4 Time Tested Ways to Build Wealth

There is a multitude of conflicting opinions out there when it comes to the subject of wealth accumulation and wealth building. While some people tend to think of it as an easy process, others feel it is too hard even to begin trying. Some even take a moralistic stand and shun the idea of wealth accumulation altogether. The fact remains that after everything is said and done, less than 1% of the world population is wealthy. Deep down, everybody wants to be financially independent and sustain a lifestyle without ever having to work again. Some pin their hopes on a high-paying job, a stroke of luck, or the stock market, while others even count on pension funds. Wealth accumulation is more of a science than just trial and error. There are golden rules to wealth accumulation derived from years of general patterns and tendencies, that, if applied correctly, can make you wealthy beyond your wildest dreams.

1.Having Passive Income Sources

Most people go wrong right at the outset as they confuse the accumulation of material things with wealth. They fail to realise that the ability to free up time and not have to spend 8-10 hours working every day is the accurate measure of wealth. The only way you can achieve this is by creating sources of income which generate wealth by themselves without involving any work. The answer to creating passive income lies in asset investment. Instead of tossing your hard-earned money into purchasing furniture, vehicles, clothes, holiday homes and paying off credit card debts, invest in income-generating assets like real estate, shares, royalty, franchises and businesses.

2.Educating yourself Financially to take Informed Decisions

When it comes to finances, most people tend to favour the easy route and get drawn in by get-rich-quick schemes. They blindly trust ‘experts’, don’t strategise, make emotional decisions or start believing that making more money is difficult. You can change such a state of affairs by becoming financially literate. This involves educating yourself and staying up-to-date with financial matters. Start reading autobiographies of successful people, attend seminars and surround yourself with mentors. Rich people know precisely where their money is, can manage risk as well as growth, and thus outperform the stock market and increase the value of their assets.

3.Setting Objectives and Plans

According to bestselling author, John Kehoe, ‘Weak and scattered thoughts are weak and scattered forces. Strong and concentrated thoughts are strong and concentrated forces.’ Most people aren’t able to achieve their financial aspirations due to poor planning and goal-setting. They invest time, effort, and money without a structured plan only to find themselves feeling exhausted and unmotivated when the expected results don’t show. The right approach is to take a piece of paper and write down the amount of money that you want, how you plan to raise it, and how you intend to utilise the money you earn. Remember, the more objective and clear focused you are about your approach, the easier it is to follow through on your plans.

4.Managing Surplus Income Efficiently

Creating wealth is not about how much you earn; it’s about how you manage your surplus income or cash. A surplus is the amount of money you have available for investment over and above your expenses. A shortfall will exist if there isn’t enough income. You can increase cash flow by eliminating unnecessary spending and increasing income. Positive cash flow can help pay off debt and purchase assets, which, in turn, increases passive income as it is  impossible to grow wealth without a surplus.

Final Words

This blogpost is an objective look at wealth management even though it might just be cursory. Seek professional help and advice to gain more insight into various issues related to finance. You can take up small short term loans to invest in and boost your business and accomplish all your objectives. KreditBee gives you easy access to the money you may need to establish or grow your business. The documentation is hassle-free and the loan amount is credited directly into your bank account. Download our online loan app or call 080-44292200. You can also email us at [email protected].