Welcome to the first (of many, hopefully) Wealth-Building Wednesdays, where I try to offer you suggestions on how to build wealth. This would seem to be a departure from the many other fine personal finance blogs that devote a lot of their time and space to teaching you how to save money, be more frugal, and live beneath your means.
I, and a few others like 7 Million in 7 Years, focus, instead, on earning beyond your living.
Of course, taken to extremes, both points of focus can get you in trouble. On the one hand, you will have a really unsatisfying life; on the other, you may tend to forget about controlling your expenses and find yourself no better off with a LOT more income, but also with tremendous debt and expenses and a lifestyle that you may not even want.
Nevertheless, we’ll concentrate here in this special feature on building wealth from the income side. After all, income potential is virtually unlimited while expense savings are finite.
Plus, it’s my site and I’ll approach this topic how I want!
To be successful at anything, the most important thing you have to master is your mindset. Simply put, attitude is everything. You can have all the talent in the world, tools at your ready disposable, adequate funds, and everything else, and yet, you still could fail.
That’s how life works.
Not only do you have to work smart, you have to work hard. Look at nearly anybody you deem “successful.” They all “got there” through working smart, employing experts when necessary, using appropriate tools and resources, but there’s another critical thing they mastered:
Perseverance. “Sticktoitiveness.” Dedication. Burning the candle at both ends. Hard work is an acquired skill that you learn by practice.
This hard work is your front-end payment to a potential big payoff months, years, even decades later.
Even “overnight sensations” worked tirelessly for years, in most cases, to “make it” overnight!
Now that we got that out of the way…in case you missed it, it’s not good enough to work smart or hard. You have to work smart and hard.
Here’s a link to a book that might change the way you look at things. It’s called MindMap to Riches. It’s all about what I’m talking about here; it’s just a lot more detailed and lengthy in its description. By no means can I cover the how to part of creating a positive mindset in this relatively short post.
Suffice it to say it’s passion, hard work, being smart, making a plan, acting on the plan, and making corrections all along the way. Leave a component out and you may not make much progress, but put them all together and you’ve got a winning combination.
Only YOU can determine what success is. We’ve limited our scope here to say that success, in this context, is increasing your wealth.
What is wealth? From a personal finance perspective, it’s pretty simple:
Assets – Liabilities = Net Worth
The key to increasing wealth is limiting your liabilities to a manageable level while increasing your income-producing assets. As long as you can do that, you’re well on your way to amassing great wealth.
The pillars of a wealth-building system that we’ve described here are usually hard assets like your house, cars, precious metals, plus paper such as cash, money in the bank, stocks, and bonds. A vital component is a wealth-preservation instrument like liability and life insurance in case life throws you a knuckleball.
But the most valuable asset in your portfolio is YOU. You should think of yourself as an income-producing asset, striving always to become more productive through continuing education and training of the mind, body, and soul.
You are the ONLY one you can truly count on. Gone are the days of working for a company for 30 years, collecting your going-away gold watch and a nice little pension. Especially in light of the current state of the economy, you can be sure those days are gone — if not forever — for a very long time indeed.
If you’ve been here before, you know that I am a firm believer in running your own business. It’s difficult, but the rewards are usually worth it. The greatest benefit to me, however, is the idea that I am not relying on anybody else for gainful employment.
If I want more money, I go out and get it
I am not limited by my boss or a 40-hour workweek.
However, I know jumping ship on your career, no matter how tenuous the concept is nowadays, is not feasible for most people. This is where the smart work comes in. Keep your “day job” and do all your “own” business after hours. Of course, staying up late at night eventually becomes hard work, but you have to devise a plan to manage your time and health.
There are too many opportunities to mention that have potential for solid earnings. Private Label Rights publishing, ecommerce sites, ringtones, affiiate marketing, credit counseling and/or debt management companies — all of these have HUGE potential. Probably always will.
We’ll tackle some of these methods later in the series. For now, just find out what you can about setting your mental ship afloat. Determine what you’re good at, what interests you, what you’re passionate about! Get your head on straight and set yourself up for success!
Welcome to the May 6, 2009 edition of kids and money.
The Smarter Wallet presents Amazon Kindle Review: Electronic Book Reader Pros and Cons posted at The Smarter Wallet, saying, “Is the Amazon Kindle worth buying for the family?”
