Category Archives for "Building Wealth"

Investment Terms

Understanding successful investing and money management requires a basic knowledge of the language of investments. 

There is no single place where all of the language is offered. For example, real estate, one of the main sources of investment wealth is outside of the source which is recommended here. It will be covered at another time.

Check out this investment language source here.

Using a Budget

The foremost tool for managing money is a budget. A budget is a simple plan and forecast of where cash flow will be sent. Following a budget is the most powerful money habit anyone can have.

Naturally, everyone has expenses for living. Taxes must be paid if not from withholding at work then in some other way.

Married couples will achieve the best results if both parties are agreed upon the near and long term plans for their finances. One popular system for couples is to have three accounts: Ours, His, and Hers.

To get started, keep track of expenses as they are paid. A good way to do this is to use a bank that permits each item to be assigned to an expense category. An excellent online bank for this is USAA.com.

Adding up each category at the end of the month will show a pattern. If the pattern is agreeable, fine. If not, this is the time to make adjustments and decide where to make changes in spending targets.

Enormous advantage is gained by choosing as early in life as possible to save part of every dollar earned, after taxes and before expenses. Pay yourself first. Then allow compound interest to give birth to more dollars as they are earned on your savings dollars.

Begin now. These simple steps are your path to Wealth Without Worry.

Financial Planners

Be your own planner. Use this template and the resources here. Start with looking at the Mint.com tools and USAA.com online banking support. 

In the current economy there is so much reduced demand for Certified Financial Planners and others of the type that the number of planners still in business has dwindled. Only the rich can afford them now.

 The rules of finance are the same for everyone. Learning and using the rules and the tools will work for you just as they have for millions over all the ages.

 The basics are all in the classic book, The Richest Man in Babylon. Written in story telling fashion, it is filled with wisdom and can be understood by children and adults of all ages. It is family friendly reading.  Find it in book, Kindle or Kindle for PC versions.

Wealth Without Worry will be your guide to get you from where you are to where you want to be. Take control of your financial destiny and get headed in the direction of your dreams.

Hidden Treasure

Wealth Without Worry grew out of an understanding of what will work without needless work and worry. To best understand, consider this: 

   There is wealth which is unseen, will serve you well for a lifetime, and can never be taken from you, no matter what happens in the world.

  The knowledge you earn by your own personal study and experience is yours alone. Use it for the benefit of yourself and your family. 

  The classic guide for building your knowledge bank has been used successfully by millions before you. It is titled The Richest Man in Babylon. Your young children can read and learn from it. 

The book was written over 100 years before any of us ever heard of Iraq. 

Where to Begin

The best place to begin to build personal wealth for most people is right at work. And it’s often overlooked. 

  Get the right benefits for you and your family.

  Choose the right package for your needs and ability

  Maximize any employer contributions to plans

  Add any optional benefit which will help you

Get the best advice available, either at work or from benefit providers.

This is your lowest cost approach. Most of your planning has been done for you and professional advice is there for your taking. 

Just keep asking questions until you get it right. This is important stuff – get things set up to best suit you and your family, wherever you are in your working career. 

This is like giving yourself a raise without asking.

How The Rich Judge Wealth

Experience shows that the rich measure wealth in a special way. Rather than focus on income, they keep track of their net worth. 

Just as a business will regularly figure results by reviewing  a profit and loss statement, a balance sheet and a net worth statement, individuals who are serious about managing money do the same. 

Income is interesting. Only results after adjusting for expenses and gains and losses will ultimately count. 

Forms for measuring net worth are available for free online. Net Worth is the Bottom Line!

You can do this!