The ILEAD Company® welcomes you to Wealthy Speaker Wednesday. On Wednesdays, I will assist you with strategies of how to build wealth beyond the stage.
Wealth Building – The Power and Pathway to Investing
There are many things you can do with the money you receive from a speaking engagement. It is highly recommended, however, that you consider investing so that this money can begin working for you. Let’s discuss a simple way to begin building wealth and some investing options.
How to Get On the Path Towards Building Wealth
To get started with wealth building, following these steps:
- Make Money. Establish a long-term source of income that would allow you to have extra after you’ve covered your necessities.
- Save Money. Once you have taken care of your needs, create a proactive savings plan.
- Invest That Money. After creating and implementing your savings, achieving your desired savings goal, you need to invest it.
Review Investing Options
There are various investing options you can choose from. Actually, there are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it.
There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.
Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.
Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.
Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth ñ or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine, and in other cases, it doesn’t. It’s a risk.
Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand! Definitely do your homework to make wise choices as you engage upon your journey of investing.
Cheers to you my friend!