Having wealth really helps when you want to be free.  Imagine the feeling of no financial pressures and being able to do whatever work you like.  So how do you build wealth when you are just a regular subversive person?  Read on to find out how.

The system doesn’t really want you to be wealthy.  That’s why there are things like high interest credit cards, adjustable rate mortgages, loans for depreciating assets that last longer than the asset does, high fee “investments”, low interest savings accounts and other traps.

Conventional thinking doesn’t get you wealthy.  If you think that you will consume your way to wealth, or get there by following the crowd, think again.

Your job is unlikely to bring you wealth by itself (unless you are at the top of the food chain, which makes you more of an owner).  It is still important, because it is your source of cashflow.  To have wealth, you need to be either a business owner or investor.

To be either, it is important to have surplus money.  That means living within your income.  That means taking a long term perspective, perhaps forgoing a few things in the short term, and thinking things through rather than just buying whatever pops into your head.  You’ll need to save money so that you can invest it in your chosen investments or business.  This is the hardest part for most people.  Its far easier to just pull out the credit card.

Once you have a surplus, you need to invest it, taking advantage of leverage when you can (other people’s money).  Again, this is a long term gain – there are few short term gains available.  You will do best taking a long term view, slowly building your wealth.  This also has the benefit of lower transaction costs and lower taxation impact.

You’ll need to achieve a reasonable return.  You can’t simply save your way to real wealth.  The money needs to be invested, and not in a 1% per annum savings account!

Both business and investment require knowledge.  It is no good investing in something you know nothing about, or starting a business in a market that you don’t understand.  You get knowledge, not by talking to your friends (unless they are successful and experienced themselves) but by reading a range of books, trying things out yourself in a small way and reviewing your own progress.

Over time, your returns will compound, leading to wealth.  After a while, it becomes almost inevitable that you will be wealthy if you continue to follow this process.

There are no “quick riches” in the real world.  That is just a fantasy.  But these steps lead to real, low risk wealth that can give you freedom.

Tags: how to regain your freedom, subversive, taxation, wealth

This entry was posted on Friday, February 19th, 2010 at 9:41 pm and is filed under Daily subversive tips. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.