The number of
people who don't dream of becoming wealthy are few and far
between. While money isn't everything, it sure does make life
easier. Having too little or too much money both create problems
to deal with, but wouldn't you rather have problems with too
much money? I've looked all over the web at different methods
or claims of creating wealth. It's ashame that there are so
many people out there who are using the method of telling
someone how to become rich to become rich themselves. Grounding
ourselves in the founding principles of our company, trust
& truth, I cannot tell you any guaranteed way to become
wealthy. Quite honestly there is no magic formula for doing
so because every one will have unique experiences in their
individual circumstance. That said, I'll share with you the
techniques I've used to construct my own wealth plan. It's
something I've created an acronym for: LACED™.
The LACED principle™
is fairly straightforward. LACED™ stands for:
Leverage
Automated
Compounding
Ethical
Duplicatible
If you create a wealth building
plan using all of these principles, you'll likely have a strong
plan.
I've heard many wealthy people
speak about leverage. Basically you'll want to use as much
leverage as possible to build wealth. You can do so by utilizing
vehicles that allow you to control large assets with smaller
assets. Some examples of this are, buying an investment piece
of real estate with 10% down. This is incredible leverage
if you think in terms of the fact that you can control $180,000
worth of property for $18,000. In some cases you may be able
to control real estate with absolutely no money down! Another
example would be buying stock options. In this case you purchase
the right to buy or sell stock but not the obligation. This
is a highly risky proposition and should not be tried without
extreme due diligence and some understanding of how options
work. Suffice it to say that with options, you can control
100 shares of stock (1 contract) for a small fraction of the
price of the underlying security. By the same token, a small
movement in the right direction on the underlying security
can magnify the value of the option considerably.
Next, you should try to automate
as much of your plan as possible. Anything that doesn't require
you actively working on it will free your time to build greater
momentum towards your wealth goals. The internet has greatly
enabled strides in this way. Consider how quickly you can
buy and sell stocks online, research real estate information,
or even sell products completely online through an automated
payment process.
Compounding is one of the
most powerful tools we can use to build wealth. There are
a lot of different strategies for compounding. You may want
to reinvest profits in your business to grow the business
larger. You may reinvest your returns in the stock market
to grow your portfolio more quickly. The more you are able
to make your existing assets work for you, the faster you
will propel yourself towards wealth.
Some might say that doing
things ethically is more of a moral choice than an actual
tool for wealth creation, but I will counter with the fact
that every major religion on earth I've studied has in some
way said what goes around comes around. In other words if
you cheat, eventually you're going to lose. Deal with everyone
honestly and you'll get wealthy faster. An interesting take
on this is something many people won't think about. When you
don't have a lot of cash, you don't want to spend money on
CPAs, Attorneys or other professionals to help you grow your
wealth. You'd like to have their service but don't want to
pay the price. This isn't ethical. You wouldn't want to give
your labor away, and yet you feel they should. This is where
those ethics are really going to make a difference! You get
what you pay for and if you try to be cheap you'll very likely
get cheap advice.
Finally, you want to make
sure the core components are as duplicatable as possible.
If something works one time, it may get you a large gain,
but if it doesn't work twice it may give you a huge loss the
second time around. I've had a lot of my mentors tell me that
a lot of small gains are much better than having one big homerun.
Find things that leverage, compound and are as automated as
possible and then pick those that are duplicatable and you
will have an astonishing wealth building machine in place.
I hope you can take this lesson
and build your own wealth plan with it. It may sound vague
and it is, but I believe it holds all of the secret ingredients
you'll need to work your way towards having your wealthy future
all LACED up!
All the best to you in your
wealth building!
Authors Details:
Rasheed Ali and Bill White have just launched their Web
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