Page 42 - November 2015

SCOTT ARNEY CEO Chicago Patrolmen's Federal Credit Union
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FINANCEBuilding 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.
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.
Some of these strategies focus on a particular form of investing, ranging from real estate to new- product development. Some advertisers promise a huge income that you can earn without ever having to leave your house. Both the internet and print media are filled with claims of endless rev- enue streams and income generating ideas.
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 owner- ship in something of appreciable value. Owning your own tooth- brush or even your own car does not count.
Some of these opportunities are legitimate, but many are not. The ones that are legitimate, however, have something in com- mon. There are really only two ways to build personal wealth, and every legitimate wealth-building opportunity includes one or both of them.
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.
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.
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 avail-
With that said, the only two ways to legitimately build wealth are through ownership and the development of passive income.
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