If you don't expect to win a lottery, and you don't have the option of inheriting vast sum of money, you have only five ways to increase your wealth:
1. Putting yourself to work - Employment.
2. Putting other people to work - Business.
3. Putting your ideas to work - Inventing, marketing, or consulting.
4. Putting your money to work - Investing.
5. Putting other people's money to work - Leverage.
Working for someone else is the first money making experience for most of us. There are two limiting considerations when you put your financial future in the hands of 'Company'.
* Your success is directly tied to the success and attitude of your employer, over which you have no control.
* Your income and lifestyle are limited by your experience, age, education, the opportunity for advancement, and your ability to sell yourself on the job.
If there are any two words that no longer belong together, they are "job" and "security." Putting together a powerful investment program will put an end to the lifelong dependency on others (employer or government), even if you don't want the responsibility of starting your own company.
There are two approaches to investing- putting your money to work, and putting other people's money to work. you put your money to work when you invest in
* Stocks
* Bonds
* Mutual funds
* Guaranteed Investment Certificates.
* NSC
* Any other direct investment using your own money
You put other people's money to work when you
* Buy a home with a mortgage
* Take an option on a piece of real estate
* Borrow money for your business
* Invest in leveraged limited partnerships
Putting your own money to work is direct and easy to understand, but limits your benefits to the profits to the profits that can be generated by your own capital.Putting other people's money to work can be more profitable, but can also be more risky and difficult to understand. the main benefit of OPM is that you can create profits and/or tax deductions far beyond what your own capital can generate. Using OPM is a step you will certainly want to consider once you have mastered the basics of investing your own money.
Wednesday, July 30, 2008
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1 comment:
nice blog post thanks for sharing
Mcx tips
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