What is Creating Wealth?
The process of making money
is more of a short term one, where when one has the goal of creating wealth, they must think long term. This is something that must be there in everyone’s mind when they want to be successful. All young Canadian investors must always think about how any decision they make will affect them in the long term and must choose investment plans that have a large value of return on investment
when we consider a long time frame if they really wish to become adept at creating wealth. An example of bad or faulty investing is to get tips from any broking house and obtain information about which stock is going to rise or fall and then using all your money to invest in them. This is because, when we do this, we might make a bit of cash in short amounts, but then we usually put all the cash we earn back into the market and thus whatever little profit we make will remain tied up in the market. This is only creation of money, and we are not really creating wealth for anyone.
When a person is focused on creating wealth, then he must look at the future, that is at least five to ten years down the line and try to decide or predict which sectors of the economy will be booming during that period. This is the key to creating wealth since it means that one would be able to ensure that he or she has all the right preparations ready to invest in those few selected companies at the right time and also leave at the right time so that they end up creating wealth in large amounts, and not just creating a bit of money. Right now, the booming or profitable sectors, which are ideal for investment, is the banking and financial sector of the Canadian economy.
One must also look at it from the national point of view and try to decipher the signs and see if the Canada would still be maintain its constant growth throughout or whether there would be any fluctuations so that it would be safer to invest in economies abroad. This ability would have been able to help save the hard earned wealth of a number people who had invested heavily in the American economy just before the crisis and now have ended up with a very small bank balance and a lot of debt.
Some tips for the Canadian future economy include investing in land, especially large plots of land in a rather small sized town or city which is very close to a major urban area. This is because it is inevitable that all cities keep expanding and mostly five to ten years down the line, that town might be integrated into the city, and a large space of commercial land would be a gold mine then. There are a lot of tips like these which can help Canadians in the ever present human goal of creating wealth and making a comfortable life for our loved ones.