The 4 Amazing Secrets of building Wealth
Do you know The Real Secrets to build wealth? you Must Hear Something Like this Buy Assets First and Avoid Liabilities. Have you Ever Understand the Actual Meaning Of this?
But First, We Need to Look Into what studies & Research Shows. The average American debt totals $51,900. That includes mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debt-like personal loans. (Data from the Federal Reserve Bank of New York’s Household Debt and Credit report)
So Now we’ll Look into the Actual Ingredient Of the Secret to Building Wealth. It’s an asset is something that, in the future, can generate cash flow for you. Assets make money. Anything that takes money out of your pocket is a liability.
It’s Multiple income streams at least that’s what millionaires will tell you. 65% of them have at least three income streams, and nearly 1/3 have 5 or more income streams.
So if you’re still tied to your day job, and you’re serious about reaching financial freedom, then ditch the cars, jewelry, and luxuries. Instead, let’s look into spending our money on the ultimate status symbols: income-producing assets.
1. Mutual Funds — the Secret to Building Wealth
Business and commerce allow us to create wealth with the aid of making the money invested with those who are on the path to creating wealth. We can be investors in businesses of entrepreneurs, by means of investing in stocks of various companies. As the entrepreneurs and the managers run their organizations efficaciously and profitably, the shareholders get the benefits. In this regard, Mutual Funds are an excellent manner to build wealth.
But how do we know which stocks to buy, and when?
That is where taking professional help counts. They also take the advantage of a large corpus to explore more opportunities simultaneously.
Like a balanced diet — we all need proteins, vitamins, carbohydrates, etc. Eating only one type results in some nutrient deficiency. Similarly, in a diversified equity fund, you’re exposed to different segments of the economy and also protected from the potential downside.
Invest in a professionally managed, diversified equity fund and stay invested for long period to create wealth for yourself.
By Professional I’m also a Stock Market trader so I have a Very Delivered Portfolio in Stock Market. If you Don’t have any Experience in Stocks so I’ll Recommend you to Start with Mutual Funds. Some Of Mutual Funds Consistently Give Average 13%-15% Per Annum. its Way Better than the Saving Accounts rate which Kills by Inflation overtime.
2. Real estate — The Secret to Building Wealth
Many of Multi-millionaire build their assets and become wealthy by investing in real estate or holding their wealth from real estate.
Real estate investing may not make you wealthy overnight, but it can add zeros to your net worth in a shorter time-frame than many other traditional investments.
For example, purchasing a fixer-upper house, rehabbing the property, and selling it for more can net you a significant windfall if you do it correctly. Just be sure to buy low, rehab smart, and sell fast. House flipping, as this process is called, is largely a math game, and significant profits can be made by those willing to take on the challenge.
Another strategy that can help you add wealth quickly through real estate is by purchasing multifamily properties that produce significant monthly cash flow. This cash flow can be saved and reinvested into more deals, creating a domino effect that will allow you to exponentially grow your real estate portfolio.
3. Fine art — the Secret to Building Wealth
Most wealthy investors don’t acquire fine art merely because they’ve fallen in love with the work. They know it has value. Fine art will always have someone who wants to buy it, and those who want to buy it understand its worth. They are not trying to bargain for every cent, which makes this a good investment.
Alternative ways of investing in the art are limited only by human imagination. In Switzerland, some 25,000 shareholders bought a $2 million painting by Picasso. The owners decide where the picture is to be exhibited and will decide when it is to be sold. It is unknown whether this tactic will prove advantageous to investors. Another way to get into the art investment field is to buy shares in auction houses
Sometimes fine art can even go in the asset box and generate a passive income. Some wealthy individuals have gathered enough fine art to open private galleries, or to lease their art to famous galleries.
4. Rare coins— the Secret to Building Wealth
The super-wealthy do spend a considerable amount of money on luxuries, at least $1.1 million each year if CNN Money is to be believed. But this is actually a tiny fraction of their wealth.
Furthermore, the luxuries they buy may include things like rare U.S. coins, which many use as a wealth preservation tool. One reason rare coins are a good investment? The market is comprised of historically significant items that are very limited in supply.
According to Michael Contursi, executive vice president of RCW Financial.
“The scarcity and exclusivity of many rare U.S. coins create an environment for excitement where opportunities to purchase these items may only occur once in a lifetime. Ultimately, availability becomes more important than the price. This puts an investor withholding power in a very powerful position not only to preserve principal but also to profit based on the principles of supply and demand.”
