Wednesday, January 4, 2012

A new year, a good time to examine your wealth

As a new year begins, it is a good time to reflect on where we are on our journey to wealth. Let us start with what I consider the most important indicator of wealth, your health. That's right, health is indeed wealth. How's your blood pressure? your cholesterol levels? your liver, kidneys, bones? Whether you are a young adult or a senior citizen, being healthy is of utmost importance and investing towards it is truly worthwhile. The good news is that it is not expensive to make sure your healthy, but it requires discipline to exercise regularly, eat a balanced meal and learn to manage stress properly.

The second component we can examine is the quality of your relationships. How is your relationship with your other half, your children, your parents, friends, co-workers, customers, business contacts, facebook buddies. It is said that your network determines your net worth. This is true since it is impossible to become rich by oneself, we need the right people to grow with us.

Next to examine is our income stream. Where do you derive your income from. Do you get it from a paycheck, are you dependent on someone else? Can you cope if such a source where to suddenly stop, for example if you get laid off from your job. Can you think of other sources of income. How do you plan on increasing your present income to cover for the rising cost of living.
Then the last aspect of wealth is your investments. Do have enough savings in case of emergencies so as not to liquidate your investments at the wrong time. How are your investments, are they growing , do they keep you awake at night. Do you know and understand where your money is, the returns they give and the risk that accompany them.

There you have it, if you are healthy, have a good network of people who support you, if you have stable, multiple sources of income and if your investments offer good returns, then you are a wealthy man. Happy new year and happy investing!

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