Learning How To Speak The Language Of Wealth

by Hank

In order to obtain wealth, it is necessary to know the jargon, so to speak. People who become wealthy and stay wealthy understand wealth-creating terms, such as assets, savings, retirement account, stock and bond accounts, and real estate. They also are well aware that big-screen TVs, boats, cars, or fancy vacations are not the basic words used for creating wealth. These words represent possessions that do not rise in value. Therefore, they do not factor into a wealth-building vocabulary.

Liabilities. Nevertheless, knowing the words associated with liabilities do factor into the creation of wealth, as you have to know what to take out of your portfolio or “vocabulary” in order to create a more substantial net worth (another wealth-building word). Liabilities include such items as loans for your home and car, amounts owed on your credit cards, health-related costs, and student loans. Therefore, it is important to be aware of the items or “words” associated with liabilities in order to reduce their impact on your overall net worth. In order to do this, you must understand wealth-creating terms and phrases, such as “market value,” “pay-off amount” and “debt elimination.”

Becoming Accustomed to the Language. By learning to speak the language of wealth, you will also become better acquainted with other wealth enhancing terms. Learning words and phrases, such a “budgeting,” “planning”, and “financial goal setting” can help you become acclimated to saving. By budgeting, planning, and setting financial goals, you will be able to design a plan to increase your net worth in specific frames of time.

Have Established Certain Financial Goals. You cannot build wealth overnight. The road to prosperity can only be taken by those who set goals and make plans to reach them. It is best to begin with short-term goals first before you broaden your financial horizons. Therefore, in order to speak the language of wealth and learn to live by it you must:

  • Set a specific frame of time to reach a particular goal
  • Create a wealth-building plan
  • Be realistic in your financial assessment
  • Be prepared to make adjustments

To realize a greater net worth then, write down your short-term as well as long-term financial goals. No doubt, you will want to include such wealth-building terms, such as assets, savings, retirement account, stock and bond accounts and real estate into your planning. You will also want to find ways to reduce the use of such words or terms as debt, loan, credit card, medical bill, car loan, mortgage and student loan so you can realize optimum results from your financial planning.

Beauty of a Budget. Therefore, in order to speak the language of wealth, you need to create a budget. This financial tool permits you to see:

  • How much you are spending
  • Curtails you from spending too much
  • Helps you see ways to increase your wealth

The best way to set up a budgeting plan is to determine how much you generate in income on a monthly basis. From this calculation, you will be able to log your daily expenditures and obtain the amount you spend monthly. A budget can also help you see if you’re spending too much on items you really do not need, like that extra daily allotment of candies and chips from the vending machine.

Budgeting and setting financial goals all starts with becoming familiarized with the language of wealth. Make it your aim to learn the language. Use the words to create a better way of life for you and your family.

{ 1 comment… read it below or add one }

Roger Clément Tabougua January 5, 2012 at 6:49 am

Happy New year 2012, Sir!

I am happy to get advice for stopping drifting. Besides, as a language teacher, I am still very endebted to anyone who can help me come out with ideas on HOW TO MAKE PEOPLE RICH THROUCH SIMPLE LANGUAGE OR JARGON. In fact, I feel that that bulk of knowledege is what makes some rich and others poor.
Thank you very much for digging into the subject even more!

Roger Clément from this end

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