable, it is what Person B is willing to do. Some people are not willing to get out of the day-to-day operations of their business. Some people don't want to learn new things. This is what determines if a goal is reasonable or not.

Do you have the time (and money) to create wealth? Creating a wealth strategy and implementing it doesn't have to be a full-time job, but it does require focus and some time and effort. As with business, the key is treating your investing like a business which means building the systems.

These are the principles I teach when I'm speaking on stage. These are the principles I follow in my business. And these are the principles I follow in my real estate investing.

Person A & Person B have the same goal. Each has $100,000 to invest and wants to turn it into $1,000,000 in 5 years. Now, this requires an average annual rate of return of 58%. http://www.provisionwealth.com