There are many wealth creation strategies and investment techniques available to those who are looking to create a passive income. These fall into three main categories. Running a business, investing in property and investing in the share market. Although there are many options in each of these areas, finding the right wealth creation strategy for you is not that hard.

The formula for Wealth Creation is relatively simple. In order to increase your wealth, you need to increase your wealth generating activities. Most of us start out trading our time, for money. We get paid an hourly rate for doing a certain job. The problem with this is that in order to increase your income, you usually need to increase the amount of hours you sell to your employer or clients. Which in turn reduces the amount of time you have to spend on yourself, your family and doing the things you enjoy.

In order to increase your quality of life, the only realistic strategy is to increase your income, and reduce the amount of hours you work. How do you do this you might ask? By using time tested wealth creation strategies and investment techniques to create and then increase your passive income.

Creating a Passive Income gives you more time and money to spend on Wealth Creation

Passive income is generated when you are making an income without having to work for it. For example if you own a business, that you have setup to run completely on its own, or if you own shares in a company that pays you annual dividends, or perhaps a piece of real estate that generates capital or rental returns.

All these investment techniques earn you passive income. because you are not limited by the amount of hours you can spend per day working on them. Instead of working for money, you now have money working for you. This is the true essence of any effective wealth creation strategy. Maximum return for minimum effort.

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In the begining it's a tentative situation. Your first few deals are small potatoes. To make money with no investment is not entirley accurate. Everyone has access to something. Some small amount that will be allocated for wealth building. I think back to when I was starting from scratch and at the time my cynical attitude made it painful, but looking back I remember the experience fondly.

It's challenging to make money with no investment capital but when you are starting from scratch you have nothing to lose. With your back to the wall, you can go forward confidently in the knowledge that you literally have little to lose.

Curiously, all great wealth once began from scratch. To make money with no investment capital is exactly the situation you need to be in if you want to succeed and get that first million under your belt.

You see, it's not how much you started with that counts. It's not how much you have made that counts. What matters is the system. HOW you do it. If that is based on sound principles then you will never fear poverty again.

I could make money with no investment capital if you dropped me in any free City on the planet. I guarantee you within a few months I'd be living well (providing I spoke the language).

Starting from scratch, the first thing I would do is find a market. No money, but I have my self. I can offer a service. As soon as I make a few hundred dollars saved, I would begin applying the principles of opportunity investment. I would trade up and up until I had borrowing capacity.

I would use the leverage that borrowing allows me to manufacture obscene compounding returns in real estate and large ticket items like used trucks and yachts. I would work until I was comfortable, then start spending on myself.

You are in a better situation than my scenario. You have friends, contacts, and knowledge of your town. You have experiences and intimate perceptions of the existing markets in your home town. All you need is the knowledge to make it happen.

To make money from scratch with no investment capital is easy. Don't be fooled into thinking your situation is hopeless. You need knowledge, tools, and skills. It's time you took a real shot at your first million, believe me the second and third will be easy.

"The pain of discipline is less then the pain of regret" –
Martin Thomas

Copyright2005 Opportunity Investor.com

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Jack Reynolds' was a broke Insurance salesman only 2 years ago, today he owns assets valued at several million dollars. What did Jack do in 24 short months? You can read about Jack's remarkable and rapid transformation and download Hayden's famous book "The Million Dollar Mentor" by clicking here

Andrew Newberry is a distant family friend that knew about my business acumen. He knew how I had been in his position only 24 months previously and had heard about the new life I was leading with the wealth I had generated. I could hear the earnest desperation in his voice, when he asked me "how'd you do it Jack"? His question was open and sincere. In my eye's he was at a point where there was only one direction for his life to go…up.

Andrew needed to make money fast. His family were in danger of losing the roof over their heads and although Andrew worked a fulltime job, there were difficulties that created this current crisis.

He couldn't understand how I had done so much considering my humble beginings, while he had worked at his current job for over 10 years and was saddled with the difficulties he was currently experiencing. He told me he had no money to invest or anything like that, but could I advise him on what if anything was possible.

This was my response to him.

You see, what he was asking me specifically was, "how do I make money with little or no investment." My mind ignored his emotional pain and focused on his reality.

Talking about Real Estate investment or anything that needed a capital injection was futile for Andrew, he needed to hear something different. This is what I told him to do, step by step. I told him that if he followed these two steps, he would have $100,000 within 12 months. He did it in 6.

Step one, get a little money.

Not much needed, a few hundred dollars would do, but he has to find something as a seed capital account. I gave him several ideas based on opportunity-investment that seemed too obvious to him and he fought me on it until he made it work. It took some doing to convert him, but he finally gave in to creating value from objects that he currently owns, that he doesn't want or need. More detail about this can be uncovered if you follow my link below.

Step two, Go Shopping

I explained to Andrew the mechanism behind my success. Compounding, intrinsic value, leverage, rapid capital gains, pyramiding profits. I then asked him to compound the money he made ($1000 dollars) by 30% 19 times. In other words, I told him to find 19 investment-objects that were for sale that he could buy, that had at least 30% or more spare intrinsic value.

Intrinsic value is everywhere. Whether you are buying New York sky scrapers of marble pool tables or Bertram boats, every market has a percentage of sellers offering their goods at well below market value.

Andrew started with old cars because he was a mechanic and now he had a game plan he was going to compound his money with his existing skill set. He traded up and up until he had $12,000 in six weeks. His first purchase was a car in cute condition, but unwanted by the owner because they had just bought a better car. He got it for a small amount and cleaned it well and sold it quickly for a good 300% profit. He went from there.

Get your calculator out and see how he did it, how he evolved his money without a hitch. Start with 1000 then multiply by "1.3" which is the same as 30% Don't press equals, just hit "1.3" and multiply symbol again. Do that 19 times.

When Andrew sold his last auto deal, he was ready to get involved in Real Estate. With $12,000 it wasn't much but it was enough to start applying the same principles with Real Estate. This is where his compounding really escalated.

It escalated, because now he was using leverage….borrowed money. He called me on the day he was ready to start compounding with Real Estate with another problem. As I advised him "get into Real Estate Andrew as quickly as you can, around the $10,000 mark its time to get into that game"

He had a problem. The houses in his area were dear, he couldn't see how having $12,000 was enough to get involved.

I advised him that he should forget about houses until he had at least $40,000 He should focus on raw land. Raw blocks are cheap and easily re-zoned into a higher purpose. With just a small investment at the local town planning department he could re-zone a residential into a commercial or the other way around where appropriate. Its called a "soft" or "paper" rennovation. No painting, no work, just a few simple forms and a fee to pay.

Creating a new use is just one way to add value to raw land, there are many others. Andrew researched and discovered them all. He stuck with land after all was said and done. He discovered buying a large block and subdividing it was very profitable. The second deal he did, he bought a block of over an acre, surrounded by established homes for $300,000 (with a bank loan) It was a corner block and he split it into three handsome sized blocks, tailored to the upper market. The first two blocks paid out his loan and put profits in his pocket, the last block he used as collateral for another bank loan where he built his own beautiful mansion on.

He sold it for a final profit of $354,000

That was about 6 months after our little chat on that cold evening.

To your health and rapid success.

Jack Reynolds was a broke Insurance salesman only 2 years ago, today he owns assets valued at several million dollars. What did he do in 24 short months? You can read about Jack's remarkable and rapid transformation and download Hayden's famous book "The Million Dollar Mentor" by clicking here.