Steps to wealth creation

All of us want to have wealth, but we find it very difficult to create wealth. It’s not that difficult if you just follow some rules. First of all, when we speak of wealth, we should know what it means. Wealth is the amount of assets in surplus. What we earn is not wealth, but the amount we set aside, is wealth. This wealth might be small when we start, but as we invest it properly, it starts growing. Whatever we intend doing with this wealth, it should grow big enough to make a difference. Now that we know what wealth is, let us try creating an asset out of it, so that it grows. We are no magicians to know which class of asset would give us good returns, in such a situation it is best to spread our wealth over all class of assets. This way there will be growth. You could start with equity, gold or real estate and then build them. Ensure that all your money is not in only one asset class.

As I said earlier, amount kept aside is wealth, but if you do not keep anything aside, wealth will never be created. So make it a point to keep aside some amount. Wealth creation takes time, so do not expect the money to grow overnight. Give it time, longer you keep the money invested, the faster it will grow. Now that we know we have to diversify, and be invested for a long time, the next step would be to take care of contingencies. Keep money aside for contingencies and also get yourself insured for health and home insurance. So that in case of an contingency, your wealth is not touched. Last but not the least, do a financial review on a yearly basis. Check if you are being paid as per the market, check if your investments are giving the expected returns, check if your expenses are in line with your income.

As your wealth is growing, ensure your health is intact to help you create your wealth. As they always say Health is wealth. Do your yearly medical checkup, prevention is better than cure. Follow the steps above and grow your wealth.