WEALTH FOR ALL, A GUIDE TO BUILDING WEALTH

SECTION 1            THE GOOD BUDGET
SECTION 2            THE BAD BUDGET
SECTION 3            FIXING A BAD BUDGET
SECTION 4            THE RESULTS OF PLANNING A GOOD BUDGET
SECTION 5            TWO EXCELLENT AREAS OF INVESTMENT TO BUILD WEALTH
SECTION 6            INDUSTRY-LEADING COMPANIES
SECTION 7            THE RESULTS OF INVESTING IN INDUSTRY LEADERS
SECTION 8            CONCLUSION

INTRODUCTION

Plan and create a good budget in order to spend less and invest more. This is how an average worker can accumulate a significant amount of wealth over the long-term. That is the point of this report. An average person can accumulate a significant amount of wealth by budgeting well, spending less, and investing more. In the case of this report the definition of wealth is a person's net worth, meaning their total assets minus total liabilities. It is not how much a person makes in income every year that determines whether or not he/she will become independently wealthy, it is how he/she budgets his/her income so that he/she can invest more every month of every year. Even the highest income earners have a hard time building wealth without planning their budget in order to invest more and spend less of their income every year.

A question that is often asked is what is the real purpose of sacrificing part of one's income every year in order to increase one's net worth? I will leave the answer to that question up to the reader because different people accumulate wealth for different reasons. In the case of this report the purpose of accumulating wealth is to eventually become financially independent, which means that one can then live off of the income produced by his/her wealth and not have to depend on an employer to produce his/her income. The more wealth a person accumulates through investments the more income those investments produce. For example, a $10 million investment account that produces a 10% yearly dividend produces much more income than a $100,000 investment account that produces a 10% yearly dividend. $1 million versus $10,000. The real purpose of accumulating wealth over the long-term can clearly be seen in this case, to accumulate enough wealth so that it then produces enough income to eventually give a person financial independence.

The idea for writing this report came from my own experiences with budgeting. When I first entered the full time work force I realized that I needed a way to invest at least 15% of my income every month in order to accumulate a significant amount of wealth over the long-term. So I started listing my monthly expenses every month of every year so that I could plan and create a good budget that would allow me to set aside money to invest with every month. This was how I first started accumulating wealth. After a few years of doing this I realized that in order to go one step further and compound my wealth at an even faster pace I needed to constantly find new ways to cut my expenses every month, so that I would be able to invest even more of my income. After I started doing this my wealth compounded at a much faster rate than I ever could have imagined. I realized that I had found an excellent way to build wealth and become financially independent even though I was just a regular blue collar worker with a very modest income. This revelation motivated me to share my story through this report in order to help others realize that one really can build a significant amount of wealth and become financially independent, even if one's income is modest, simply by planning and creating a good budget every month of every year in order to set aside part of one's income every month to invest and build wealth with.

I decided to keep this report focused more on creating and planning a good budget but I do include some specific types of investments in this report that are excellent investments for anyone aspiring to build his/her wealth. This report is mainly about creating and planning a good budget in order to invest more of one's income every month of every year, but the investments I do write about are excellent investments for building wealth. I will keep the subject of what to invest in with one's income after a good budget has been planned and created up to the reader though.

The main type of investment that I write about later in this report is companies that are leaders in their industries. These are very high-quality companies that have a moat around their business, have a competitive advantage over their competition, have increasing profit margins, have steady sales growth every year, and have at least a five to ten year history of increasing their dividends every year. Wal-Mart, Chevron Corporation, and Intel Corporation are 3 excellent examples. There are many other types of investments out there though that produce good cash flow and compound a person's wealth at an excellent rate of return. Rental properties are a good example. In this report I leave the decision of what to invest in mainly up to the reader though, being that this report is mainly about planning and creating a good budget in order to invest more of one's income every month.

In this report I will explain step by step how an average worker can become wealthy over the long-term. This report will break the false myth that an average worker cannot become wealthy. An average worker can become wealthy and this report will prove it.