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A man was heard to say, "After my first divorce, I swore that I would never destroy all of my efforts to build wealth again. But my second and third wives had their own plans!"
We all know the story of the 3 Little Pigs. The first pig was in a hurry and built his house of the first thing he could find, which was straw, and the wolf of happenstance quickly blew that down! The second pig figured he was a little smarter, but did not want to spend the money so he built his house of sticks. But the wolf of misfortune quickly blew his house down too! The third pig had a Plan. He was a Smart Little Pig. He understood the Compounded Power of Synergy in a relationship and he loved and respected his wife. So he consulted with his wife and family and they thought carefully about what they wanted, both for now and in the future.
They wanted a house that would last, was secure and would build in value. They made their house of brick and the wolf of fate could Not blow this house down! The part of the story that is not often told is that the third pig did more than build his house of brick. Long before he ordered the brick and hired the brick layers, he and his wife hired a soil engineer to find ground that was solid.
He consulted with the zoning and planning people in his area to ensure that there were no freeways or other commercial development that would impact the quiet beauty and value of his home. Then he consulted an architect that was very good at building quality homes that would last, were practical, functional and would grow in value.
You see, the third pig and his wife took the time to do their homework which is also called Due Diligence. They decided that building a quality house was not just good for their family home, but it also fit into their Wealth Building Plan so that all their piglets would benefit too. They built upon a Solid Foundation, both in terms of structure and planning.
Due Diligence versus Lottery Logic
How many emails do you get a day that have buzz words with an appeal to get rich quick, effortlessly? How many television, magazine, mail or newspaper advertisements do you see a day that contain words such as easy, no money down or get wealthy while you sleep? Your brain, at an intellectual level, knows these types of offers frequently do Not deliver what they claim. You also know from personal experience that things are rarely as easy as advertised.
Inside of you, you know this. Yet it can be enticing to take a chance. This is what I call Lottery Logic. Too easily, many of us are swayed by the argument that Somebody will win the lottery. Yes, this is true, someone will. However, this form of logic tends to overlook facts such as your odds of winning are about 1 in 10,000,000 or greater.
You cannot Build Wealth using Lottery Logic.
In the last two years our economy has suffered from high unemployment, lending and investment failures, declines in retirement funds, budget deficits and much more. First real estate and then the stock market as investments collapsed. So is now a good time to invest in stocks, real estate or some other investment? It could be.
However this is not the right question. The question you should ask yourself is: Is now a good time for You to invest in stocks, real estate or something else? To effectively answer This question, you must have a clear understanding of what you and your family needs and wants now and in the future.
A clear understanding requires that you acknowledge your actual level of expertise in making these kinds of investments and make no assumptions. If you don't have the right experience or knowledge, find viable resources that you can understand and trust.
It is especially important to have a clear picture of your long term goals. Long term goals influence short term goals. Therefor you need a Plan that includes the following:
1. Financial and personal goals 2. The steps to getting there 3. Criteria for how you will work together (Love factors) and criteria for investing and using money (Money Factors) 4. Criteria and steps for educating yourself and finding resources that will help you to do your due diligence before making decisions 5. An Action Plan
Obtaining good information combined with a solid plan, are the foundation for effective Wealth Building.
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