Invest Wisely and be Wealthy or Invest Aggressively to Make Others Rich

Almost anyone can build wealth and why isn't everyone wealthy?  The answer is simple. Poor people spend their money and invest what's left aggressively to be rich quickly. Wealth people invest their money wisely to be wealthy and spend what left. They always felt like they were putting money aside, yet never seemed to get any further ahead. To build wealth you have to invest in one form or another.   To build wealth, you have to invest, in one form or another.  

 Develop an Understanding of the Power of Small Amounts

 Investing doesn't mean that you need to dump all our money  into any assets instead  you can make your mark in investing by investing small amounts in fixed interval in diversified funds. Investing also includes protecting your savings.  It is hard to save money to   give you an example   a person who is making $40,000 per year will take up to 250 hours to save $1000  (based on saving of 20 % of the total income ) can lose the entire thousand in less than an hour.

 First step is to determine your net worth,  in simple terms this is the total money you have in your bank account to the money you owe.

Money in Bank - Money You owe = net worth.

 Negative net worth investors should focus on invest more of their money to close the gap between money in hand to money owe.  In other words rather than investing all their savings keep those money as a rainy day fund and keep paying off your debts at the same time save a small portion on a regular basics  through any other investing medium.  

 Positive net worth investors should focus on protecting their surplus at the same time keep a strong frequent but small investment plan.  It is now time to consider investing in a house or bonds / municipal bonds which are less risky and would give you a steady capital return.  When you have excess capital feel free to risk in aggressive trading practices with only a small portion of your excess capital.    Remember it is easy to lose than gain money.

Second step is to maximize your savings. The key to make money is to save from what you currently take home. Make it a game to save more each month even if it is a single dollar and keep a strict budget with enough room for entertainment.  Be create with your savings plan and execute the plan you have created.  

Third step is to increase your income.  This step is the hardest part however there are some tricks you can do to get more income.

•1>     Search Job boards to see additional skills you can possess to enrich your value.

•2>     Know your job search time from sites like http://www.crootpad.com/JobsearchTime

•3>     Attend courses that would add more value to your career of course get your employer pay for the course or have you invest on your self.

•4>     Don't just stick to one employer; look around you will gain more exposure and probably a salary raise.

Fourth step is to have a clear savings goal.  Keep a clear achievable savings goal (for example by end of this 2009 I will have $15000 in my savings account in INGdirect(**)). Once you defined the goal see how you can achieve it and do every thing to achieve it may be your can work overtime or work in weekends to achieve that goal.  Keep a single minded focus on getting that goal

(** I am not recommending any of these).

  Fifth step is to have a plan to share your wealth. Donate what you can to help your charities or/and  church after all you don't want money to rule you. Show money that you are still in control by sharing your riches with God and fellow living beings.

 Regardless of your net worth be careful with investing in stocks, so far the people who made money in stocks are stock brokers. When the Market is up you can hear them screaming that the market is going to go higher and when the market is broke they will claim that the stocks are at a bargain, regardless of the market they make money on the trade and commissions.  

One good vehicle for investing for younger generation is ETF (exchange Traded Funds) .  The most popular ETF's are SPY, XLE, RSP, XLF and many more , the key is to get the ETF (**)  with a reasonable good trading volume  and has at least $500 million in assets.   Today there are more choices like Sharebuilder (**)  where you can set automatic investment plans that would cost you only $20.00 / month.

 Our mantra is "Invest  !! baby !!  invest wisely first, spend last" . Happy investing!!