Principle of wealth building 1 of 5

The first principle of wealth building is there are only three paths to choose from in this journey... 

1. Paper assets (stocks, bonds, etc.)
2. Investment real estate (not your home) 
3. Owning your own business 

Your wealth plan should include at least two of the three paths and occasionally will include all three (depending on personal circumstances). This increases safety and certainty in the outcome. 

Surprisingly, paper assets are rarely a wealth building vehicle despite the avalanche of media propaganda leading you to believe otherwise. They are typically a parking place for preserving and growing the purchasing power of wealth earned elsewhere. 

The reason this is true is because of strict mathematical limitations to paper asset growth. It is the only asset class out of the three that is governed by these limitations. 

(Side note: Did you notice the irony that paper assets are not really a wealth building vehicle when that is the only thing included in a traditional adviser's financial plan? That may not make sense until you realize that financial advisers are in the business of helping you manage the wealth you already created. They are not in the business of helping you build wealth in the first place.) 

In other words, there are really two steps to the wealth process (but most people only think in terms of one). The first step is to create wealth and the second step is preserve and grow that wealth through investing. 

So how do most people create wealth in the first place? 

Statistically, the answer is real estate and owning your own business. Why this is true will be explained in wealth plan principles 3 and 4 over the next few weeks. These reasons are an important part of your plan. 

A small proportion of the population can save their way to wealth by applying frugality and deferring earned income (wealth earned elsewhere) to wealth vehicles 1 & 2 (real estate and paper assets). 

However, saving your way to wealth is less common because it ignores wealth plan principles 3 & 4 and because it requires discipline, persistence and starting early enough in life to allow compound growth to work its magic. Yes, it is a workable strategy, but not many people fit this profile. 

Your homework from this lesson is to start thinking about which of the three paths to wealth you would like to include in your wealth plan. 

In your next lesson I will explain how to match the various paths to wealth with your unique life situation to begin formulating your personalised wealth plan. This is critically important to actually reaching your goal. 

There are many ways to achieve wealth, but only one path that will uniquely fit you. I will explain how that works in your next lesson. 

Finally, if you're liking this series, consider taking it to the next level with my course on designing your wealth plan. In Module 2 - Lesson 4 of that course I show you exactly how mathematical limitations to asset growth get integrated into your wealth plan design, and I provide the necessary resources showing you realistic rates of growth for each of the assets in your plan. Also, in Module 4 of the course, I explain the principles underlying each of the 3 asset classes so that you know how to properly utilize each asset class in your wealth plan.  

Okay, see you in a few days with your next lesson from this course... which will be wealth plan principle #2 of 5. 

See you then...

Ritesh.Sheth CWM^®

CHARTERED WEALTH MANAGER

              Helping you invest better...  

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Disclaimer:This blog is addressed to and intended for the investors of Ritesh Sheth & Tejas Consultancy only. You are advised to contact Ritesh Sheth & Tejas Consultancy to clarify any issue that you may have with regards to any information contained in this emailer. The views are personal. Ritesh Sheth & Family or Tejas Consultancy does not guarantee the accuracy, adequacy or completeness of any information in this blog and is not responsible for any errors or omissions or for results obtained from the use of such information. Investopedia definitions are used for educational purpose. Ritesh Sheth & Family or Tejas Consultancy does not have any liability to any person on account of the use of information provided herein and the said information is provided on a best effort basis only for educating investor. In case of investments in any of our schemes, please read the offer documents carefully before investing. 

20 Simple Ways To Relax And Unwind When Life Has Been Rough

Do you occasionally feel like a cartoon character with a finger in an electrical socket? Stress is such an integral part of our lives nowadays that we seldom realise it isn’t something we’d classify as normal. Not all stress is abnormal, though. There is such a thing as good stress, which keeps us going and motivates us to complete tasks on time. But bad stress or chronic stress is what you should be wary of. This is the kind of stress that can cause physical, mental, and emotional discomfort, and make you feel all kinds of wrong.

The time to relax is when you don’t have time for it. Now is the time to manage the good, the bad, and the ugly faces of stress. Here are a few ways to help you do just that.

1. Identify your stressors

© fitness-library Identify your stressors

Image credit: fitness-library

We are often so lost in our self-acclaimed stressful lives, that we never really sit back and see what EXACTLY is stressing us out. Sure, everyone says that they have stress in their life…but has anyone ever listed down concrete things/situations that stress them out? Do exactly that. Sit down and ask yourself what exactly is making you so stressed; and you’ll often find the solution right here.

