Five Steps to Wealth Building

Copyright (c) 2011 Randy Whittle

Most people believe that they must do without now in order to be comfortable in their retirement. This is really not the case. If one follows five simple steps to wealth building, he/she will find that one can be quite comfortable today and in the future.

Step 1 is to explore the different financial opportunities that are available. This includes many different types of investments, including a 401k, stocks, bonds, real estate, and more. Life insurance is also an investment one should consider. Whole life policies build cash value over time.

Some of the investment opportunities one can find are geared toward saving for retirement. Yes, we should prepare for our future, but does it always make sense to just park our money and let it do nothing but sit for 10, 20, or even 30 years? I call that lazy money! What about the opportunities along the way? Is there nothing that can be done with that money in the nearer future that beats just letting it sit there for decades? Is deferring your taxes to some point far in the future—when taxes are likely to be higher—really a good planning move?

Step 2 is to envision. This means to take a long look at your current financial position and envision where you would like to be in one year, three years, five years, ten years, etc. In this way, you can establish a baseline against which to compare the results of your efforts as well as establish measurable goals and check progress against these goals.

This step will need to be repeated from time to time as the overall financial picture changes. By establishing goals, you create an attainable target that allows you to focus your efforts on building wealth to that level.

Step 3 is to embark on the road to financial success. At this point, you should be working to establish specific financial strategies that make your money work harder so that you begin working toward the goals established in step two. For most people, the expertise of a Prosperity Economics Advisor prove to be quite useful at this stage of the wealth building process. These individuals are trained in formulating strategies that make every dollar work in multiple ways to accelerate itself and create multiple benefits.

Step 4 is to execute the strategies developed. This may mean shifting investments in the stock market, locating properties to buy and rent out or renovate and resell, purchasing a life insurance policy, changing the way one invests in a 401k, or any number of things. The key is to execute each step in a systematic and cohesive macro-economic manner that allows you to see the overall picture of how these can all work together for a greater result, rather than against each other.

A Prosperity Economics Advisor can be of assistance at this stage as well, helping the person to make the changes and shifts in financial strategies that were planned for in the previous step. He can also help keep a person on track when things get a bit confusing as the entire financial picture starts to shift in different ways.

Step 5 is to expand on the investment opportunities one takes advantage of. If a sound financial approach has been laid out and the various strategies implemented properly, the person's financial picture will show improvement. As this occurs, the person will become more confident in his/her wealth building strategy and will begin to see new investment opportunities opening up that were not available in the beginning. Taking advantage of these new opportunities is the key to expanding on the plan and accelerating the growth of one's portfolio.

Wealth building is not something that will happen overnight. It requires a systemic approach that involves five simple steps. These steps are to explore one's investment options, envision his/her total financial picture and establish goals for both the short and long term, embark on the road to reaching those goals by creating a financial plan that includes strategies for building and accumulating wealth, execute the strategies created, and expand investments as new opportunities open up and you gain confidence in your plan and ability.

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