With all the uncertainty in the world and economy today, more and more people are waking up to the fact that times are changing and that they need to be thinking about creating wealth.
The industrial age – where job security, retirement and pensions were commonplace – has been replaced by the new information age. People are coming to the realization that neither the government nor their employer is looking out for their best interests. And with the volatility and huge swings in the stock market over the past few years, many people have already lost 10 plus years of stored wealth. Home values have tumbled, foreclosures are soaring, the employment rate is hovering around 10% and taxes across the board are increasing…
Creating Wealth is not as simple as it used to be
No longer is the status quo acceptable. No longer are people going to just hand their money over to real estate brokers, stock brokers, or count on the government’s social security program – “broker” has been the result for most people (not a viable way of creating wealth obviously)!
People in droves are realizing they must take control of their lives, and specifically their finances. More and more people are searching for a viable means of creating additional income and creating wealth. The problem is people are already short on time and long on commitments. They need to create a secure source of income, but can’t find a job that will pay them the $200+ an hour they need to reach their goals given their time constraints. Even if they could, another job only magnifies the problem described above and further increases your tax liability, meaning you actually need to make even more money just to keep pace with what the government’s going to take from you in taxes.
The good news is, you do have options. Other than finding that magical secure job – you know, the one that will somehow pay you thousands of dollars a month after taxes with retirement and other benefits – other than that, what else is there for creating wealth?
One option for creating wealth is investing money. If you’re sitting on a large chunk of cash – and with rates and returns as low as they are today it needs to be very large – this could be one way. Chances are if you have this kind of money, you’re probably already pretty well off and not relying on an employer or the government anyway. But just for kicks, if you were looking to invest as a way to take control of your financial situation, let’s say you needed $10,000/month to cover your living expenses, pay down debt and set some aside for a reserve, etc. $10,000/mo is the equivalent of getting a 12% return on a $1,000,000 investment (before taxes). That’s just not going to happen for the average person any time soon in this market – especially when you take into consideration the government’s portion (taxes). Realistically, you’d need closer to $10,000,000 invested to be able to net $10,000/mo in today’s market. So not a very realistic option for creating wealth for the majority of people…
The next option for creating wealth today, based on my personal experience – and according to the majority of wealthy people out there – is the best way to get ahead and take control of your financial future and that’s through starting a business. Business building by far is how the world’s richest acquired their wealth. So here are the different options when it comes to creating wealth through business building:
Business Building – Option 1 for Creating Wealth:
Start a traditional brick-and-mortar type business. Suppose you have this great idea for an incredible product. You can start a business to design, manufacture and sell your product. This again requires a large up front capital investment and business building financing isn’t so easy to obtain right now, regardless of how good a product you might have. A service-based business may be cheaper to start up but the service sector is shedding jobs and you may have quite a struggle in creating wealth that way. On top of that, 9 out of every 10 businesses fails their first year in business, and the odds don’t get much better for the next couple of years following either. One approach to solve this particular business building problem is just to realize this may be an issue and look to start up 10 businesses. Could be a costly and time consuming process but the education would be priceless and your net worth by the 10th business – if you even needed to start all 10 – would be among the top 1% of the country, if not the world.
Business Building – Option 2 for Creating Wealth:
Buy a Franchise (like Subway or McDonald’s). A Franchise is a proven business with an existing structure or system of doing business. In purchasing a franchise, you are buying a turn-key business where you simply follow directions and odds are good that you’ll make six-figures or multiple six-figures a year with this business building approach. The downside again is cost: some of the highest paying and best franchises will cost you half a million to a million dollars and above just for the rights to have access and be approved to work their system. You still have all the other business building costs of a location, employees, supplies, equipment, etc. Banks are more apt to lend money to this type of business structure due to the success record of these established businesses rather than a brand new start-up but even today that may be difficult. So someone with limited skill could make money with a franchise if they follow a system, but it’s still too cost prohibitive for most considering a business building approach.
Business Building – Option 3 for Creating Wealth:
Home Based Income. With a low cost of entry compared to the options above yet with the strength of an established business model, the Home Based Income model is the best solution for most people looking to take control of their finances. The flexibility of Home Based Income of course allows you to work from home and utilize the internet to tap into an existing company’s successful business bringing together all the advantages of the above business models with few of the disadvantages. One disadvantage though of Home Based Income, due to the low cost of entry, is a home business owner will have access to the tools to be successful but must take personal responsibility to work the business consistently to produce consistent home based income. For self-starters this is no problem; for non-self starters, they need to ensure they find a team or home based income support structure that will help keep them accountable.
One other advantage of the Home Based Income model over the others is the ability to create lasting residual income – income where the money comes in without you having to be present. This does take time to develop, as little as 2-5 years for those very serious and committed to their success, though internet marketing has accelerated home based income in recent years and produced even greater results documented after one or two years.
To learn more about how you can take control of your financial future and begin creating wealth today, visit this site now for more information: Home Based Income
Originally posted 2010-10-24 00:34:36.