The Principles of Wealth Creation
Here are 5 simple steps to wealth creation:
1. Set in motion a plan of action - start as early as possible to implement your unique financial plan, based on your goals and objectives.
2. Develop a professional advisory board - financial advisor, accountant, lawyer, preferred lender, money managers, etc.
3. Pay yourself first - it’s a worn-out phrase, but still the most effective tool for long-term nest egg building.
4. Use other people's money to finance expansion and growth - maximize your investment pool through the use of conservative equity management. If appropriate for your goals and risk tolerance, take advantage of the prudent use of borrowed money for both RRSP’s as well as non-registered (open) investing.
5. Buy equities - invest primarily in quality businesses in expected growth industries like healthcare, telecommunications, entertainment and media, technology and financial services. Avoid speculation and hold for the long term. Stocks should be viewed as small parts of a business that are for sale.