I’ve always been fascinated by how to build wealth. This has caused me to really take a look at how do we teach people to build wealth? The teaching methods in school and in the financial world deal with tactics like budgets, savings accounts, buying stocks, etc.
I think it’s important to look at the strategic side of wealth building. How do you actually do it? What will help your money grow the most? How can you make long-term decisions to know where to place money instead of being so diversified it barely grows?
Studying trends is helpful, but understanding cycles is what the ultra wealthy do. They look for those long-term trends and find them ahead of everyone else. That allows them to buy at low prices when everyone else is selling. The scoop up bargains and can afford to wait until it pays off.
I’m watching billionaires do this now and Insiders (CEO’s and corporate executives) have been fleeing the stock market. Small investor’s capital has been flowing into the stock market, which is an indicator of a possible top being near.
Why not just make more money?
Yes, it can be done, but not with and old mindset. You have to be ready to accept the new realities of how wealth is being created and how much more abundance is available to us now with the internet. It’s changed everything. It’s made a billionaire in a few years to someone in their 20’s, it’s making millionaires out of internet marketers, and soon, it will be making millionaires of many online business owners who had the foresight to learn how to attract and reach more ideal clients.
Forget what you’ve learned about budgets (which don’t work) and mutual funds. Think about the wealth building process like this:
– You work and create income.*
– Income is invested and becomes capital.
– Capital compounds at a high rate over time to build wealth.
– You must know where (what cycle) to compound it most effectively (highest rate).
– Understand how to identify the end of the cycle before it declines.
Move to the next cycle.
That’s how billionaires invest and create wealth. You can too.
*Determine to generate more income or create a luxury brand internet business on the side and make more income.