Think about it; if you want to be rich, then you have to learn how to make money and also make it work for you. There currently are many books and articles on the subject and you probably have read some of them. What impacts have reading these books and articles had on your life? Before you learn how to be rich, you need to know how to budget/ plan. For a good budget strategy;
10% of your monthly income should be for savings and investments,
70% for general living expenses such as food, housing, transport, insurance payments, entertainment and recreation, clothing, medical and other miscellaneous.
The final 20% should be earmarked for payments of debts such as loans, credit cards, emergencies etc.
Money left over after payment of expenses should be put in a surplus account. This will help fund special projects, additional savings and investments, gifts or future education expenses. New exciting and Highly Profitable Business Ventures to consider;
1) Pet Insurance (you need to partner with a large insurance firm)
2) Organic fast food restaurant business
3) Luxury rental shops
4) Upscale retirement communities/ homes with gourmet restaurants, health spas and ocean views. Should be age limited.
The one way to multiply your wealth is by investing. Proper investments, involve acquiring only those income-generating assets. Some of the highly beneficial and profitable investment options you may need to consider are:
a) Trade less and hold tax efficient mutual funds.
b) Save the maximum amount allowed in your retirement accounts in advance if you can afford it. This is because you do not have to pay taxes on gains each year. Money grows faster in these accounts than in taxable accounts. N/B, early withdrawal carries a 10% penalty and interest charges.
c) Invest in smaller companies, where earnings are not as reliable as at bigger firms but where the potential for gains (and losses) is high.
d) Invest on pricey, high growth stocks.
e) Invest in stocks that are in ‘hot’ industries, such as technology or healthcare.
f) Invest in just a handful of companies.
g) Invest in real estate in exotic locales (think global).
h) Snap up rights to wind and solar power sites and sell them to new developers/investors in these fields.
i) Invest in unknown artists and wait for their works to become valuable then sell or collect royalties.
j) Cash in on these farm produce: soybeans, wheat and corn. You may need to consider index fund investment for this option.
k) Be your own boss (franchise). Books to read:
a) Think and Grow rich,
b) Poor dad, rich dad.