Your net worth ought to grow with your age as you grow. It ought to double or triple faster than your age because as you grow your needs and expenses become higher. Having a family and meeting their daily needs can deplete your money faster than you think. It’s very important you know that the growth of your net worth can make you wealthy on the long run. You need to work on yourself to improve your finances. You need to know your network determines your net worth and the people around you determines where you are going to in life and where you will be in a couple of years. The action and decision you take, the knowledge and information available to you determines how far you go towards becoming wealthy. To become successful as an investor or entrepreneur, you need to work on these three things to grow your net worth and become wealthy.
UNDERSTAND YOUR ECONOMY
When you understand your economy, you know where the direction of wealth is moving to. When you understand the economy, you understand how and where to invest into and the kind of business to start that will generate steady income When you understand the economy, you will know if it’s FIXED INCOME that is doing well or STOCKS that is the best to invest your money. When you understand the economy, you understand the people and the kind of product and services to offer. When the president was elected, his focus was agriculture and that is where the country’s wealth is directed to.
CREATE STEADY CASHFLOW
When you understand the economy and where wealth will be directed, you need to create a business or investment plan that will generate steady cashflow and make you live above inflation. You choose wisely after doing your due diligence on the kind of business that you will put money and generate better returns on investment. You need to know the investment and business that will preserve your capital and make your mind be at rest financially.
UNDERSTAND RISK CONTROL
When you know the business and investment to enter into, you delve into it with the level of knowledge needed and the risk control to minimize and manage any form of risk. If you do not know or understand the risk involved, you can lose all your money and find yourself in a bad financial situation. Your risk level will keep you on the safe side and grow your networth. For example, before investing into stocks, if you do your due diligence and research well about the market, you will know how to control any form of losses and generate profits.
Knowing these key things will change and turn things around for you and grow your networth. Knowing and doing the needful will turn your financial life and future around for good. When the understand the need of the economy and it’s direction, you are ready to meet the needs of the market and create wealth.