7 wealth creation tips
Regardless of the type of job you are currently working, 7 wealth creation tips will help your process. Your current job is a simple way of making money flow into your account.
Start creating wealth ( only spend $9 out of every $10)
The little amount you earn is where you start to build a fortune. Save 1/10 of the money you earn each month. Only use 90% of all that you earn. Develop the ability to delay gratification by saving a 10th of all you earn. What each of us calls our necessary expenses will always grow to equal our income unless we oppose it.
For every $10 that goes into your account put aside 1$ that you should not spend. This is possible when you understand that you can not gratify every desire you have. Even if you spend 100% of your income you will have unfulfilled desires.
This first step is the most important because this is the foundation on which you will build. Learn not to spend only 90% of your income and put aside 10% to start creating your wealth. You can increase by 10% if you can.
Budget your expenses
Budget your expenses so you can pay for your necessities but do not touch the 10% is creating your wealth. A budget sounds like locking yourself into a prison that does not allow you to enjoy your money. Although it takes self-discipline to work with your budget, it will set you free and show you the leaks in your account. A budget will help you create wealth for yourself and your family.
A budget is an estimate of income and expenditure for a set period. Write down everything you spend your money on. Select what is necessary and others that are possible in the 90% of your income.
Only spend money on necessary expenses and work closely with your budget. Study carefully your lifestyle habits, herein you may find some expenses that can be reduced or eliminated. Keep adjusting your budget so it can help you.
Grow your wealth (Multiply your 10%)
After putting away the 10% of your earnings you have taken the first step to creating wealth. Make your 10% work hard for you. Having money saved in an account is great to have but will not grow on its own.
First, do research and get advice only from people who are qualified to give financial advice. This will help you avoid losing your money in bad investments.
The aim is to put each $/R to work that it may reproduce its kind and help bring you an income. Invest your money in income-generating assets. If you have enough to buy a property to rent it out. The property will end up paying for itself and generating income. Only buy at a reasonable price, as advised by Jim Rohn.
Guard your wealth against Loss
The first principle of investment is security. Before you invest your money in any endeavour make sure you understand all the risks involved. do not be overconfident of your knowledge. Consult with people who are experienced in handling money for profit.
Invest only where your principal is safe. Buy assets and not liabilities.
Own your home
Homeownership gives you and your family a sense of stability and security. It is also a great investment. Real estate moves in cycles, sometimes up, sometimes down, yet over the years, real estate has consistently appreciated.
Make your home a profitable investment. If you can use some of the 90% in a way that can be an investment without affecting your wellbeing. You will speed up the process to grow your wealth.
If you can buy a piece of land and build a house you can pay back the loan using the same money you were paying your landlord.
Ensure your future income
Make preparations for when you are no longer young and when you can no longer provide for your family. Provide in advance for your growing age and family. A person in the process of creating wealth should think about the future and make plans that will stand the test of time. You can buy Houses and land for this purpose because if wisely chosen their value will be permanent.
You may invest your money in organisations that will take your money, use it and pay it back with interest. Reliable institutions like banks and other FSP’s have product investment products.
Increase your ability to earn
You can have more by simply becoming more. Cultivate your power. To study and become wiser. To become more skilful. You will develop confidence in yourself to achieve your goals. When you become more skilled, informed and competent. You will increase your ability to earn and increase in value.
Become a person of value. The only way it gets better for you is when you get better.
These points were inspired by George S Clason – the Reachest man in Babylon.
Related: 5 Daily Habits to Change Your Life