Building The Foundation For Wealth

You wouldn't build your home on anything less than a solid foundation. Similarly, you can't build wealth and financial independence without first having sound foundational principles to build upon.

I have found that many people are working on wealth building strategies such as maximizing their 401K returns, aggressive stock trading, and real estate investing without such a foundation.

Most of my clients are coming from a "one step forward, two steps back" cycle of wealth building that gets them nowhere in the long run.

There are steps you can take to make sure that you are maximizing and protecting your gains at the same time. Without these steps, you are destined to experience the gain-loss cycle which, in the end, is like spinning your wheels in the mud.

Discover how your employment circumstances affect your wealth building strategy and have more of the things you want by identifying your biggest expense and managing it without having to make more money.

Most people take gains in their cash flow to mean they can spend more on things they don't need. It is human to want to surround yourself with the things you want to match how you feel about your new income from investments or a raise at work.

But what happens here is that you lose future earning power and you rip out pieces of your wealth building foundation because you are not putting new income to work by investing in your debt.

People talk a lot about returns on investments. Think of the return on a 13% credit debt that you pay off in 5 months aggressive debt investment. It's NOT just 13% you are saving by investing in your debt!

Once that debt is paid off you can turn the payments you were making toward a larger debt, sometimes doubling the rate at which you are able to pay off that bigger debt. Combined, the return on your investment here is massive compared to regular stock investing!

Wealth building, in the beginning, is actually started with debt reduction and strict management. A change in attitude about your debt, from "liability" to investment, is the first step in true wealth building.

Today you should sit down and find the monthly expenses that truly don't mean as much to you as building wealth does. See how you can eliminate some of your spending to invest in your debt in order to maximize your cash flow faster, giving yourself a raise!

Take most of what you now have available per month and turn it toward the next debt ? raising the regular monthly payment by as much as you can while rewarding yourself with a little thing to note your accomplishment.

Before you take on another investment, think about the wealth you can build with the money that currently goes to debt. Once you have mastered your debt, all that money can go toward investments, savings, and living expenses that far outstretch what you are able to experience now.

The only aggressive investment strategy that has absolutely zero risk is debt investment. You cannot lose and the gains are always tremendous compared to any other form of investing.

Live your retirement years free of financial stress, relaxed and enjoying life due to automatic income streams you create through the powerful investments you can afford AFTER investing in your debt.

C.C. Collins is a respected financial strategist and investing expert. His NetWorthPublishing family of sites offers information and help with stocks, mutual funds, retirement planning and wealth building.

---

Success Trading: Some Basic Terminology for New Traders

The world of trading can get very complex because the... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books,... Read More

Copy Cat or How to Use a Successful Trading System

How many books have you read about successful traders? How... Read More

HYIPs Investments or Scams?

High Yield Investment Programs (HYIPs) appear at first to be... Read More

Discover the Foundation of Retiring Wealthy - The IRA!

Let me tell you about some legal ways to avoid... Read More

Powerful Options Basics Lessons Improving your trading in 180 days.

An option is a traded security that is a derivative... Read More

How To Create Wealth In The Stock Market

First and foremost, an opportunistic strategy for creating wealth in... Read More

Remembering TEOTWAWKI and Learning from It

Its only been about 5 years since we had major... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really... Read More

Investing: The Art Of Making Your Money Work For You

There is a lot to know about investing. It all... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More

Playing With Money - And Making More

Ready to start playing with your money? Not interested in... Read More

Useful Tips on Investing

Here are some useful tips on investing. When you make... Read More

Porters Five Forces Analysis

If you've ever listened to Warren Buffett talk about investing,... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

Why have Investment Plans for the Stock Market

If you do not have an investment plan in the... Read More

Lessons in Transition

Q: What have been the most successful approaches to attracting... Read More

Shop More, Save More for College Gimmick or Reality?

The man sat in a chair beside a dressing room... Read More

Five Sure Fire Way to Secure Your Financial Future

"You can be poor when you're young, but you can't... Read More

Buying a Home - Your BIGGEST Investment

This column has often focused on intangible investments like stocks... Read More

Annuity Investment Guide

While there is not a lack of information on annuities,... Read More

Rules of Simple IRA Your Business Needs to Know

A Savings Incentive Match Plan for Employees plan, better known... Read More

Mutual Fund Returns May Not Be As They Seem!

Arthur Levitt, during his tenure at the SEC, experienced many... Read More

Beta Factors: How They Can Be Used In The Current Situation

Ever since the turn of the century, world stock markets... Read More

CYA

You all know what CYA stands for. Of course, Cover... Read More

How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about... Read More

Missleading Fund Names Wreak Havoc On Investor Returns!

Mutual fund managers use fake fund names to part you... Read More

Who Wants To Be A Millionaire?

I am sure you have probably read about the power... Read More

Asset Location ? Increase Investing Returns & Reduce Your Taxes

Location ? Once the holy grail only for real estate... Read More

Creating a Financial Future--Putting Your Plan Into Action Part 2

Real Estate can be a useful tool for investing. The... Read More

Why Do You Want to Become a Online Trader?

Motivational guru Tony Robbins teaches that the reason for doing... Read More