What are the Four Proven Paths to Wealth?
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by Ellyn Davis
What are the Four Proven Paths to Wealth? Historically, there have only been three proven paths to wealth—real estate investments, portfolio investments such as stocks and bonds, and building a business. But with the advent of the internet, there has arisen a fourth major path to wealth—internet marketing. Robert Allen, author of Multiple Streams of Income, calls these four paths to wealth the four Financial Freedom Mountains.
Investing in all four will not only give you both the safety of diversification and constant exposure to wealth-building opportunities, but will also provide you with multiple streams of income. Here are the four proven paths to wealth.
- Real Estate. Over 70% of the wealth in the United States has been built through buying, selling, or leasing real estate. There are two major strategies to making money in real estate: (1) buy and hold, either making a profit through the appreciation of the property or creating passive income through rentals or leases; (2) buy and turn over quickly for a profit. Most investors use both strategies so that they create both active and passive income with real estate.
- Portfolio investments. These are investments in stocks, bonds, mutual funds, CDs, tax certificates and other “paper assets.” Portfolio investment is the most popular form of investment for the average investor, because paper assets are so much easier to manage and maintain than any others. Click here for our recommended stock program.
- Businesses. Every great Fortune 500 company started with an idea in someone’s head of how to provide a product, service or idea that others would be willing to pay for. There are seven basic models of business: (1) businesses selling to individual customers; (2) businesses selling to other businesses; (3) businesses selling to governments/government agencies; (4) businesses selling to philanthropies and charities; (5) joint ventures, either business to customer as in network marketing, or business to business partnerships; (6) licensing ideas to customers, businesses, governments, or philanthropies; or (7) providing consulting to customers, businesses, governments, or philanthropies. See the Business Building Resources below and sign up for the Business Building teleconference.
- Internet marketing. With the advent of the “Information Age,” the internet is visited by over 8 billion people a day and provides incredible opportunities for building wealth. The easiest way to make money on the internet is through e-Bay. In fact, you probably have a couple of thousand dollars worth of “stuff” stashed in your closets and garage that you could sell on e-Bay, and that would be a great introduction to business for your children. But there are many other profitable forms of internet marketing. Click here for information about one of the top Internet Marketing seminars.
These four paths to wealth have produced the greatest number of millionaires in the past thirty years. But there is a fifth path to wealth that is fast becoming another Financial Freedom Mountain, and that is Infopreneuring. An infopreneur is an information entrepreneur who markets information. There are many forms of infopreneuring , from writing books, to creating radio or television shows, to producing videos and audios, to presenting seminars, to creating home study courses.
For example, did you know that public speaking is one of the highest paid professions in the world? People will pay for expert advice, and infopreneuring is simply having people pay to learn about the expertise you may have in a certain area.
Multiple Streams of Home Income
We think everyone who is considering starting their own business or who already has their own business and wants to take it to the next level should read these books and listen to these CDs. Sure, it’s going to take you awhile to get through all them all, but the time it takes to study them is nothing compared to the time you’ll waste if you don’t.
Why Should You Buy These Resourcesurces?
We’ve read practically everything worth reading when it comes to business, and have concluded that these 14 resources will cover all you need to know to get a vision for what your business will be like, for what kind of home business best suits you, and for how you would like the business to operate, plus many, many practical tips for building the business into exactly what you want it to be.
These resources cover:
- how owning a business is one of the most important ways you can make a Christian impact on your community
- how to get in touch with what you really want to do
- finding the business that is best for you and your family
- learning to think like an entrepreneur
- understanding principles of money and cash flow
- why it is so important for you to create sources of residual income
- creating different streams of income
- how to develop a business plan
- all the nuts and bolts of building a home business
- the essentials of business management
and much, much more.
Anointed for Business by Ed Silvoso. This book gives a clear understanding of how Christian business people can impact the marketplace for Christ. This is not the thinking we are used to having about business. In fact, the church has tended to treat business people as spiritually inferior Christians, whose main value lies in their ability to contribute money for church projects. Silvoso changes that thinking by explaining what an integral part businesses can play in transforming society. In fact, there are many nations who will not allow Christian missionaries, but who will welcome Christian businesses.
Think and Grow Rich by Napoleon Hill. Napoleon Hill studied all the successful business people of his day and came up with 16 traits that made them different from other people. The good news about Napoleon Hill's research is that none of the people he studied were born with those traits, they developed them. So anybody can do it, even you.
Your Life as Art by Robert Fritz. Robert's work is about recognizing what really matters to you, and then creating your life based on that. So in a way, he teaches you to nourish and equip your deepest desires and highest aspirations so that you live a life centered around those.
The Seven Habits of Highly Effective People by Stephen Covey. Covey’s ideas are so widely circulated that if you don’t read his book, you’ll be at a disadvantage when people start talking about concepts from the book like “win-win” and “synergy.” But that’s not the real reason to read his book. The real reason is that it is one of the absolute greatest distillations of the concepts that it takes to move toward success and effectiveness in every area of life.
