To many of us, being wealthy means driving the latest release of top of range automobile or living in the most magnificent mansion, yet to others it’s having a fat purse.
But most will agree that all these characteristics are rather superfluous and may be termed as the glittery millionaire attitude from first generation millionaires. Persons fighting for recognition by suppressing their unpleasant past, in an attempt to prove to the world they have finally made it. To such, wealth is a symbol of status.
Why did i start this write-up with a castigating tone!
It is imperative for us to agree on a common platform on what we call wealth when it comes to finance, may it be personal or corporate finance for that matter. According to Wikipedia, Wealth is the abundance of valuable resources or valuable material possessions. As opposed to the above painted picture, valuable resources have ability to regenerate more valuables and may not be represented by consumable resources. We must also agree that to have more of this wealth is good and to have none makes you poor even to the point of affecting your self worth.
Enough said on the wealth and its meanings to various people. Back to our question, how much do you really need to create wealth?
This is the million-shilling question that we will try to answer in the article. Ask any person who is not wealthy why they are in that predicament and you will get a definite answer – “The little I earn is not enough to save.” While you may agree with this fork that you can’t save if you have little income, ask another question, How much would you save if you got an additional 10% into your current income? You will agree with me, over 95% will save less than the 10% increment. And you ask why we are living in a rat-race business, from pay cheque to debt to pay cheque? NONE has enough! not even the so called wealthy. Watch out for our next article on the saving and investment culture creation, but for now let’s discuss the 3 main actions to make you wealthy.
The answer to our main question – All you need to grow wealth is consistency (Discipline), Patience, and Objectives. We start our analysis from the latter.