Silicon Valley Blogger presents Best High Interest Savings Accounts In Online Banking posted at The Digerati Life, saying, “Show your kids how to pick the right savings account.”
Pinyo presents College Students Should Take Responsibility For Their Financial Situation posted at Moolanomy.
Mark Montgomery presents Choosing the Right College Curriculum–How Much Choice Is Right For You? posted at Great College Advice, saying, “College-bound students sometimes believe that all college academic programs are the same. Not so. This post and short video explain a couple of very different alternatives students have in selecting the right college for them.”
KCLau presents Do You Have a Wedding Debt? posted at KCLau’s Money Tips, saying, “Most couples want to begin their married life auspiciously and free from the problems. However, it is not uncommon to hear about married couples who go into debt just to get married. Article explores the reasons.”
Travis presents Money for Time, or Time for Money? | personalwebguide.com posted at Personal Web Guide.
John Russell presents In An Accident? posted at The Low Cost Auto Insurance Guru, saying, “You pay your premiums, but when your car is damaged, you balk because you fear a claim will mean higher insurance rates.”
Sonja Stewart presents How to Recession-Proof Your Family Life | Parenting Squad posted at Parenting Squad.
FIRE Getters presents Why do we get laid off? A complicated corporate work culture …. posted at FIRE Finance.
Jack Schmidt presents 10 Really Fun Things You Can Do Today on the Cheap posted at SectorMatic Money Journal, saying, “Personal Finance | Everything for the Big Spender on a Budget. Now you can live like a fat cat, even if you’re on a money diet.”
Jack Schmidt presents How To Pick A Profitable Mutual Fund.
Patrick @ Cash Money Life presents Upromise Review posted at Cash Money Life, saying, “Earn free money for college savings with rebates from UPromise. The money can be used for college savings, current college expenses, or repaying student loans.”
Patrick @ Military Money presents Financial Planning For Military Families posted at Military Finance Network, saying, “Financial planning tips to help families prepare for emergencies and other life events.”
sherin presents My personal plan for creating investment portfolio for kid posted at THE MONEY MANIAC, saying, “Sharing my personal experience on creating a portfolio for my kid.”
Jack Schmidt presents Sign of the Times: “Going Out Of Business – Eat Fast!”
Jack Schmidt presents Starting Young: Teaching Teens to Save Money.
jim presents Citi Forward Credit Card Review: Rewarding Responsibility posted at Blueprint for Financial Prosperity.
Dan at Everydayfinance presents What I Learnd at the Park – An Easy $400 per Hour! posted at Everyday Finance, saying, “This article highlights a unique and easy way teenage kids can make Hundreds of Dollars per hour this summer!”
Bank Champ presents I Bond Fixed Rate Announcement (May – November 2009) posted at Bank Champ.
Patrick @ Cash Money Life presents How to Decide Whether to Be a Stay at Home Mom or Working Mom posted at Cash Money Life, saying, “These are some factors to consider when deciding between being a stay at home mom or returning to the work force.”
Jack Schmidt presents Home Improvement Loans – Transforming Brick and Mortar.
Jim DeSantis presents Divorce: What To Do About Medical, Life, Homeowners, and Auto Insurance! posted at On Line Tribune | Marriage Matters, saying, “Covering the insurance needs of yourself and your children after a divorce must be considered during pre-divorce settlement negotiations with your soon-to-be ex. This is largely a matter for lawyers but you need to think ahead to protect everyone who depends upon you.”
That concludes this edition. Submit your blog article to the next edition of kids and money using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
I admit I know nearly nothing about Dave Ramsey (I know he’s some sort of “financial guru” that a lot of people follow), but I’ll tell you, in the interest of disseminating information, that he’s holding a town hall meeting tonight about “The economy, your money, and real answers.”
It’s tonight, April 23, at 8 PM ET and 7 PM PT (West Coast delay, what’s new?) – sign up here – Town Hall For Hope with Dave Ramsey (Click the “Attend the Event” yellow button).
Welcome to the April 22, 2009 edition of Kids and Money.
Nate Desmond presents Giveaway: Free TurboTax Online Premier Tax E-Filing posted at Debt-free Scholar.
