Building Wealth, Step by Step

Invest some amount of money wisely. Almost anyone can accumulate significant wealth over a long period of time by wise investing. It doesn't take a Ph.D or a fortune to start investing, just a little good sense, and small amounts of your income, over a long period of time. It has been said that:

Which side of the equation are you on? Are you earning interest- or paying it to someone else? Make your money work for you! Long term investing, stock splits and dividend re-investment can all work like compound interest. A fortune can be accumulated, slowly, given wise investment choices and  a long enough period of time. A journey of a thousand miles starts with the first step; the accumulation of wealth starts with the first dollar.

If it is an obvious thing that:

• To become a carpenter, one must study wood.
• To become an electrician, one must study electricity.
• To become a scientist, one must study science.

So....., to become wealthy, one must study wealth!

Some Simple Rules:

1. Find out what rich people do, and do it!
2. Find out what rich people read, and read it!
3. Find out what poor people do, and don't do it.
4. Find out what poor people read, and don't read it!
5. To build wealth, invest your money first- spend what's left.
6. To squander wealth, spend your money first- invest what's left.

Almost anyone can  build wealth. To build wealth you have to invest in one form or another. So, do something about it. Its not that hard! Its said so often "it takes everything I have to live on". Its more than likely that we are spending our money and investing what's left, (nothing?). Poor people spend their money and invest whats left. Wealth people invest thier money and spend what left. If you will learn this, and nothing else, then you will  understand why there is never anything left to invest.  To build wealth, you have to invest, in one form or another. Invest first, spend last.

Why don't we invest as easily as we spend? Since the inception of advertising, we have been bombarded with psychologically penetrating advertisements, designed to appeal to our deepest inner-selves, arousing the inner animal to coax the money out of our pockets and into theirs. Advertisers have been, for decades,  appealing to our psyche, making us feel adventurous, sexy, macho, risky, important,making us feel good about spending our money, to line their pockets! We have been trained, by radio, television and magazines, to spend, not save, our money! Wake up- smell the money- and realize that you have been trained to spend (why do you think we're called "consumers")!

Building Wealth, Step by Step:

Excerpt From: The Richest Man In Babylon; The Seven Cures For A Lean Purse:

1. "Start thy purse to fattening: For every ten coins thy placest within thy purse take out but nine. Thy purse will start to fatten at once......"
   (Save at least 10% of everything you earn- use your after tax total, if it makes you feel better about it).
   
   
2. "Control thy expenditures: Budget thy expenses that thou mayest have coins to pay for thy necessities......enjoyments......thy worthwhile desires......without spending more than nine tenths of thy earnings......"
   (Establish a spending plan- and spend only what you have after you have put away your 10%- invest first.)
   
   
3. "Make thy gold multiply:.....put each coin to laboring that it may reproduce its kind......
   (Make your money work- don't put it in the mattress- invest it!)
   
   
4. "Guard thy treasures from loss: ......Consult with wisemen...those experienced in the profitable handling of gold......protect thy treasure from unsafe investments."
   (Obtain professional advise- magazine, newsletter or what ever- and invest your 10% in solid performing companies.)
   
   
5. "Make of thy dwelling a profitable investment:.....own thy own home."
   (Choose you home, and its location carefully- plan on your home being an appreciating asset.)
   
   
6. "Insure a future income: ......provide in advance for the needs of thy growing age....no matter how prosperous his business......
   (Do a retirement plan!  Know- don't guess-  what you will need to live, the way you want to live).
   
   
7. "Increase thy ability to earn: ......cultivate thy own powers, to study and become wiser, to become more skillful, to act as to respect thyself."
   (Engage in constant self-improvement.  Keep your skill-sets current, or technology- and time- will make your skills obsolete.)
   
   

One of my own: Build ye an investment library!
(To become wealthy, study wealth- seek the council of professionals.)

 Learn step by step how to start becomming wealthy:

The Richest Man In Babylon is a  must read for anyone wanting to learn, step by step, how to start becoming wealthy! Read the reviews on amazon.com and see what others are saying about this life changing little book,   Considered a classic, The Richest Man In Babylon contains financial wisdom, presented in a way seldom found in "money" books. Highly recommended reading for teens.

  Painfully simple- "pay yourself first" explained:

New York Times Best Seller, Rich Dad Poor Dad is my newest "replacement" for Richest Man in Babylon .   Rich Dad Poor Dad's contemporary story gives you a perspective never taught in school.  Author Robert Kiyosaki tells how his poor, over-educated, government employed Dad would tell him how money worked one way, yet his rich, self employed "Dad" would tell him something altogether different.  Robert was left to decide for himself and was subject to a number of "tests" by his rich Dad.  The book shares the   basic philosophy that income generating assets are always better than depreciating assets, and describes the simple difference between them.  The basic money message in this book is common to the rich, yet elusive to the poor.  A quick book to read, I read it all  one snowy  afternoon.  It was motivating, inspiring, eye-opening, and painfully simple- pay yourself first.  Highly recommended.

What Millionaires Do:

Drs. Stanley and Danko tell you the seven common denominators of America's Wealthy, that show up again and again.  Over 30 weeks on the New York Times Best Sellers List, this book's message is clear-  anyone can become  a millionaire.   Did you know the average millionaire in the U.S. buys his suits at J. C. Penny's? Or that one in four millionaires have never spent over $100 for a pair of shoes (sorry Nike). This book is full of statistics, and my not be for everyone, but I found it compelling, and very motivating, and consider myself now, as the book puts it, a "a millionaire in training". Check out The Millionaire Next Door : The Surprising Secrets of America's Wealthy.

Simple Plan To Learn the Stock Market :
Learn Stocks and The Stock Market Page

Get Started With Very Little Money:
DRP Investing Page

Invest in companies like Intel Corporation, Coca-Cola, Merck and IBM- in amounts as small as $30 ? Yes. Hundreds of highly profitable companies offer stock directly to their share holders. Most of these companies pay all broker's fees and commissions. This could be the what you have been looking for. I have been doing it for over 10 years!  It's called a Direct Investing Plan (DRP) and it's the industries best kept secret: 

Home:  Finance and Investment for Beginning Investors

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This is not an offer to invest.  Information presented here is for educational and illustrative purposes only and not intended to be used as investment advise or guidance. All investments involve risk, and investing can result in the total  loss of principle.  Past performance is no guarantee of future results.  Always seek advise from a registered investment professional and   always read the official company prospectus before investing.  No guarantee is expressed or implied concerning the accuracy of information presented here.