2. Craft

© familyholiday Craft

Image credit: familyholiday

Adopting a new hobby; something that gives you the chance to craft or create something is always pleasurable since it gives you the feeling of being productive. Also, repetitive motions - like the fine motor skills used to knit or make jewellery -- can soothe a stressful mind and help you calm down, since it makes you mindful of the present. Speaking of which….

3. Being Mindful

© coe Being Mindful

Image credit: coe

It cannot be stressed enough, the importance of being mindful. We’re always plugged in on two hundred devices at once, and are under so much pressure to reply to every tweet, email and ping that comes our way. When was the last time you actually tasted the food you ate? Are you aware of how many sips it takes you to finish a glass of water? If not, it’s because you are too busy being staring at a screen. Most of our jobs today involve that, anyway, so it’s best to avoid the screen when performing normal everyday tasks and instead be mindful of what you’re doing.

4. Do Something Pleasurable

© clearcalmspace Do Something Pleasurable

Image credit: clearcalmspace

Anhedonia is something we know all too well. It’s when the things you used to enjoy now leave you cold, as if there is a barrier between what you enjoy doing; few things seem rewarding any more. You can counteract this feeling by taking baby steps towards the things you used to enjoy. Some ideas include

(a) Be kind to your body: take a shower, lather on your favourite lotion and realise that you smell amazing, you feel clean. Drink lots of water, have lots of cold fruits and drink fresh juice.

(b) Other activities that seem mundane: meet up with a friend you haven’t contacted in a while, maybe go out with them to grab lunch; bake a cake and share it with your neighbours or colleagues.

Feel free to think up your own ideas; anything that makes you feel accomplished and pleased with yourself is a great way to begin..

5. Turn To Your Memories

© thepetwiki Turn To Your Memories

Image credit: thepetwiki

This one has personally worked for me very well. When you feel overwhelmed by all the criteria you feel the need to fulfil, or the constant need to be perfect at every task you ever attempt, and if you fail, which you inevitably will, you will feel the stress of being a grown up, and the stress that comes with taking all the responsibilities that you have WILLINGLY taken up. What you should do then, is turn to all the memories that are your safe haven. A memorable trip you took with friends, or the time that you faked a sickness to get out of going to school and actually succeeded (we never did), or even the time you got praise for something you successfully completed. The present will seem less intimidating, and you’ll realise that it’s okay to be stuck sometimes. With that acceptance comes peace of mind.

6. Create a Relaxation Room

© timesofmalta Create a Relaxation Room

Image credit: timesofmalta

It doesn't have to be a "room" per se. It can be a space in your bedroom, or in a quaint coffee shop down the street, but the key is having an area solely devoted to relaxing. Where you can sit and actually take a breath without having a hundred and one things trying to get your attention. This should be your device-free zone, where all you can carry is probably a book or magazine or just your imagination. The idea is to give you a place to decompress with very little stimulus.

7. Buy A Plant

© decor10blog Buy A Plant

Image credit: decor10blog

This is the pet-equivalent for those who’re always on the go and working non-stop. Having a plant is seemingly a very unimportant thing to do, but they’re more than just indoor air purifiers. The colour green has a positive effect on the brain and simply having a plant around will make you feel much more connected with nature. Also, mindfully done, the act of watering a plant can be very relaxing and rewarding.

8. Be Grateful

© fastcompany Be Grateful

Image credit: fastcompany

Wanting to be your best is normal, especially in teenagers. However, we seldom ever stop and feel satisfied with who or where we are. Of course, feeling way too satisfied would mean we would stop working to be better; but the constant pressure to be better than we already are is ruining a lot of us. We’re never happy with the job we have or the marks we got. But there’s absolute joy that comes out of waking up early in the morning and being happy that you managed it. Be happy for once, even for a little while, because it will calm those fidgety nerves.

9. Sleep Is Your Kryptonite

© newsday Sleep Is Your Kryptonite

Image credit: newsday

Sleep is magical, really. When all your emotions are going haywire, and you’re feeling all the negative emotions it’s possible for you to feel, sleep is the way to go. When you wake up after an hour or even five, you’ll feel better. And if you miss out on your work, or on life in general, tell yourself that your mental health is important. As we said before, sometimes, it’s okay not to be in control.

