What Is True Wealth

Posted by dexter

February 23, 2009

True wealth can be defined as financially free to do what ever we want and when ever we like. In other word true wealth enable us to have total freedom in choosing how to spend our time and our money.

Have you ever notice that any hard-working doctors or highly paid professionals who make $100,000 a year but no time freedom? Even though they have the money to buy and do what they want, most do not have the time because they have to keep working day in and day out. In other words, they must work to create income so they can maintain their lifestyles.

People who are chained down in their jobs, including you and me – no matter how much or how little we earn, we are victims of income creation because we traded time for money. Where would the high-paid doctor be if he developed arthritis in his hands and could no longer create income and had to stop working? Where would you be if you could no longer create income because you were retrenched? Isn’t that’s an ultimate nightmare for most of us!

The problem with income creation is that if we stop working, the income stops coming in. And if we do not have any income stream other than our job, we’re heading for disaster! It takes an average worker half his lifetime to purchase a home, accumulate some savings and retirement benefits. However, it takes only about two to six months of unemployment to wipe up all. Wealth creation is opposed to income creation; it isn’t limited by the time-for-money trap because of the principle of leverage.

The rich get richer because they take advantage of leverage by investing their money over time. Income creation is temporary – you need to work to trade for money. Wealth creation is permanent – you escape the time-for-money trap by putting your money and time to work for you. Leverage allows us to use various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Leverage can be created through options, futures, margin, forex trading and other financial instruments. For example, say you have $1,000 to invest. This amount could be invested in 10 shares of Microsoft stock, but to increase leverage, you could invest the $1,000 in, say, five options contracts. You would then control 500 shares rather than 10. In this 21st Century, there are many wealth building systems tapping on the advance technology that allow leveraging of our time and efforts that virtually anyone can copy and duplicate. These are none other than Network Marketing or Affiliate Marketing.

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