So how do you build wealth? The answer is no, but when you understand the basics of building wealth, they are a lot easier to implement than they used to be. Basically, to build wealth over time you need to do the following: Make more money than you spend. Save that extra money you make. And invest that extra money you save.
The first part of this three-step process is you must have your own capital. You need your own money, not just a savings account. This money must be invested. Most people want to know how they can save all their money and invest it but it’s hard to save when you don’t have your own money to invest. The only way you can be sure to save more than you invest is to have your own money to invest.
Investing in stocks is what the experts recommend. You have to know when to buy and sell stocks. When you know when to buy you can make a killing in a few short months. If you buy and sell too soon you will lose out. It’s hard to make a killing with this method, but it’s certainly possible. It’s also very risky. Investing in stocks can also cause you to loose money because it’s so unpredictable.
Wayne Saman on investing
A lot of people think that investing in stocks or real estate is a lot easier than saving in a retirement account. This couldn’t be further from the truth. While it’s true that investing in stocks can create a very nice retirement income and can help you grow your money faster than it would with a retirement account, it’s not as simple as saving in a savings account.
Investing in stocks is very different from investing in real estate. You can make a lot of money with real estate, but it takes years to get the properties up and running. With stocks, you can make money in a very short period of time. But it doesn’t happen quickly.
This is why investing in stocks and real estate is a much better plan to use to build wealth than investing in retirement accounts. They provide you with a way to save money quickly without sacrificing anything for a long run. And, unlike retirement plans, they provide a steady stream of income to grow with you through the years. Because they have a long term benefit, these plans are the preferred investment for many people.