10. Change your clothes

© cosmopolitan Change your clothes

Image credit: cosmopolitan

As soon as you get home from a stressful day at work or school, change your clothes. You’re doing yourself a huge favour, because you’re telling yourself that you’re now out and AWAY from the stressful environment, and this will automatically calm your nerves. Don't be lazy about this; it takes practically no time!

11. Go To A Bookstore

© chimesinthelibrary Go To A Bookstore

Image credit: chimesinthelibrary

No, you don’t necessarily have to be a bookworm or even an avid reader to do that. The idea is to go somewhere public but private at the same time, and feel lost. And there’s something for everyone in a bookstore, so why not? Being surrounded by something other than electric devices is a strangely delightful feeling.

12. Indulge in Guilty Pleasures

© ladolcevitablog Indulge in Guilty Pleasures

Image credit: ladolcevitablog

Once in a while, it’s alright to do this. Watch 'The Notebook' three times in a row and cry your eyes out, watch 'Keeping Up With The Kardashians' and laugh at the things you wouldn’t get to experience very often. Guilty pleasures exist to make you feel guilty for indulging in them; but we’d choose guilt over debilitating stress any day!

13. Do Nothing

© babble Do Nothing

Image credit: babble

We all know what Winnie the Pooh said – don’t underestimate the value of doing nothing! Although this seems like an everyday thing, we’re always doing something, either physically or mentally. It’s important to know how beautiful it is to do nothing, and rest afterwards. Have an emergency exit for every day; you never know when it gets too much to handle.

14. Will This Matter When I’m Dead?

© talkingovercoffee Will This Matter When I’m Dead?

Image credit: talkingovercoffee

Admittedly, this sounds more than a bit morbid, but visiting a graveyard -- whether literally or figuratively -- can help you reframe a stressful situation. No, seriously. This is so important and its funny that, although it seems ridiculous, it actually works! There’s just a slight possibility of going overboard and literally becoming stress-free, but if that’s what you’re aiming for, then seriously, ask yourself this question. And give yourself the answer.

15. The Internet Is A Friend

© houseofanubis The Internet Is A Friend

Image credit: houseofanubis

We all know the important of plugging out of all forms of connectivity to feel better, but for those of us who have desk jobs, we can’t really afford to look away from our screens every 5 minutes. What’s the solution? A few of these websites that will turn your mood around!

Calm Make everything okay

Rainy Mood

Nicest place on the internet

Do Nothing

Noisli

The quiet place

Soundrown

Automatic

Flattery

Look at

something

Disgruntle me

16. Meet Your Happy Person

© nkayesel Meet Your Happy Person

Image credit: nkayesel

Everyone should have this one person, their chill-pill, who can tell them to calm down and it just magically happens. People who light up after seeing you, or always have some comforting things to say are extremely important people who need to stay in your life, unlike the walking, talking black holes that suck the life out of you.

17. Water

© Alex Deckard Water

Image credit: Alex Deckard

Try the Japanese Water Therapy (Drink 4 glasses of water immediately upon waking up in the morning); or you can be a bit more ridiculous and drink water upside down. That helps relieve stress and avoid hiccups. Swimming or any other water activity helps in lowering your stress levels. Being 70% water has its benefits, people.

18. Blow Up A Balloon

© bakery-square Blow Up A Balloon

Image credit: bakery-square

No one can be stressed and grumpy while blowing a balloon. Try it. There’s just something humorous about having a sack of air lying around. Consequently, you can just try to balance a balloon, and not let it touch the ground. Hey, it’s a game for kids, but you can put two and two together and realise why kids always have a smile plastered on their face.

19. Distance Yourself From Triggers

© meangirlgifs Distance Yourself From Triggers

Image credit: meangirlgifs

Being self-absorbed in your own world is a fantastic way to stress yourself out over things which are plain irrelevant. Simply stop being around thoughts or places or even people who make you anxious. Mini-vacations or 5-minute vacays are extremely helpful for those who cannot take the time out to personally work on individual stressors.

20. Find What Works For You

© picture-machine Find What Works For You

Image credit: picture-machine

Finally, don’t just take in the tips you read everywhere. Your body and mind are unique to you. What works for others isn’t guaranteed to work for you, but the road to self-discovery requires experimentation. These are all very relaxing but maybe your kind of de-stressing involves pushing walls and tiring yourself out physically. As long as it's healthy and it works, it's good enough for you.

What do you do when you're having a tough time? Tell us some of your de-stressing tricks in the comments below.