Anyone can create wealth and there are 4 main points to consider, there easy to learn and if you implement them, you will create wealth with low risk.
You don’t need to work long hours and you don’t need to be innovative, all you need to do is follow the tips below.
So, here are your 4 simple tips to create wealth and an example of how to put them to work for you.
1. You are Responsible
No one else is going to do it for you. You’re on your own, but that’s the best way.
In today’s society we like to consult experts on a wide variety of things, however if you consult an expert on how to create wealth, the only people likely to get rich are them!
They don’t work.
Wealth creation is all about having some capital and putting it to good use make it grow. We will give you an example of how to do this however for now lets look at the other 3 tips:
2. Working Smart V Working Hard
Lots of people work hard, however hard work does not result in wealth creation and there is no correlation between working hard and making money.
If you want to make money you need to work smart and there’s a big difference.
Working smart means, spotting an opportunity and using your own judgment in an area that offers you good risk to reward.
3. Understanding compound growth
Most people are in to much of hurry to create wealth and want to get rich overnight.
Because they are in to much of a hurry, they end up losing their money by taking to much risk.
Wealth creation does take a bit of time to get started, but once you start making money compound growth soon kicks in and your money builds exponentially.
If you have $30,000 to start, to get to $120,000 will take 3 years (at 100% annual growth ) giving you a profit of $90,000.
However, the next year at the same growth rate you will make $120,000 profit in just one year.
As your nest egg builds your money works for you and grows exponentially.
The important point to remember is:
Make your money work for you.
That means taking advantage of compound growth as illustrated above.
4. Understanding risk & reward
Compound growth makes your money work for you as it grows as your profits are re invested.
You must be careful however to keep risk low and NOT lose it.
You need to target:
The highest growth rate to lowest downside risk – Not the highest growth rate.
For example, if you lose 50% on $100,000 you have $50,000 left. You then have to make a 100% to get back to square one.
Which investment would you rather have?
A. One that has potential growth of 200% with a 80% chance of losing all your funds.
B. One that has 100% growth potential with a 10% chance you will lose all your funds.
If you have understood the above, you will see the way to create wealth is to pick investment B.
As you create money, compound growth kicks in accelerating your gains.
Balancing the risk to reward will ensure your money grows swiftly with low downside risk.
That’s great, but can you give me an example of a good investment ?
A great investment to create wealth is land.
It’s cheap, in short supply, has massive growth potential, low risk and finally, it’s simple to understand and invest in.
Prime land is simply in short supply.
If you buy in booming economies and target land next to growing urbanization or a growing infrastructure, you can sell it on at huge profits once the land is developed.
One of the best locations is just 3 hours direct flight from the USA.
In Costa Rica, Americans are buying beachfront property at up to 70% less than in the US and of course it has to be built on land.
This is yielding profits of up to 100% per annum for savvy land investors buying in the right locations.
Even better downside volatility is very low.
So, if you put the 4 tips to work we have given you above buying land in Costa Rica you could soon see your money growing quickly with low risk.
Check out this way of creating wealth and you may be glad you did.