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Tuesday, November 29, 2011

FIVE WAYS ORDINARY PEOPLE BUILD WEALTH




Sometimes the best way to build wealth is to take tips from people just like you. These ordinary people have done incredibly well doing things that anyone can do. Find out the successful ways they have built up wealth here!

Profiles and Strategies Of Some Typical Wealth Builders

#1 The Real Estate Investor
There’s this guy who took “Kiyosaki’s Rich Dad, Poor Dad” series to heart and actually embarked on a real estate investing rampage starting in 2003. It was prompted by a family crisis involving his disabled child, during which he realized the worries of a parent who wondered how his child would be taken care of once he and his wife could no longer do so. Being in California, it was easy for him to build up equity, take it out and apply it to real estate ventures all over the nation. He now owns around 15 houses in various states and is somehow managing this “empire” on his off days from his engineering job. Kudos to him. By the way, there’s also a way to fail at this too. Main Asset: Hard Work
#2 Stock Market Investor
Everyone’s doing this as far as I know, simply by investing in their retirement plans. With the huge number of plans available these days: 401Ks, 403Bs, IRAs, pension plans and such, there’s no way you’ve escaped building wealth in the last 20 years. What I do find a little frustrating is that while people invest well in their retirement plans, they don’t do so well with their disposable income. Some of my acquaintances view their retirement accounts as their “serious money” while their disposable income is treated as “play money”. From a casual poll I conducted among colleagues, I found that most weren’t sure what to do with their non-retirement funds which could be either stuck in cash and CDs or used to do wild, aggressive trades. A read of these books could help: The Random Walk Down Wall Street or Asset Allocation: Balancing Financial RiskMain Asset: Persistence
#3 Stock Market Trader
This other guy does stock trading part-time and seems to be quite successful at it. Sure there was a time (circa late 1990′s) when lots of people tried their luck at day trading and eventually fizzled miserably. But this guy is good. But that’s because he’s some kind of software genius and mathematical whiz. If I were a betting woman, I’d back this guy on any trade he makes. He says that 99% of wannabe traders are going to lose out because people like him are there to scalp the noobs. Is it arrogance? Perhaps. But he’s hard-working (sleeps 3 hours a night so he can trade after work), is skilled and talented at technical analysis, and has done his homework on that Forex stuff. He’s also very low key but I can sense that “Millionaire Next Door” aura. Main Asset: Genius
#4 Serial Startup Hopper (or Juggler)
Now here’s the typical way people try to get rich around Silicon Valley and it was the norm in the 1990′s. It actually worked for a few former colleagues. I admit, I joined a startup myself but that didn’t pan out. Instead, I lost out on $13,000, the amount of money I spent to own my stock options on the penny in order to maximize potential return in case the startup I joined actually succeeded. It didn’t work for me, but it did others, who amazingly went from one successful startup to another, raking in stock options that made them millions with every stint. There was this regular engineer who managed to build a massive fortune by just being at the right places at the right time. He then eventually bank rolled his money into a company he founded that netted him at least double his net worth in a span of 8 months. Life flies around here I guess and some were born with a clover leaf tattooed on their bum. Of course that is the exception, but you can’t help but find inspiration in that. Main Asset: Luck
#5 Consultant (or Contractor)
This has worked well for those who ride any kind of job boom such as the tech wave in Silicon Valley in the previous decade. Depending on the job market, this can be a lucrative strategy. During a tougher job market, then your skills and knowledge will be responsible for getting you those higher consulting fees. If you want a big income as a consultant, it’s all a matter of being an expert in a competitive field. Or being the only one offering such a service. Main Asset: Skill
Get the entire story at The Digerati Life!

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