WEALTH BUILDING TIPS AND TRENDS

Hopefully you have been following my advice and started saving at least ten percent of your income and placing it into your savings account. Once you have saved enough to cover your emergency reserve (at least three months of your current living expenses) plus an additional one thousand dollars, it is now time to look for ways to convert these extra savings into an income source. The simplest way to start would be to open yourself an online brokerage account with a local bank or other financial institution. I would recommend opening a cash account and not a margin account at this time. Borrowing on margin is something I will discuss in a later post as this can be risky and should be used only once you gain more experience. Shopping for a Broker Look for an online brokerage that will give you additional services such as research and investment screening capabilities. I personally use TD Waterhouse here in Canada. Make sure to check out all of your options before making a choice ...

Have you ever been able to smell a good deal a mile away ? Do you have the natural instinct to sniff out a good deal ? If you are like most , the answer is unfortunately no. It takes Work Yes, it really does take a lot of work to find the right real estate deal. If anyone tells you otherwise, their nose is likely too big ( like Pinoccio )  if you know what I mean ! Yes, there are unfortunately no easy ways to sniff out the good deals for most of us. It takes a lot of research and getting to know the markets you are exploring. What To Look For When looking for Real Estate, one must focus on the location and the area dynamics. For instance, look for an area that has an excellent potential for growth. Examples are, new and better access to an area, local infrastructure improvements such as schools and shopping centers etc. If the big money is willing to invest, so should you. Stay away from areas that are declining in popularity as these will most likely become the fut...

Have you ever wondered what the future will hold for yourself and your family ? There are many that would like to know the future.However, this is not a realistic thought. The truth is whatever will be will be. The future is not ours to see. Protect What You Have To protect our future wealth and the wealth of our loved ones, we must take the proper steps today to ensure a smooth transition to a future generation. I know this may sound like a morbid topic, but to create true wealth we must ensure it will endure for generations to come. What better gift can you give to a future generation than one of continued comfort and well being. The more wealth you create, the more important it becomes to protect that wealth. Without proper protection your wealth may become eroded by taxes, inflation or even mismanagement. Trust Someone At some point in your life you are going to have to trust someone to carry on your financial affairs once you are no longer able to. Whether it...

Have you ever heard the saying that you don't know someone until you walk a mile in their shoes ? Take it a step further and you can really get to know someone if you wear their slippers ! The second statement is something I learned when training to be a financial adviser. Basically, it means that you really have to get to know a client before you can help them the most. The Problem On the surface it sounds like a good thing to get to know your client very well before offering financial advise. For the well disciplined and ethical adviser it is a good starting point. How can you possibly help someone until you get to know them and wear their slippers so to speak. The problem with the above approach from the clients' perspective is that the client can become very vulnerable. The client can very easily give up far too much control of their financial future. Far too many times the financial adviser has too much control of their clients' future. Some clients in the ...

Have you ever gone to buy something and ended up spending much more that you wanted to ? Were you sold add on items from a persistent salesperson ? I have, and I know many others that have as well. The Real Truth The simple truth is that these add on items that sales people push on their clients are very good for them. They normally pay out very high commission rates to the salesperson. Even worse, their employers rank their sales staff according to how many add on items they sell. They make their employers a lot of extra money as well. Two items that seem to be common are extended warranties on electronic items and rust proofing on used vehicle purchases. Think about it ! Most electronic items sold today are obsolete a couple of years (or sooner) after you purchase them. Why would you pay for a warranty on something you are no longer using ? And rustproofing on a used vehicle ? Give your head a shake ! The rusting process has already begun the moment a new car is driven off ...

Would you rather have money in your pocket now or wait until the future ? Most people will say that having money now is the better option ! They will be correct. Take Money Now When I say to take money now instead of waiting until a future date, I am not implying that you should not be saving for your future. On the contrary, you should always be saving and investing to increase your future wealth. What I am saying is that if you are presented with the choice of having a lump sum of cash or a steady income today as opposed to taking it at a future date at an increased rate, choose the now option. The reason being is that you will have use of that cash or extra income starting today. You will be able to do with it whatever you want today. Who knows what the future may bring for you. Many things can change in the future especially when governments are involved. An example of this situation is when someone is approaching retirement. If they have a pension plan, there may be ma...

What is the one thing that everyone on this planet has the same to start with? No, it's not money ! Some are born into wealth, many more are born into poverty. The one thing that is the same is your time clock set at zero and counting. The Most Precious Commodity The most precious commodity that each person has is time. Time is something that can never be replaced. Once it's gone, it's gone forever. Therefore it is imperative that we make the best use of out time we have. Don't put off until tomorrow what you can do today. Your tomorrow may never come. Time and Money Much has been written about starting to save money at an early age in order to provide a comfortable retirement. But what does retirement really mean for you ? Does it mean working all of your life until some time in your sixties, then hopefully you will be able to enjoy your life if you can afford it ? How about retiring early, say in your mid forties, while you still have your health and m...

Have you ever heard the term that someone is acting like a dog with a bone ? Or have you ever seen a pit bull let go of anything without a fight ? Well, we could all be a little bit more like that pit bull or a dog with a bone in general. What Does That Mean What I am trying to say is that whatever may be standing in your way to achieving a goal find a way around it, through it, over it or under it. Don't let it get in the way of where you want to be. All challenging obstacles can be overcome if you are determined enough to find a way. If at first you don't succeed, try and try and try and try and try again. I think you get the point . Never give up. You must focus on what you want to achieve and chew on it (like the bone) until you have achieved the results you want. Avoid Distractions Do not let someone, including yourself, distract you from your desired goal. Do not settle on a lesser goal just because it is easier to achieve. If you do, you will never be s...