KCLau presents 5 Ways To Take Charge Of Our Finances posted at KCLau’s Money Tips, saying, “Are we doing the right things when it comes to managing our finances? Ask yourself five questions to know if you’re on the right track.”
Frank Vertin presents Just Buy Index Funds Directly posted at NO LOAD INDEX FUND, saying, “Buying an S&P 500 index fund through an investment counselor can substantially increase your initial purchasing costs and and drive up your annual management expense fees. Unfortunately, the vast majority of individual investors buy mutual funds and ETFs through brokers and investment advisers. Rarely do financial advisors recommend that you buy index funds with low fees. This is because low cost, no load mutual funds do not pay them as well as loaded, high fee mutual funds.”
Larry Russell presents Most Individual Investors Are Poor Personal Portfolio Managers | Personal Investment Management posted at THE SKILLED INVESTOR Blog, saying, “Young investors should learn early about investment efficiency, and they will then know more than most of their parents do about wise investing. Investors more easily understand investment costs that are directly measurable, such as fees deducted on investment statements. However, many investors ignore or are unaware of the opportunity costs of their sub-optimal investment behaviors. Opportunity costs are usually much more difficult to measure directly, but these investment costs can be even higher than more visible investment fees.”
Walter W. Fouse presents 7 Ways to Pick the Best Noload Mutual Funds and ETFs posted at Best No Load Funds, saying, “The vast body of investment research studies show that there really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work.”
Richard M. Rothschild presents The Top 14 Low Cost Taxable United States Bond Mutual Funds (Low Minimum Deposit) posted at Bond Market Index Funds, saying, “The top 14 low cost taxable US fixed income funds with a $10,000 or lower initial deposit. Low investment management fees are very important with fixed income funds. Simply put, if you pay higher bond mutual fund fees, then these bond management expenses tend just to be a deadweight loss to you. When you pay more in bond mutual fund fees, you are just wasting your money.”
Ralph Jean-Paul presents Building Self-Discipline posted at Potential 2 Success, saying, “The most disciplined business people are usually the most organized, efficient and successful. They are also the people that make the most money. Learn to build self-discipline in your personal and professional life and see the difference it will make.”
Big Cajun Man presents Canadian Personal Finance Blog » Blog Archive » Advice for New Grads? posted at Canadian Personal Finance Blog, saying, “When your kids do finally graduate from college, make sure they keep this in mind.”
Mike Pastore presents Thinking of saving money for your childs college education? IRA or 529a plan? | Mikes Millions.com posted at Mikes Millions.com.
Buck Weber presents Search for Scholarships posted at THE BUCK LIST, saying, “It’s that time of the year again for high school seniors. Testing for the ACT & SAT, filling out the FAFSA, gathering and sending transcripts, college applications and letters of recommendation are all part of the annual hectic last few months of the high school experience.”
Madison presents Summer Jobs for Kids – Ideas for Summer Jobs for Kids posted at Kids and Money.
Verna Morris presents Five Experts Agree: You Need a TIPS ETF In Your Retirement Portfolio posted at ETFdb.
Jim DeSantis presents 3 Reasons That Can Cause Your Family Budget To Fail posted at Free Family Budgeting eBook from On Line Tribune, saying, “Money is the only tool you have to secure your future and the future of your family and to live a good life today. Unless you get spending under control and start treating your household like the goldmine it really is, you are destined to struggle financially for the rest of your life.”
Jeremy Ulmer presents How To Cold Call Effectively: What To Say First posted at Sales Coaching | Business Coaching | Life Coaching, saying, “never too early for kids to start learning some of these skills…to make money…”
Clair Schwan presents Money Management – Making and Retaining Wealth posted at Frugal Living Freedom, saying, “This article provides an overview of basic money management concepts with an eye toward accumulating wealth by being more responsible with it.”
Patrick @ Cash Money Life presents How Much Life Insurance Do You Need? posted at Cash Money Life, saying, “This is a question everyone should ask themselves – particularly if they have a family that relies upon their income.”
Silicon Valley Blogger presents Zecco vs TradeKing: Which Online Stock Brokerage Account To Choose? posted at The Digerati Life, saying, “Help your kids invest early by opening their first account with a solid online broker.”
