Saturday, 30 December 2017

How to Become Wealthy: 5 Ways to Create Wealth on Your Current Income

Is there anyone who does not desire financial freedom? All of us does but the road to getting rich is paved with challenges – persistence, focus, changing old habits, mindset change, discipline, hard work, etc. Without these, everybody would have been wealthy.
To create wealth or build wealth is not a day’s job. Somebody said: Rome is not built in a day, it’s brick by brick. And so is wealth creation!
Let me therefore share with you 5 ways to create wealth even on your, below average, current income.

(1)   Save: In order to get rich, you must form the habit of saving part of whatever amount of money that you get. Even though you are unemployed, consistently save part of what you are given. The rule of thumb is that you should put away, at least, 10% of your income (income sources – salary, donations, contributions, etc). However, you can increase the percentage savings in order to increase your chances to create wealth and or reduce the time to build wealth.

(2)   Increase Your Income: It’s common sense that the more money you earn, the more you can save and invest in order to build or create wealth and become rich.
As an employee, deliberately make it your goal to be an expert or a top-performer at what you do so as to pave a way for yourself to move up your career ladder. Somebody said: If you do not over-qualify where you are now, you cannot be promoted.
At the same time, you can engage in a side business that can enable you earn passive or residual incomes different from your regular salaries.
The result of all of these is to improve your personal income which will open the door to creating wealth.

(3)   Spend Less Than Your Income: This is a key financial attitude to creating wealth. Unfortunately, most people eat from hand to mouth. Their income equals their expense. For others, their expense is even greater than their income.
But there’s a solution – spending less than you earn - to this bad financial habit. How? Cut off impulse buying; always draw up your budget; differentiate your needs from your wants; do not always have large cash at your disposal; minimize use of credit cards; etc.

(4)   Draw Debt Plan: Debt is one of the show-stoppers when it comes to creating wealth. Make a list of those debts that are hindering you from saving money. It is important that you start with the one with highest interest rates to the least. Begin now with number one and pay as much as possible irrespective of the minimum payments required on the debt with the aim to liquidating all the debts at the shortest possible time.

(5)   Create Investment Account: It is into this account that you dump ALL your savings towards your wealth creation or wealth building.
When the money gets to a certain amount that can be invested, invest it. There are various investment instruments such as real estate; bonds; stocks; mutual funds; etc. Do not invest blindly, invest wisely!
As your investments begin to yield dividends, do not forget to re-invest your ROIs (return on investment). This brings about growth in your investment income leading to acceleration of the growth of your income.
Also, when you have a windfall (good amount of unexpected money), the wisest thing to do is to invest it. It has a way of quickening your steps towards getting rich.

A lot more people a creating wealth following the above tips. But a vast majority of the world population is still finding it so difficult paying the price to becoming wealthy.

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