Creating Wealth

If you have ever Googled the subject of wealth creation you maybe surprised with how many sites they are on the subject. These are some ideas that I have developed, picked up from others and learned by experience.

There are several keys to building wealth.
1. You must begin, you must pay yourself first. Probably the hardest lesson to learn is that you will not achieve wealth until you put a value on yourself and make a payment to yourself every month for that value. A good place to start is 10% of everything you earn, put that into a savings plan, preferrably one that debits your bank account that you can't get at, like a whole life insurance policy or a segregated fund with an insurance company. The advantage of these types of investments is they generate guaranteed returns, they require a regular deposit using a pre authorized cheque and you can't get your hands on the money.

If you say that you will wait until you pay off your debts, you will never begin, you will never create wealth and you will never be out of debt. The key words were in the last paragraph you have to begin. Take a leap, give it a try, call your insurance agent and start today, what have you to loose? If it doesn't work, if you are not debt free and wealthier than you are today in five years, cash in the policy and use it to pay off your debt.

2. Now let's talk about how your are going to get out of debt. Cut up the credit cards, from now on you will pay cash and if you don't have cash you will go without. Develop a budget, list everything you spend, keep a record of everything you spend. Start thinking about how you can save money. Can you walk to work, or take the bus ? Could you pack a lunch instead of going out, could you do without the low fat late, maybe use coupons at the grocery store? Even a couple of dollars savings will make a difference.

3. Make a list of all your debts, pick the smallest and start to focus on paying it off. David Ramsey calls it the snowball effect, you might want to go to his website and follow his suggestions. www.davidramsey.com

4. Start saving to build a nest egg of $1,000 in cash in your savings. The purpose is to have an emergency fund to deal with the issues when they arrive instead of using a credit card.

5. You need to build a fund with at least three months salary in your bank account.

6. Pay off your mortgage, once you have achieved the financial freedom of no more credit card debt you need to start on your mortgage, we will discuss how in a later point.

7. Give some away, wealth is built with gratitude and one way to do that is to give away some of what your earn you will get it back tenfold when you do.

8. Develop a cash management plan. There are not a lot of things you can control, you cannot control rates of return on investment, but you can control what you save, the time you have to save, the taxes you don't pay and the interest that you pay. There are several motgage vehicles you can use th
Once you have a One account, you need to spend some time with a financial advisor and discuss how to take advantage of what this tool can do for you. How to use the interest you will save to start building wealth, for when you start to save you can begin to dream the dreams of financial independence. It doesn't take a long time but it does take discipline and encouragement.