FINANCE
Building wealth: back to basics
Have you noticed how often you’re presented
with ways to “get rich, quick?” You may see ads on
television, hear schemes on talk radio or even see
billboards and signs with promises of instant
wealth.
Some of these strategies focus on a particular
form
of investing, ranging from real estate to newSCOTT ARNEY
product development. Some advertisers promise
CEO
Chicago
a huge income that you can earn without ever
Patrolmen's
having to leave your house. Both the internet and
Federal Credit
print media are filled with claims of endless revUnion
enue streams and income generating ideas.
Some of these opportunities are legitimate, but many are not.
The ones that are legitimate, however, have something in common. There are really only two ways to build personal wealth,
and every legitimate wealth-building opportunity includes one
or both of them.
Before I divulge these two ways, let me first put a few qualifiers
in place. This report focuses on building monetary wealth. I am
not counting inheritance, gambling or lottery winnings, or any
other gain that is representative of either luck or a one-time
occurrence. Nor am I providing you a secret to overall happiness.
With that said, the only two ways to legitimately build wealth
are through ownership and the development of passive income.
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While these ideas are modest, they both hinge on concerted
effort and hard work. Perhaps the best things to remember
about the core avenues to wealth are that they are available to
everyone and can be put into practice without any gimmicks.
Ownership is a key to building wealth because of the equity it
typically represents and the value that you can achieve through
the rights afforded to you as an owner. It can be accomplished in
a variety of ways with only one requirement. It must be ownership in something of appreciable value. Owning your own toothbrush or even your own car does not count.
The most common form of ownership is home-ownership,
the importance of which should never be under-estimated.
Home ownership is the most tangible, direct step that most of us
will ever take toward developing personal wealth. Your home is
typically your most valuable asset and becoming a homeowner
is a symbol of your commitment to cultivate your stake in the
economy and your community.
Another common form of ownership can be achieved in the
business world. For every business that exists, there is obviously
an owner or owners to go along with it. There are hundreds of
thousands of businesses currently in operation and almost as
many sizes, types and varieties. Ownership in a business is availCONTINUED ON PAGE 43
FINANCE
BUILDING WEALTH CONTINUED FROM PAGE 42
PROTECTING YOURSELF CONTINUED FROM PAGE 41
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Scott Arney was named CEO of Chicago Patrolmen’s Federal
Credit Union in 2002. Deriving from his keen understanding of
both the worlds of finance and law enforcement, Scott has led the
charge of fine-tuning and growing this highly-respected institution, which is known and recognized throughout the country.
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CHICAGO LODGE 7
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