Another excerpt from my forthcoming book........

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Brian Tracy said it bluntly in his book Getting Rich Your Own Way: Achieve All Your Financial Goals Faster: Wealth is something that is derived from other modes or sources. You can actually earn lots of money, but you can only consider yourself wealthy if you can actually make your money work for you. This means that your money can help you generate more money (Tracy 2004). Simply put, what’s actually really important is you are able to add more value to your money through a number of things: you go into business or make some investments.

Tracy, Brian. (2004). Getting Rich Your Own Way: Achieve All Your Financial Goals Faster. John Wiley and Sons.

How to Become Wealthy through Investments

When you are talking about finance, investments actually mean the buying of any item or a product that has its own value, with the hope that you will gain favorable returns in the future. In other words, your main aim is to make use of your money so that you will be able to make more money.

So far, there are three basic types of investments that you can do:

1. Cash Accounts. Are you seeing green? Obviously, every time you hear about cash, you will never fail to imagine those crisp green bills that could be the last ones in your pocket. However, when it comes to investments, you should go beyond this. Cash accounts can come in a variety of forms. You have certificates of deposits, money market funds, as well as checking and savings accounts. If you’re basically starting in the world of investments, you may want to start out with this one because of the following benefits. For one, you wouldn’t have any hard time accessing them (as they are very liquid). If you happen to have a checking or savings account, you may have noticed how convenient it is for you to present your check or feed your ATM card and viola! Your cash is with you. You can earn with minimal interest—you don’t need to sweat for it. These financial institutions automatically credit the amount to your account. Most of all, you don’t lose a lot, just in case the risks go against you.

2. Stocks. These are a little bit more complicated than cash accounts, but you will still be earning something out of them. There are already a lot of companies that are offering stock options to their employees, so you may like to ask the management you’re working for if they’re open for stock purchases. However, if you don’t have one, you can simply look for any corporation whose stocks are open to the public. The investment you make to the company is referred to as a share. Hence, if you own 1,000 shares in a corporation with a total number of shares of 100,000, it means that you are a 1 percent owner of the company. You can earn money from your stocks in two ways. First, you have the dividends. You can also earn whenever you sell your stocks at a price higher than the purchase cost.

3. Real Estate. This can be somewhat more expensive to venture into, and you may be affected with the recent slump that’s happening all over the world. Nevertheless, the real estate business still remains one of the best investment methods for a lot of reasons:

1. There are different choices for you. You can always purchase a home and sell it afterward at the most convenient price for you. Or you may build complexes or apartments and have someone rent your units. Better yet, if you have some idle land, you can always sell it per square meter.

2. Real estate properties appreciate. This could be the biggest advantage when you’re investing in real estate. Unlike other properties such as equipment where their value diminish the more that you tend to use them, the worth of your house and land will increase, most especially when they are situated in commercial areas.

3. You don’t have to work that hard for your real estate. The only thing that you may have to worry about in your real estate properties, are the maintenance costs for your properties as well as payments for insurance. After that, you can simply wait for the money to come to you.

A new mode of real estate investment today could be the REIT, or real estate investment trust. In here, you simply have to purchase shares of stocks from these public companies. They are in charge with several properties, ranging from commercial spaces such as shopping malls to residential areas, like apartments, condominiums, and houses.