Wealth building takes time, dedication and discipline. This write up is not a ‘get rich quick scheme,’ hence the use of the word ‘gradually.’ Many people have fallen victim to scammers trying to get rich over-night! This write up will educate you on legitimate ways to build your wealth one step at a time.
There are five ways of making money:
- Working to make money yourself
- Money working to make more money for you
- Winning a lottery
- Receiving an inheritance
- Making dirty money by stealing, robbing, selling hard drugs etc
From the above, only the first two would be discussed here. The third point happens by probability – waste of time! The fourth only occur if you are a relative of Bill Gate, Jimoh Ibrahim, Dangote or those rich folks out there. The fifth point is illegal count me out!
Now, here are a few tips from my research of rich people’s testimonies over the years that they adopted in building their financial empire. They all seem to agree on many areas.
TIME IS ESSENCE
Time is the only resource common to mankind; we all have 24 hours a day. The rich and the poor are gifted with 24 hours each no more no less, the difference is what each does with the time. Now to build your wealth you just have to start early, it’s not too early to start. You can start building your wealth even as a student. Once you learn how to save early it becomes a habit that would grow and stay with you till adulthood. And one good thing is that the money saved would accumulate or even compound over the years to become a fortune. Wait a minute, did I hear you say it is late for you? Well it is never too late to start. You can now.
INCREASE YOUR EARNING
One of the ways to make money is by earning it. As you earn ensure to save and invest what you earn. The amount saved or invested is a function of the earning of an individual. So to build your wealth you have to increase your earning so that your savings and investment will increase in turn. If you have a day job that is fetching you a paltry sum, it is time to seriously start thinking about increasing it. You could do that by getting a freelance job or building a business around your skill or competencies and watch it grow. For example if you have a flair for graphics, writing etc, you could join a freelance site and advert yourself there and before long you would be earning big from it. You could become an e-commerce trader selling stuffs on Jumia, Konga, Kaymu, Jiji, Mobofree and so on. Build multiple streams of income and do not depend on one source; have a day job, start a new gig, run a side business, open an online store etc.
INVEST YOUR EARNING
it is not enough to save part of your earnings, you should consider investment. You might not be an expert in investment but you could consider mutual fund There are a lot of mutual funds in the Nigerian financial market today for you to choose from. Mutual fund investment is a way you can invest your money even if you are not an expert. There are experts managing the funds. They invest the fund on different investment vehicles such as equities, real estate, money market, cash and so on. There is the aggressive or conservative investment option achievable by varying the percentage of investment on each investment vehicle. One important fact about mutual funds is that you can start with as low as N5,000 and keep saving that amount monthly and watch your money grow. It is safe because all your eggs are not kept in one basket – they are spread out. If you are able to religiously maintain a mutual fund account, before long you will be counting your first spare millions.
KEEP YOUR EXPENSES AT A LOW LEVEL
Expenses are like dinosaurs, they devour anything on their path. Your expenses can finish your earning as fast as you make them so keep them low. Do not embark on a spending spree, budget aggressively before spending. Do not think about spending the moment earn or receive money. Forfeit the luxuries of today to gain tomorrow. Stop acting like a child that once he gets a penny from his parents will rush to buy a candy with it.
Debts or loan as sweet as they appear are like poisoned food that appears attractive but kills after being swallowed. I have written on debts in my article “How to Save Money Even if You Earn Peanut.” Try settling existing debts and avoid taking new ones.
In conclusion building wealth takes patience and tact. There are other points to be covered like investing long term, reviewing your asset, updating yourself, analyzing your income/expenses and buying an Insurance Policy. Please stay with me.
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