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Universal rules that govern wealth creation

Entrepreneurs must be willing to initially work for free in their own businesses if they want to become successful, Dear commented. Many enterprises fail because the owners pay themselves when they should be re-investing the profits into their operations. Dear advised entrepreneurs to have enough money to sustain themselves before starting a business.

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Just as there are the laws of physics, there are a host of natural and spiritual laws. Believe it or not, there are universal rules that govern wealth creation. To get rich, you need to learn and execute these principles strategically and consistently. Outlined below, according to Jason Dear, the Equity Trading Manager at First Global Financial Services Limited (FGFS), Kingston Jamaica, are the top 10 ‘secrets’ that can help ordinary people begin a successful journey to generational wealth building.

1. Change your thoughts about money

To get off to the right start with your wealth creation plan, you have to stop thinking negatively about money, Dear explained. He encouraged persons to stop complaining and to replace worry with a positive energy. Adopting an attitude of gratitude is also important to financial success,  the financial planning expert declared.

2. Realize that money in its simplest form has no value

Over time, money as a symbol of value is reduced by the effects of depreciation and inflation. Dear revealed that affluent people did not get rich by focusing on money alone, they became wealthy by creating assets with their money.

3. Don’t place money in items that depreciate

Dear cautioned persons from spending a lot of money on items such as cars, clothes and cellphones that depreciate even faster than inflation. “Once you drive a new vehicle off the lot you can immediately lose 30 per cent of its value,” Dear disclosed.

4. Understand the difference between assets and liabilities

An asset increases in value and generates income, while a liability doesn’t create money and its worth decreases over time. Dear explained that any item could be used in either way; once it generates income, then it can become an asset.

5. Create wealth from several types of income

Dear outlined the differences between earned income, portfolio income and passive income. Earned money comes from working for others for a fixed salary; portfolio income is derived from investments such as stocks and bonds; while passive earnings flow when your money works for you.

Earned income is not sufficient for persons to truly become wealthy, as it is dependent on personal effort, limited time, and has the highest tax rate. Dear encouraged persons to invest towards building wealth and to look for ways to generate passive income.

6. Work for free in your business

Entrepreneurs must be willing to initially work for free in their own businesses if they want to become successful, Dear commented. Many enterprises fail because the owners pay themselves when they should be re-investing the profits into their operations. Dear advised entrepreneurs to have enough money to sustain themselves before starting a business.

7. Differentiate between good debt and bad debt

Debt is not necessarily something to be avoided, Dear explained, as it can be considered ‘bad’ or ‘good’ depending on what it was used for. “If you use debt to buy an asset, it is good,” he clarified, “but if you borrow to buy a liability it is a bad debt.”

8. Understand the power of leverage

One of the mysteries of wealth is the fact that rich people are able to work less time and make more money than the average person. Dear revealed that affluent persons use the power of leverage to make money. One definition of leverage is the use of an object’s power to gain a positional advantage.

By establishing a business, persons can leverage the work of others to create wealth for themselves. Dear also declared that you don’t always need to have money to make money, as you could borrow other people’s resources through leverage.

9. Think rich, not poor

“To become wealthy, you have to think and act like rich people,” Dear pointed out. He advised persons to copy the actions of wealthy mentors, whether in real life or vicariously through books. “If you focus on debt instead of wealth,” he added, “you will only receive more debt.”

He noted some differences between prosperity and poverty thinkers: the poor think about money, while the rich think about assets; the poor worry about the risks, while the rich think about the returns; the poor don’t try because they are afraid to fail, while if the rich fail, they keep trying until they succeed.

10. Focus on opportunities

Dear dared everyone to see opportunities where others can only perceive problems. When persons become creative in solving problems they will find ways to earn money, he affirmed. Dear closed with the reminder that great wealth can be generated in challenging times as ‘Necessity is the mother of all inventions.’

Get more practical advice at http://blog.financiallysmartonline.com, and download free financial tools at www.financiallysmartonline.com. Email your comments or questions to advice@financiallysmartonline.com. Please add this address to your email address book in order to ensure you receive a response.

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Grace Stockholders To Vote On 3-for-1 Stock Split Today

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Shareholders of GraceKennedy Limited will this morning meet to consider and, if thought fit, approve a recommendation for a three-for-one stock split.

If approved, shareholders will receive three stocks for each one that is currently held.

According to group CEO Don Wehby, the stock units with a market price of J$115.00 per stock unit prior to the split will now increase threefold with an initial price of J$38.33 per stock unit

He says the stock split would allow GK’s stock to be made available to more investors while further enhancing the market for the shares.

Ahead of this morning’s Extraordinary General Meeting, GK last week issued 59,360 additional GK shares.

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S&P says the referendum result could lead to “a deterioration of the UK’s economic performance, including its large financial services sector”.

Earlier the pound plunged to a 31-year low against the dollar, and UK markets closed lower for a second day. On Friday,

Moody’s cut the UK’s credit rating outlook to negative.

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Caribbean Hotels Named In Jetsetters’ 2016 Best Of The Best

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Three Caribbean hotels have been named in US-based travel and lifestyle magazine Jetsetter’s 2016 Best of the Best awards.

The list which was published recently, highlighted the world’s 20 best hotels in categories ranging from Best Over-The-Top Luxury to Best Safari Lodge.

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