Financial IQ: 5 Tips to Build Wealth and Success

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Financial IQ Philippines Quick Hit(s):

Nice article!!  Being frugal does not necessarily mean you are not as affluent as your peers.


Warren Buffett is worth $45 billion. That wealth isn't only a factor of savvy investing and good business — the "Oracle of Omaha" is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.


Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.


Five tips to build wealth and success.


1. Live Below Your Means.
Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save.


2. Bounce Back From Defeat
With nearly 15 million workers unemployed right now in the U.S., it's easy to get discouraged. Don't! Most successful and wealthy people have overcome obstacles and failure along the way. Steve Jobs was ousted from Apple when he was 30. Today, he's a billionaire and a legend. Plus, after getting fired, he created another billion-dollar media company, Pixar.


3. Self-Promote
Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path. Mark Hurd, who was ousted as CEO of Hewlett-Packard in August, couldn't be kept down for long. Using his business skills and connections, in September, Hurd was named president of Oracle. (Hurd and Oracle founder Larry Ellison are known to be close friends.)


4. Have Street Smarts
Bernie Madoff lived the high life for decades, scamming unsuspecting clients, with a money-making formula that proved too good to be true. Only afterward did we learn that with a little due diligence, most clients could have easily uncovered the fraud.


5. Buy Cheap
The rich can afford to splurge, but that doesn't mean they do.

http://financiallyfit.yahoo.com/finance/article-110926-6907-5-top-5-tips-to-build-wealth-and-success?ywaad=ad0035&nc

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Financial IQ: Building Blocks to Wealth

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Financial IQ Philippines Quick Hit(s):

Nice article, worth reading!!


In starting out on the road to financial health, set these three priority goals to achieve in 2011: positive cash flow, savings goals, and building up capacity to invest.


The first step is making more money and/or spending less, in essence achieving positive cash flow. This can be done by increasing ways to get active or passive income, or decreasing expenses (especially after identifying non-essentials that can be deferred or better yet, done without). Positive cash flow involves earning more money or spending less money, although the ideal state is doing both.


Savings goals involve setting up an emergency fund (equivalent to at least three months’ worth of expenses) then other funds for short-, medium- and long-term needs (ex. a new car or vacation abroad, further studies to advance in career or retirement). Building a separate fund for investments will take time, but so will capacity to decide which investments are suitable for the type of investor one is.

http://mb.com.ph/node/326287/building-block