WEALTH BUILDING TIPS AND TRENDS

Income tax time is soon approaching in North America. Many individuals will be investing in their government tax deferred savings plans. They do this mainly to get the tax deduction on last years' tax return. The focus of advertising for these plans is geared mainly at the tax savings and to provide a retirement income for your future. The problem is, none of the advertising tells you the real truth about these programs. These tax deferral programs are just that. They defer your tax to a later date when you withdraw funds. They are not tax shelters as many individuals are led to believe. Let Your Government Accelerate Your Wealth There is, however, one way you can make these plans work in your favor. Calculate the amount of tax you will save by investing in the plan. Now, take this amount (which is paid to you by your government) and invest this as well.You can invest this within the plan itself or outside the plan as you wish. The choice is yours. By doing this, your g

Wealth is a funny word. The word means something different for everyone. No two individuals will give you the same answer when asked for their definition of wealth. In reality, wealth is a destination. It is usually defined as something you don't yet have but really want to have. Perhaps a new car, boat, yacht, etc. Maybe it means to be able to travel here, there and everywhere. Everyone wants something different. What is Your Definition of Wealth To define what your definition of wealth is, you must first ask yourself what it is that you really really want that you do not have today. For some people it may mean to be debt free for the first time in their lives. For others, it may mean having x number of dollars in a bank account or in investments. For others it may mean to have a certain level of income in order to buy whatever they want. The point here is that your definition of wealth will be unique. Even people that we may consider already wealthy may not feel wealth

Spread your Wealth. Don't put all your eggs in one basket. Diversify. Spread your risk. Whatever you call it, don't invest too heavily in any one investment ! Just as you should develop many sources of income, you should also develop many forms of investments to provide that income.( and gains down the road of course ). Why Spread the Wealth By not investing too heavily in any one investment, you will be protecting your future wealth building efforts from a potentially devastating loss. If something bad were to happen to your one big investment, it could take you years to recover, if ever. Bad things do sometimes happen to good investments and by the time you find out it can be too late. Markets react extremely fast, especially to bad news. Develop a Plan  To avoid investing too heavily into one investment, or even one sector of the economy, it is important to develop your own plan. This plan must be tailored to your own personal comfort level. Everyone's

Most of us have started our working lives by working for an employer. It is the easiest and most common way to start earning an income to pay for our everyday needs. Unfortunately, our governments also realize that most individuals earn their income in this way. As a result, they have targeted their tax collection efforts squarely at the employed worker. Average workers can pay up to half of their income in taxes, therefore, almost half of the year they are in essence working for their government. Your job as a current employee and future investor should be  to do whatever you can to reduce the effect your government's tax collection efforts has on your bottom line. Everything that is legal of course. What Can Be Done Don't get me wrong, I believe everyone should pay their fair share of taxes to support the societies we live in. The problem is though, there is nothing fair about most government tax structures today. They tax the masses and the wealthy get off paying m

Renovations can drastically increase the profit you will make on a Revenue Property. There are many forms of renovations that can be done, but not all have the same effect on your bottom line. It is important to know which ones pay and which ones just waste your hard earned money. The following suggestions will help you decide what is most profitable for your given situation. Renovate When You Purchase Some Renovations may need to be done after first purchasing a property in order to get it up to code and to ensure that the property can be insurable by your insurance provider. Insurance companies seem to be getting much more strict than in the past, especially when it comes to electrical issues. For example, you may need to replace older wiring systems and/or service panels. Ensure to check with your insurance provider before purchasing the property. I would also recommend upgrading old plumbing if needed. A leaky pipe later on can cause a lot of damage. Most tenants won'

In order to build Real Wealth, a person must first free themselves of the everyday financial burden of living and paying the bills.There are 5 distinct steps (or goals) that every person can take to shake off the chains that are holding them down. Step 1  Solidify Your Main Income Stream - What this means is that you must provide yourself and your family with a good, solid level of steady income that you can count on. This income must be of sufficient amount to pay all of your everyday bills with money left over. For most of us, this income stream will be your job or your career of choice. It should be your first goal to do whatever it takes to ensure a strong steady stream of income flowing into your bank account. Without this steady flow of income, it will be near impossible to ever be truly Financially Free. Step 2 Pay Down All Consumer Debt - In order to be Financially Free, you must pay down all consumer debt. This includes all credit card balances, student loans, line

Individuals with a high income face many additional challenges when it comes to building real wealth.                                                                         Taxes The biggest challenge is the amount of income tax their governments charge on their earnings. In many countries, tax systems are designed to take a higher percentage of your earnings on the upper portions of your income. In fact, I have seen the government take almost half of the upper income portions on high income earners.When this income is earned through employment or pensions, there is quite often very little that can be done without expert help.                                                                         Lifestyle Another challenge for high income earners is lifestyle. It is human nature to spend more as your income increases. Most people adjust their lifestyle to their current income level. Just look at the many celebrities and sports stars who were paid high incomes and are now b

We all have only so much time each day. How is it then that the really wealthy seem to get so much done in a short period of time ? Quite simple actually. They use other peoples' time. In other words, they pay individuals to work for them to do the less desirable and often very repetitive tasks. This basically frees up their own time to concentrate on what really makes them the money. Finding new opportunities. For instance, the top salespersons in many fields pay an assistant a fixed salary to do the basics of customer follow up and to fill out paperwork etc. This allows them to contact more potential customers and generate new leads and sales opportunities.                                                              How Investors Use OPT As an investor, you can use other peoples time as well. For instance, if you own one or more pieces of revenue real estate, consider hiring a management company. You will generally pay them about 10% of the rent collected. They will