Wealth Creation for Beginners

 

The Keys to Wealth Creation

1. Live on less than you earn
2. Seek advice from those who are competent through their own experience to give it
3. Make your money work for you

A good rule of thumb for wealth creation is to remember a simple saying: “a part of all I earn is mine to keep“.  What this means is that you should be saving a part of anything you earn, you can make this any amount you like, but ideally it should be a minimum of 10%.  I know people will argue that this is impossible because they don’t earn enough, or their rent is too high or they have other debts, these are really just excuses that prevent you from achieving your goals.

The hard part for many is that they actually have to keep this money forever, that's right, you can't spend it.  In addition to this, you can't spend the money that your savings makes for you either.  So when do you get to spend it? Well that is the tricky part of wealth creation  Because surely you can spend it eventually?  Well, the good news is that you can, but you have to wait for your savings to build to a point where it is producing more moey than you can spend. The concept isn't hard, but following through can be difficult for a lot of people.

Saving or Creating Wealth?

These are not the same thing.  Saving is what you do for something you want, creating wealth is what you do with the money you keep and continue to do without spending it.  Savings can be kept in an account that you can get to when you need it, the money you keep should go into managed funds, bonds or other investments where you can’t access it.  What this means is that you need both money that is working for you, and money for the things you want now.  The golden rule is to keep them seperate, you don’t want to mix them up now do you?

Wealth creation is about more than making money, it is also about self control and patience.  These are skills you need to develop throughout life and without practice, you won’t be any good at them.  The goal should be creating the lifestyle you desire.  If you work towards your goals it will happen, but it just doesn't happen straight away!

Making Money

Wealth creation will not happen overnight, but it can happen quite quickly.  As soon as you start keeping your money you will have more.  If this money is invested, it begins working for you right away. That’s pretty fast, but if you want it to happen faster, keep more!  If you really want to get a roll on, find ways to make your money work harder.  Be sure to follow key number 2 and research well, find people to help and understand that if something looks too good to be true, it probably is.  Learn patience and self control, it is a lot nicer knowing that something is yours to keep when you have worked, waited and saved for it.