5 trends that will make you rich: ideas on how to reap large gains.

Accumulating wealth doesn't always have to be a mystery. Many times, following proven strategies or having the commitment and discipline to follow investment trends can produce results over time. The following are five trends to a wealthier future:

1 Buy a home

Buying a home is the foundation of wealth building. In 2002, the U.S. Census Bureau reported that almost 42% of a person's net worth comes from the equity in his or her home. That's why our No.1 Declaration of Financial Empowerment principle: to use homeownership to build wealth is the most important With housing prices soaring, it's even more important to purchase a home now. The key is to purchase a home you can afford. If your mortgage payment works out to the same as the rent you are paying, then you should have no trouble making your monthly payments.

Homeowners benefit from their purchase because they are paying themselves first. Each mortgage payment lowers the principal, increasing the home's equity. Homeowners also benefit from tax breaks on mortgage interest and repairs made to the home.

2 Start a home-based business or consultancy

Since job security is Rot guaranteed in the current economy, it makes sense to establish a business. Another key to building wealth is establishing additional streams of income, and working as a consultant or freelancer can do just that. It doesn't have to be a full-time commitment. Maybe you have an expertise and can earn additional money over time. Just a few thousand dollars in extra income invested over the long haul can turn into hundreds of thousands of dollars.

Once you've established your small business, you could be eligible for tax breaks such as the home office deduction or deductions for purchasing business equipment. With proper consultation from an accountant, it may make sense for you to establish a SEP-IRA account, which will allow you to save additional income tax-deferred at higher levels than an ordinary IRA (up to 25% of an employee's compensation, providing the contribution does not exceed $40,000).

3 Contribute to an IRA

With an ailing Social Security program and fears that corporations such as United Airlines have underfunded pensions, opening an IRA account is a necessity for most investors. It is particularly important to open one if you have a job that does not provide a pension upon retirement.

"An IRA gives you the ability to grow your investments tax-deferred, and this saves you money because taxes are the biggest destroyer of wealth in America," says David Hinson, principal of the Wealth Management Network in New York. Since most people are expected to live 20 years or more beyond 65, a well-managed IRA with diversified investments can provide the additional money you'll need for retirement outside of a 401(k) account or other company-sponsored retirement plan. It can also provide a potential tax break for each year you make a contribution.

4 Invest in overseas markets

The past five years of unpredictability in the U.S. stock markets have highlighted the importance of having some exposure to overseas investments. China's emergence on the world stage and trends, such as the outsourcing of U.S. jobs to foreign countries, are indicators that overseas markets are expanding. It's important to give yourself an opportunity to build wealth by tapping into that growth.

As part of last October's BLACK ENTERPRISE investment roundtable, Ron Holt, managing director of research at Hansberger Global Investors, explained, "It's important to use a diversified approach to international investing. You should consider using mutual funds or at least a professional money manager as a way to help you manage risks. Look for a strategy that gives you access to a range of markets outside of the U.S. I would not exclude emerging markets." Holt says investors should consider allocating 5% to 25% of their portfolio to international investments.

5 Diversify with Exchange Traded Funds 

Exchange Traded Funds (and iShares) are actually index funds that trade like individual stocks. ETFs give you exposure to an entire stock or bond portfolio as a single security, providing built-in diversity to your investments and lower overall risk than individual stocks. They carry lower fees than mutual funds, although you do pay a commission fee when you buy. "It is a smart, low-cost way to get exposure to asset classes on your own terms," says Dale Bryant, portfolio manager of the Bryant Group in New York

ETFs are available in a variety of asset classes: bonds, international stocks, individual countries, industry sectors, and commodities. Investing through ETFs eliminates the need to become an expert in all of these areas. For example, if you want to invest in gold as a commodity, but don't understand how it is traded in the commodities market, you can gain exposure to that investment by purchasing an ETF. Such diversification into non equity ETFs would provide a hedge in the event that the U.S. market was to hit hard times.