I think the hardest part of dealing with growing personal wealth in today's economy is to have examples that relate to people wherever they are in their financial journey. Some people are just starting out. Others have gotten sidetracked through financial adversities and setbacks. Others are doing fine and just want to do better.
The next law of wealth I want to share with you is this; Invest in solid business opportunities you understand. Avoid get rich quick and pyramid schemes.
We know that to invest is to take our money and put it into a vehicle that has the hope of appreciation. We looked at a few such vehicles (stocks, real estate, etc). What I want to look at is investing into a business concern.
Here are some pointers as you look into this facet of building lasting wealth;
1) Business owners have a great chance of becoming an investor with solid returns - when you own a business you have the choice of investing profits back into your business or investing them into another business. Either way it can be a win-win situation if that business does well.
2) Ownership can be hands on, hands off or control through stock ownership - do you want to own a restaurant where you also are the cook? Do you want to hire a General Manager who oversees the restaurant and you oversee him? Or do you want to purchase a restaurant gaining control through stock ownership? Many choices are available to the wise business owner.
3) Remember, it is impossible to truly become wealthy without equity - ownership is wealth. Period. Those who own nothing have nothing. It's like living your life but never having anything of your own. Develop an "I must own" mentality and thrive.
4) Invest only in businesses you understand - this is paramount. I have invested through the years in real estate companies and my knowledge of the field has saved me some major headaches. I understand the language, I know what to look for in a good investment and I understand how to turn a profit. I have explored other businesses I have an interest in and the advice for others has always been the same; "why do you want to invest in that? You don't understand it." It's no secret that when we don't understand we can potentially lose everything we have invested.
5) Finally, avoid get rich quick schemes and pyramid schemes - there is no such thing as quick wealth unless you engage in illegal activities. And any business that cannot grow unless you find other people to give you money is not a business. You must have either a product or service to sell in order to be considered a business.