Wealth Development Strategies

Wealth development--slowly building a strong portfolio of different types of investments--can be done by anyone, regardless of education, financial status or what has went wrong financially in the past. While the basic tenets of needing an income and saving 10 percent of that income apply to everyone, what you choose to do with the remainder is up to you. The ideas are limitless, but here are a few to help you develop your own wealth strategy.

  1. Buy real estate.

    • Whether it's commercial real estate for a shopping strip, rental properties or rehab properties that can be "flipped" for a profit in a short amount of time, real estate is still a solid investment. Property can be sold or used as collateral for other projects. If there is equity, that money may be used to finance other projects, building additional wealth. Take the time to research a property carefully, as well as the going market for the project you envision, and wealth can slowly be built with this investment strategy.

    Sell your start ups.

    • Start a business, spend 6 to 12 months building it--and then sell it for a profit to someone who prefers to buy an established business rather than start his own.

    Get rid of all high-interest debt.

    • If possible, have no debt. But if you are purchasing real estate as a wealth development strategy, that probably isn't feasible. Look at other options for making larger purchases--such as a private financial backer--and pay off any high interest credit cards. Then dispose of them.

    Own your home.

    • Paying a little extra each month on the mortgage saves payments, interest--and sometimes years on the life of a mortgage. That is money in your pocket, and gives you a distinct advantage if you choose to sell your home, remain in it during your elder years, or use it for a legitimate reverse mortgage.

    Control your expenses.

    • Watch where your money is going, and stop unnecessary spending. Purchase the best insurance policies for the lowest amount of money. Buy used cars. Bundle your phone, Internet and TV services. Don't purchase unnecessary items that you neither want nor need. Once the money is gone, you usually can't get it back--a loss of not only the money plunked down, but the wealth you could have attained with it if invested wisely instead.

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  • Photo Credit perfect uncirculated american currency image by Nikolay Okhitin from Fotolia.com

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