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.

Written by Clint Maher - 21st Century Academy
Complete Wealth Education P/L © 2008