Summer Munyon presents How To Find The Bottom Of The Real Estate Market posted at Tallahassee Real Estate Blog, saying, “If you want to know the beginning of the next phase of the market turn, just keep an eye on the green line in the graph below. You can visit this graph (updated twice per week) at The Market Bulletin.”
hall monitor presents Two Colts Neck High School students accused of counterfeiting money posted at DetentionSlip.org, saying, “To be filed in the “What NOT to do” column.”
That concludes this edition. Submit your blog article to the next edition of Kids and Money using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Welcome to the March 2, 2009 edition of Kids and Money. It’s been a while since our last carnival, so this is a BIG ONE. I’ve tried to put the submissions into logical blocks for easier reading.
jim presents Ten Recession-Busting Money Tips for Young Professionals posted at Blueprint for Financial Prosperity.
Silicon Valley Blogger presents Lower Your Car Insurance Rates! How To Cut Insurance Premiums In Half posted at The Digerati Life, saying, “If you’ve got kids, driving safely and carefully is a must. And doing so will most likely lower your car insurance rates as well.”
Annette Berlin presents Printable Toys For Pre-Teens posted at Craft Stew, saying, “Older children get tired of toys fast. Rather than spending a small fortune to keep them constantly satisfied, let them create their own playthings from cardstock and a printer.”
Brian McKay presents CD Rates posted at MonitorBankRates.com, saying, “Finding a decent rate on a certificate of deposit account these days isn’t an easy thing to do. CD rates have been coming down so fast recently the average 12 month CD rate is nearing just 2.00%.”
The Shark Investor presents Strategies For Raising Funds: Borrow Your Way To Wealth posted at The Shark Investor, saying, “How and when to use loans for investing”
Len Penzo presents Using a Ledger to Teach Kids Money Management posted at Len Penzo . Com, saying, “Even kids as young as 6-years old can learn personal finance management skills via this simple bookkeeping plan.”
Jacquelyn presents The Wise Parent & Child Money Guide posted at WParent.com – Wise Parenting Guide, saying, “Give your child an introduction to the subject of money by reading this article together. This will give your child a general idea about money.”
Silicon Valley Blogger presents Best Cash Back Credit Cards: Your Rewards For Spending posted at The Digerati Life, saying, “Thank you!”
Finance Tips 101 presents Drowning In Debt? Bad Credit Loans May Need To Be Considered! posted at Finance Tips 101.
Astrid Lee presents Suze Orman posted at World Healing, saying, “Article on advice by Suze Orman, the popular TV adviser on personal finance and about how get out of debt. Article also contains video show where she talks about how to determine how much to give to charities…”
Finance Tips 101 presents Scholarship And Grant Information For Interested High School Graduates posted at Finance Tips 101.
The Smarter Wallet presents Student Loan Programs To Pay For My College Tuition Costs posted at The Smarter Wallet, saying, “Thanks!”
OnlineCollege presents Choosing a College: A Simple Guide for Undergraduates posted at Universities and Colleges.
Preparing for Baby
Madison presents Our Family is Expanding… Financial Resources for Babies posted at My Dollar Plan.
The Smarter Wallet presents Will The Obama Economic Stimulus Check and 2009 Stimulus Plan Save The Economy? posted at The Smarter Wallet, saying, “How will your family be affected by the stimulus bill?”
Brian McKay presents What’s in the Stimulus Bill for You? posted at MonitorBankRates.com, saying, “We have listed all the benefits for individuals in President Obama’s stimulus bill that was just passed.”
Ella Moss presents New Economy, or Buy American, Stupid! « Zodiac Times posted at Zodiac Times, saying, “So, the new stimulus package is passed, hopes are up, markets are down, and recession deepens. Everyone is blaming the housing market, unscrupulous bankers and inept previous administration. But very few seem to understand the true roots of our woes, and how deep our economic problems go.”
Money Tipper presents Bring Proof of Age When Flying With Young Children posted at Money Tipper.
Finance Tips 101 presents Alarming Identity Theft Statistics Are Cause For Concern posted at Finance Tips 101.
That concludes this edition. Submit your blog article to the next edition of Kids and Money using our carnival submission form.
Past posts and future hosts can be found on our blog carnival index page.