The key to creating wealth is using your earned money to acquire ownership of certain types of investments that will make more money for you. The minute you consider putting your money to use to create more money you become an investor. An investor is someone who makes a purchase or expenditure with a view to making a potential profitable return in interest, income or appreciation in value.
Let’s consider some types of ownership that can enable you create wealth. Although there are many more asset classes to choose from most beginner investors have found it simpler to focus on three or four of the basic categories of ownerships available. These are:
- Property – This is a tangible place to use your money to create wealth
- Stocks – A way to invest wealth in the general economy
- Ideas – Intellectual property, inventions, businesses etc.
- Business – A good way to add value to the general economy
Nothing stops anyone from acquiring ownership in all four categories above. Notice too that a salaried job is not among the list. So why on earth does everyone think the only way to survive is to go and find a job and that’s it? I speak to many people whose sole aim in life is to get a better job, and another better job, and so on. These people have missed the next fundamental step of true wealth – ownership.
There are loads of opportunities to become an owner. Also, when I talk about certain types of ownership I do not mean depreciating items such as fancy cars or a designer wardrobe. Too many people try too much to own the wrong type of things, and worse still they do so by using credit.
Once you have done your groundwork and acquired the right type of ownership, at a later stage you will always have more left over to buy anything you want, and then you will not need credit to do so.
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