Wealth building is a simple process. The hardest part is understanding exactly what is required of you. If you listen to financial planners and accountants, you may be forgiven for feeling confused and lost. Personally it is my opinion that many of these professionals don't know what they mean themselves on occasion, but your obvious confusion is satisfaction enough for them.
There are three little things you need to build wealth. I am not talking about some distant date in the future, I am speaking of the massive and rapid compounding of your seed capital account today and in the next year.
There are three things you need. Bare in mind I speak from personal experience and not from an acedamic mindless parroting of concepts. I am not one of these finance professionals, I am however an investor and have practiced what I am about to tell you for over 5 years now with great success. So these three little things are not in any way mainstream advice. You should consider if it is right for your own circumstances.
The three little things are
Control
Segregation
Compounding Rate
Control
Taking back the power over your money and financial future is the first step. Now I know it's simpler to start saving and hand over the money to some faceless funds manager and hope for the best, but even a "super" fund manager would feel they have done you a great service if they returned to you just 30% per YEAR! That is at the high end and even then you can expect that these gains are offset in the following years with a small or even negative return. Not very thrilling is it.
When you become the investor source yourself, when you take the reins and have a daily input into where your money goes, then you can achieve returns a quantum leap from the stock market. I can assure you that a hands on approach can yield 200% per MONTH!
Segregation
Most people fail to realize that wealth building is not an exercise in saving. To make money fast and easy starting with no investment, you must have a certain mind set.
Unfortunately saving is how most people see investing. They see it as saving money with a small benefit of a yearly percentage increase. The truth is investing is not saving. Even $100 should grow every month without the need for you to work in a job and keep topping it up. It should grow of its own accord, or in the case of opportunity investment, it should grow with your help every month without the need for you to top up the account.
That being said you need to segregate your seed capital into a seperate account that is never touched for anything but compounding growth.
Compounding Rate
The rate needs to reflect the effort you put into your investing business. 10% per year is not going to do anything. 10% per month is better but so much more is achievable if you understand how to find investment objects and use them to create a large compounding effect.
That is the goal of opportunity investment. To create transactions that steadily grow in dollar value to reflect the current level of your seed capital account. Sure, you may not be able to jump into real estate immediately but investment objects exist at all levels of the spectrum.
You should shoot for doubling your seed capital each month. Starting with just $200 if you do it correctly you should have nearly $1 million within 12 months or 12 transactions or growing weight. That being said you cannot do it without leverage. You can easily double $100 into $200 within one month just by buying and selling a few consumer items. But doubling $20,000 is a lot more difficult until we use leverage.
$20,000 used as a downpayment to control a property valued at $200,000 with just a small increase of 10% (which can easily be acheived providing you purchase well) Your return is $20,000 plus your original $20,000 equals a 100% return.
This is very hands on but it is the most easy and simple way to make money fast and easy. Quitting work within 4 months becomes a possibility so you can work full time in your investing business.
I hope this has assisted you to see what is possible. These three elements, Control, Segregation and Compounding rate are the lynch pins of a professional investing business.
Jack Reynolds is an oportunity-investor. He has followed the principles of Martin Thomas and Hayden Muller for over 5 years and has managed to accumulate a large fortune during this time. He trades in luxury boats, Real Estate and Rare stones. You can learn more about the strategy in this article by going to this page http://www.opportunity-investor.com