The 80/20 Principle by Richard Koch. Did you know that 80% of your success in any endeavor comes from 20% of your efforts? The 80/20 Principle is a cardinal rule in business, because everything about business follows this ratio—80% of your sales will come from 20% of your products; 80% of the effective work will be done by 20% of the employees; and so on. The 80/20 Rule is a double edged sword, because 80% of your activity will only produce 20% of the results you want, so it’s better to zero in on the 20% in every area—your personal life, your relationships, your business—that produces the most results. Koch not only thoroughly explains the 80/20 Principle and the effect it has on all aspects of your life and business, but he gives valuable “keys” for enhancing the 20% that creates the real results.
Cashflow Quadrant by Robert Kiyosaki. Kiyosaki has dozens of books in print. All of them are well worth reading, but to me this is the most life changing of them all. It clearly explains the way money flows in the hands of the poor, the middle class, and the rich, and why you must change your cash flow pattern if you want to become financially well-off. But the most interesting part of the book is the explanation of the four different types of people in business—the employee, the self-employed, the business owner, and the investor—and the thinking and lifestyle that lies behind each. This book will change forever how you look at a job, and also how you look at owning your own business. Read it!
Multiple Streams of Income and Multiple Streams of Internet Income by Robert Allen. These two books are a gold mine of information about how to create “streams” of residual income that make you financially self-sufficient. Most of us are used to thinking in terms of only one stream of income—a job—so the idea of creating multiple streams (no, not by taking more jobs) is revolutionary. These books cover the many, many ways there are to create wealth in such an easy-to-understand way that almost anyone can do it.
The Best Home Businesses for the 21st Century by Paul and Sarah Edwards. This is a huge book that takes the 100 best businesses that can be started and run from home and analyzes the kind of personality it takes to be in that business, the education and skills needed, the start-up costs, and everything else you will need to know to determine if one of these businesses is for you.
Homemade Money: Starting Smart! How to Turn Your Talents, Experience, and Know-How into a Profitable Homebased Business That's Perfect for You! and Homemade Money: Bringing in the Bucks! A Business Management and Marketing Bible for Home-Business Owners, Self-Employed Individuals and Web Entrepreneurs Working from Home Base by Barbara Brabec. These two books are a revised and greatly expanded version of Barbara’s one volume Homemade Money, which has long been considered “the home business Bible” for anyone wanting to know how to start and operate a successful home business. The first book, Starting Smart, contains information and resources for everything from a quiz to see if you really have what it takes to work out of your home, to figuring out what home business is right for you ... and beyond, with information about how to run (and profit!) from a home-based business. This book is the perfect resource for everyone who has the drive and determination to making working from home a reality! This book is a “must have” work at home resource. Bringing in the Bucks! is the most comprehensive "manual" available for anyone starting or thinking of starting a home-based business. No questions are left unanswered. From start-up concerns like zoning, permits, and legal forms of your business, torunning your business day-to-day, this book is the only one that you'll need to get up and running in no time. What's more, Barbara Brabec has solicited the comments of industry professionals from many different fields. They offer tried-and-true tips and techniques to run your business smoothly and, as the title says, "Bring in the bucks"!
The E-Myth Revisited by Michael Gerber. The key to creating a business that survives and thrives and frees you from being a slave to your own company is creating systems. You must turn your business into a system or else all you may have done is created an 80 hour a week job for yourself that probably pays only $2.50 and hour. You’ve gotta read this book if you want to create a successful business. I wish I had read this book 20 years ago.
Conversations with Millionaires by Mike Litman. No, we’re not obsessed with getting rich or withbecoming millionaires, but this book is such a window into the kind of thinking it takes to operate a multi-million dollar enterprise that you’ve got to read it. The book is a series of interviews with some of the richest and most successful businessmen in the country and they share their paths to success as well as their failures. It is fascinating reading.
Building the Business of Your Dreams by Ellyn Davis and Tim Lakey. This is a set of 8 CDs from a business conference sponsored by The Elijah Company. The set includes the following CDs:
• The Entrepreneurial Mind, which is an explanation of the kind of thinking it takes to become an entrepreneur.
• Multiple Streams of Home Income, which focuses on different avenues of home income and ways to look at cash flow.
• Identifying Your Dreams and Business as a Vehicle for Achieving Your Dreams helps you get in touch with what it is you really want out of life and discover a business that is a vehicle for living the life you want.
• Developing Your Business Plan is a two CD set that walks you through every area of creating a business plan.
• The Importance of Business Relationships discusses why having connections with many different people is so important to your business.
• Redeeming the Marketplace is an interview that Ellyn Davis held with Mike Bickle and Bob Fraser of the Joseph Company about the impact a Christian business can have on a city.
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