How To Start A Wealth Fund
December 17, 2007 · Print This Article
It is a common fact that everything we need to become rich is within our reach. The reason that so few people take advantage of what they already have is because of neglect.
There are a number of good chances nowadays for investors, new or old, to create a long term wealth fund.
It is true that everyone wants to create wealth, but there are many people across the globe that create debt.
It is important to have a goal in order to continue with your investment. Many people start an investment process, but choose to use the cash before it was intended.
There is no need to be irrational when starting a wealth fund. Most people do not realize that starting with only $100 can create a long term wealth fund.
Building a wealth fund is not difficult, but you must not give in. It is your responsibility to secure your future wealth.
There are stocks and shares that you can invest in, but they can be risky. Do not re-mortgage your home in order to build a wealth fund, as again it can be dangerous.
For the beginner, there is a simple way of creating a wealth fund. First, consider how much frivolous spending you do in a typical week. “Frivolous” spending refers to purchases of items you don’t really need, but you do enjoy.
For example, perhaps you spend $15.00 a week on gourmet coffee on your way to work, or you buy a cafeteria lunch every day, or you and your family rent 2 or 3 movies every weekend.
Also include clothing, shoes, books, cigarettes, cosmetics, newspapers, and other miscellaneous items you buy on a regular basis. Make a detailed list of these purchases and you will be surprised at how much it amount to.
It is not necessary to refrain from purchasing these items and putting the money into a wealth fund instead, because it is possible that your finances allow you to make these types of purchases.
But, a good idea is to put aside 10% of everything that you spend on frivolous items. For example, if you spend $15.00 per week on gourmet coffee, you can set aside $1.50 for your wealth fund.
If you buy three new books for a total cost of $41.80, you should set aside $4.18 for your wealth fund or even better, round the figure off, so actually set aside $4.50.
Have a designated jar or money box to place the money into or open a separate bank account simply for these funds. Do not put the funds into a normal day to day bank account, because it will be tempting to spend it.
Each week simply deposit your 10% for the week. And forget that money exists! It is very important that it is not touched and spent.
You will be surprised and maybe a little shocked at exactly how much money you have at the end of the year, because it will give you an idea of exactly how much money you do spend every week on frivolous item. You can then proceed to invest this money into a long-term wealth fund.
Here are some conservative estimates:
If it is determined that you spend $50 per week on frivolous items, you would be setting aside $5 per week for your wealth fund, which would gain $260 in a year.
But let’s be honest, most of us spend much more than $50 per week on frivolous items. It is probably more likely that the majority of us spend closer to $100 per week, which would result in $520 in a year. It doesn’t seem like a great deal of money, but every cent counts and as the years go by it will definitely add up.
Also, do not forget that most of us make a few large purchases throughout the year. If, for example, you were to buy a new flat screen TV for $1200, be sure that you put aside $120 for your wealth fund, which will give it a nice boost and a higher end-of-year figure.
As stated above, there are many ways in which you can begin a wealth fund, but this is a very easy process for the beginner, with very nice end-of-year rewards.
Instead of whining and complaining about how difficult it is to get through life, lucky people take control, and make sure their lives go where they want them to.
When you begin to consciously take these actions and create these beliefs in yourself, you’ll find that good fortune has come into your life.
You’ll attract the best outcome in almost any situation, and bring opportunities you would have missed into your life, to keep improving it in every area.
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