21st Century Academy

Creating Wealth With Buckets

Wealth buckets allow you to invest wisely. If you utilise some type of bucket system not only are you protecting your assets but you’re also going to encourage growth. With your assets, you can have a bucket of safety and a growth money bucket as well. Between the two, you can feel safe and you can grow your wealth.

Two Wealth Buckets: Safety and Growth

By investing in several safe areas, you’re going to be able to sleep at night. Guaranteed investments and property investments tend to be much safer. Some guaranteed investments only grow a small amount every month or every year but that’s okay because you know that your money is safe.

Safety is wise but a little bit of calculated risk is also smart. Those who take no risks reap very few rewards. With some of your money, you should take a calculated risk. If that risk pays off, you can take the dividends and split them between your safety bucket and your growth bucket. This way, you’re always building your safety net and anything lost through high risk investments won’t sting as much.

Wealth Bucket Example

If you invest $500 in the stock market and make $1,000.00 you could take $600 and put it somewhere safe and the other $400 and put it into medium to high risk investments. Anything you earn in the growth bucket will be considered “gravy” and because you’re still growing your portfolio through the safety bucket, you’ll be making smart investments as well as maximising your chances for great rewards.

Creating Wealth

One of the best ways to create wealth for yourself is to increase your income so that you can:

1. Pay off debts

2. Have more money to live on (and enjoy!)

3. Save money for the future.

Not only are you accomplishing your financial goals this way but you’re probably going to add years to your life. We shorten our lives by being eaten alive with stress regarding our finances. If you can increase your income today, you can melt away the stress that threatens tomorrow.

How do you increase your income?

You might be thinking that right now you’re stretched to your limits financially and with your time. But if you find a way to make more time, you could buy yourself time and quality of life. A little sacrificing now with some hard work and some tough choices could be the greatest gift you could give yourself and your loved ones because your future will be brighter and lighter hearted. So how do you do it? You need to

Here are some tips to help you get started:

Get out of debt ASAP

As you get out of debt, allocate ½ the money you’ve been spending on interest and payments to your retirement fund and the other ½ to increasing your quality of life. (Hobbies, vacations, renovations, etc.)

Live on a budget now

If you buckle down and stop spending frivolously, you’d be surprised at how much extra income you’ve got for paying off debts and improving your situation. A budget doesn’t have to be constricting, it could actually be freeing.

Find a sideline

Find a way to make extra money. This could be in the form of the stock market, property investment or a part-time business that you can run. If you’re living on the money you get today, all this extra money derived from these ventures should go toward your future goals and plans of being debt free and creating a rainy day fund.

Become a financial guru

One other important thing to do is to become a guru about money. You can never be too educated about finance so take time to learn as much as you can about finance.