Building wealth is an evergreen aspiration that has captivated generations and it still does! Many wars have been fought only because emperors couldnÔÇÖt get enough of building their wealth and the same sentiment still lies somewhere deep within each of us. With the complex financial structures of today, is it possible to build wealth in a simple manner?
While nobody has a magic pill for it, here are some simple steps which can assist you in your journey to amassing wealth.
Making enough money
This is an obvious step, you cannot build your wealth without making money, but the key word here is ÔÇ£enoughÔÇØ, which means anything above your normal expenses can be used as means to build wealth.
Saving money is crucial to build wealth. If you have a steady source of income, make sure you save a realistic percentage of that value every month. Money saved is money earned.
Leveraging the power of compound Interest
Have you heard of this term before? Probably you have. All those years back during your school days, this simple concept might have lost you some marks, but itÔÇÖs about to make you a whole lot of money.
Compound Interest is a powerful tool to help you make money, especially if you begin investing from a young age. The money saved now has a tremendous future value. So make sure you start saving and investing your money early.
Investing money appropriately
Financial institutions today have products for every personÔÇÖs requirement. If your risk appetite is high you can invest in stocks, mutual funds, options and derivatives which are risky but will fetch you a higher return when invested judiciously. There are different levels of risks involved in these instruments and we advice spreading your risk across diverse investments.
For people with lower risk appetite there are products such as national bond, fixed deposits and saving instruments which are very secure and will take you on a predictable path of building wealth. Many saving certificates have exiting offers like monthly and quarterly cash rewards on their savings through prize draws, in addition to guaranteed interest which is paid on a regular basis.
Health is wealth
We have heard this adage before and will continue hearing it. We live in a dynamic world where life is fast paced, there is no point building your wealth if you cannot enjoy it in the future. So itÔÇÖs important to be fit and healthy.
Wealth building process does not happen overnight, the power of compound interest and investing money appropriately mentioned above will only be effective if you continue doing it over time, any abruption in this will derail your journey.