5 Wealth Secrets
Whether you ask financial adviser or google the term “wealth secrets” you can probably come to know the same traditional answers like – hard work, live below your means, take risks, save every time and so on. So what’s new in that? With millions of articles or thousands of advises you might conclude that none of the content is actually the secret. I mean they do sound good, but when it comes to wealth creation you need some valuable information that goes beyond these traditional tips. Here are some of the TRUE-CALLED, genuine wealth creation secrets that will surely help you..!
The first secret is –generate income from passive rather than active. You may be wondering what is passive income? Well, Any amount of money that you can earn while eating, sleeping, travelling and sitting on a beach is known as a passive income. It separates our time and our ability of making money. It is also one of the most important and crucial secrets to build a desired financial fortune. Whether you are poor or rich, you both get the same hours of the day, but rich people consume it distinctively.. They don’t trade their time for nuts or just for a few good dollars. Instead, they properly structure their investment or business that can make them earn more and more..
Use the power of compounding and make one million in one month..! It is simple, just take a penny and double it every day for a month – you can end up having a million.
Here is the example how it really works:
- One the first day, you have one penny
- Then it turned into two
- Now those 2 turned into 4
- The 4 will turn into 8 and then so on. Believe it or not, by day 27 you will have accumulated $1,342,177.20.
And that’s how compound interest works in creating wealth.
Time is a key to wealth creation. Getting good advice early, planning early and knowing which stage of life you are gives you a massive advantage. Proper understanding of the economy, and business cycle will surely impact your results in you pursue them on time.
Asset can add value to your financial situation. A liability detracts from your financial stability. Suppose the loan you pay for your home is your banker asset. If you own it and it grows in value who will going to reap the benefit? The key to great wealth is to maximize your assets while minimizing your income. Income gets spend, it get taxed – invest in assets that are hard to spend (like bonds, stocks, buildings, etc.) So instead of cashing out, diversify the assets.
Using good debt:
Everyone is afraid of debt. There are so many magazines, books and television shows devoted to teaching people about getting out of debt. It is right that debt can be negative, but it can be also considered as positive if used properly. Such as it can be used to leverage your returns.
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