Practical Keys to Amassing Investment Capital

[vishenda]

Most parents want to teach their children responsibility - how to become self sufficient and succeed in life (after all, no one plans on raising a dead beat). However, very few actually accomplish this task. Why? Because, as parents, we are limited to the experiences our parents passed on to us; the antiquated notion that "responsibility" is simply getting a job, saving a little money, and maybe purchasing a car or some equally important item. Hopefully these seven rules will open your eyes and help you teach your children to avoid the traps that have stolen financial success from so many people.

Wealth Building Rule 1: Put Off Marriage
Your biggest obstacle to attaining wealth is YOU. Too often, people live their lives in a manner that is not conducive to creating riches and then get frustrated at "the system" when they only really have themselves to blame.

One of the most important financial decisions you will ever make is marriage (more specifically who you marry and when). By putting off the walk down the aisle for a few years, you can save a decade worth of frustration. Your first goal should be to become financially independent, with little or no debt, and have your investments in place. Once you have these three things, your odds of success are drastically improved by beginning your journey on a level playing field (after all, the number-one reason for divorce is financial trouble).

Wealth Building Rule 2: Debt is a Disease
With a few notable exceptions, debt is a form of bondage; a disease that enslaves the borrower. A few years ago, there was a young lady attending college who shot herself because she couldn't pay back $2,300 in credit card debt. Although an extreme example, it is a testament to the power money has over peoples' lives. Imagine your life without owing anyone anything; your car, your house, your education, all paid for in full. Like what you see? When you want it badly enough, you will make extinguishing your debt your number one priority.

Wealth Building Rule 3: If You Don't Like Where your Parents Were at Your Age - Do Things Differently
The old cliché that "insanity is doing the same thing over and over expecting different results," holds just as true today as it did when it was originally written. If you don't like where your parents were at your age, stop what you are doing. During your childhood, they taught you all they knew about money. For many people, these early years established how they feel about their finances today. In order to become financially successful, you must do something different than they did. Otherwise, you will end up exactly as they are.

[sweeps]

Originally Posted by vishenda

these seven rules

Where are the other 4?

Wealth Building Rule 1: Put Off Marriage

Sorry, I disagree here. Actually married people build wealth much faster than single people. Granted, having children or going through a messy divorce can strain a couple's finances, but putting off a marriage until later won't help that very much.

Originally Posted by vishenda

Wealth Building Rule 2: Debt is a Disease

Debt is only a disease for those who cannot control their spending. Anyone who truly wants to build wealth must learn to take on debt responsibly.

Taking on a mortgage to buy or build a house that will likely appreciate is an obvious example. But borrowing $30,000 for college so you can increase your lifetime earning potential by $1 million is an even better example.

Originally Posted by vishenda

Wealth Building Rule 3: If You Don't Like Where your Parents Were at Your Age - Do Things Differently

Definitely agree with this one. In fact I would extend it to say, even if you DO like where your parents were at your age, you still have to do things differently. The rules are constantly changing.

[vishenda]

Yes there are actually 7 rules Im supposed to be posting here, I cut into two, having bad connection right now...but I'll post it later=)thanks for reading

[bjl584]

Rule 1) I agree to a point. You may want to expand and say something like, "Put off marriage until you are financially and emotionally mature enough." After all, if you marry someone that shares your values you will most likely build wealth that much faster.

Rule 2) Again, I agree to a point. Frivalous debt is a disease. However, as Sweepsplayer has stated debt that helps you build long term wealth such as a mortgage or education is an investment in yourself and shouldn't be looked at as a disease.

Rule 3) Gotta agree. Don't follow in your parents' footsteps if what they did with their life is obviously wrong and didn't work out for them.

I'm looking forward to reading your other 4 rules.

[Ima saver]

I did read that getting married before the age of 21 usually means you will not amass as much money as getting married later. But I would not put it off much past age 25.

[bjl584]

Elaborate. Why do you feel that putting off marriage past age 25 is a bad idea? Just asking cause I'm 28 and still single. I hope it's not too late for me.

[sweeps]

Originally Posted by Ima saver

I did read that getting married before the age of 21 usually means you will not amass as much money as getting married later.

This is interesting, I'd also like to hear more. But my question would be is it because a couple gets married early that they don't accumulate as much wealth, or is it that people who marry early tend to be from less affluent backgrounds and thus wouldn't make as much to begin with?

My guess is the latter.

[Ima saver]

It is the latter. They also said that people having children before age 20 will never have as much money. Nothing wrong with not being married at age 28, I was assuming the person was engaged right after college (22) and did not marry for a few years. I got married at age 32.

[bjl584]

I would tend to think that age really doesn't matter to a point. Some people are never responsible or mature enough to be in a serious relationship or a marriage no matter how old they are. Granted, getting married in your teens is probably a bad idea. At that age you are still not an adult. There is still a lot of growing up to do. However, I'm sure that there are people in their early or mid twenties that are much more qualified emotionally and financially to handle the responsibilities of marriage than some people in their 30's or 40's will ever be. The opposite is probably also true. It just depends on the people in the marriage.