By James Oh
In my previous article, I have given you the true meaning and the methods of creating wealth.
In this article, I am going to lay down some of the useful steps you can adopt to create your wealth so that you can live well.
1. SPEND LESS THAN YOU EARN.
This is the most crucial step to take so as to create wealth. However, this is more often than not being overlooked. People tend to have a misconception of saving and tend to believe that it is a matter of reducing their standard of living. The truth is that it can make a huge difference in their wealth creation. Just imagine every dollar you saved will be invested so as to create more wealth. If you choose to spend the money, both the money and its future benefits will be wasted.
2. QUIT BUYING CRAP
To avoid buying craps, you should always make sure that the items you buy are necessities and not luxuries. You should do away those want lists that are not essential. They are not only to give you a better feeling, but worse still may be short live in nature. Later on, you may need to find a place to store them. Worse, you may have to waste your precious time to tidy up your stores, thus leaving you little or no time to create your wealth. Do not forget that time is money. Here, you must be well aware that most of the purchases are made based on emotion rather rationale.
3. FORGET ABOUT TRYING TO IMPRESS PEOPLE
You should not be bothered how other people view the way you spent your money. In reality, most of us buy things just to impress our peers or egos. Do not get me wrong, you may spend on those luxury items that can generate more residual income than the depreciated value of your assets.
4. MAKE SAVING A TOP PRIORITY
Life is the sum of choices. Therefore, it is crucial for you to set the priority right in accordance to your objectives. As such, to create wealth, you must set saving as your top priority. It should not be construed as cutting back. It is wise for you to spend more on higher quality products, which will cost less in the long run.
Alternatively, you may use it for creating a long term wealth.
5. WEALTH BUILDING ASSETS
To hedge your wealth against inflation, you need to invest the excess of your saving money in wealth-building assets that give you a return higher than the inflation rate. No doubts, the economy today is more inclined to the investors or entrepreneurs than savers. So, to take these advantages to its fullest, you need to align your strategies toward this inclination.
However, you need to aware of its risks as well. As such, you need to equip yourself appropriately and adequately with skills and know-how so as to ensure that you create the highest possible yields for your wealth-building assets.
6. KEEP IT SIMPLE
Never under estimate the power of simplicity. This can be the most sophisticated thing we do with our money. This is because we need to aware that complication is the friend of con artists/ crooks. You should not let your greed and desire for high returns make you confuse and blur. Be aware and do not get involve in those complicated loans or investment deals that could rob you blindly. You need to take precautions to safeguard this measure.
Be careful that you are not enticed by those who claim that your investments are fully guaranteed or they are secured collateral or insurance? They make everything sound sophisticated, so as to fool otherwise reasonable people. Be cautious not to be trapped by these scams. Be wary of your greed.
7. SWEAT THE SMALL STUFF
As warned by Ben Franklin “Beware of little expenses; a small leak will sink a great ship.”
To hasten your dream of creating more wealth, you have to sweat the small stuff. For those of you who are familiar with the compound interest calculation, you will know what I am talking about. Just check the annuity table and you be amazed how fast you can become a millionaire when you save a dollar daily at a fixed interest rate.
I hope both of the articles will not only give you a clear framework but also practical tips to create your wealth.
Wishing you every success. Stay tuned and look forward to seeing you again.