4 Steps to build wealth


Over the time, humans have come to rely on things to move the economy forward. Before money was introduced as a means of exchange, means like trade by batter existed to enable people to perform basic transactions of buying and selling.

Now money has phased out the era of trade by batter as we simply buy or sell what we want and receive money in return.

However, with the increase in cost of livingit becomes increasingly difficult to amass wealth as people are caught in the web of paying expenses and having little left over to save or invest. There is a way to break from this vicious flow of poverty.

1. Remove debt:

The importance of paying off your debt can never be over emphasized. Debts when left unattended to accumulates over time and the debtor is at the mercy of the lender no wonder the Bible says the the “borrower is a slave to the lender”. Freedom lies in paying off your debt and knowing that your income belongs to you and you alone.

2. Spend less:

Cutting your expenses according to your income does a lot of good as it helps you avoid borrowing. When a paycheck is received, it comes along with the feeling to spend. All of a sudden you realise you need to buy new stuffs or need to upgrade your stuffs. Once you are able to stiffen that desire to acquire things you don’t truly need, you would find it easier to cut down on your spending habits. Time has proven that taking a paycheck and running off to spend leads to borrowing before the month runs out and one continues in the cycle of borrowing and laying off debt. Going by this, you can agree that that pattern does not lead to amassing wealth if anything, it draws one closer to poverty.

3. Earn more:

The importance of skills can never be overemphasize in a world that relies more on skill and information than on certificate. Having extra means of incoming generation goes a long way in building wealth gradually.

Relying on a monthly paycheck is not the solution. There is no harm in leaving your comfort zone, overcoming your fear and reaching out to try other means of income generation especially using the leverage of internet. Having extra means of income generation aside from your regular job makes it easier for your income to be above your expenses and you having left over to invest or save. This inturn gives you confidence and satisfaction of knowing that you are in control of your income and your life especially when you remember the moments when you couldn’t afford the things you want because of a tight budget.

So in other to amass wealth, try other means of income generation.

4. Invest wisely:

Investing is another means of generating income. There are varieties of things to invest in especially in this digitalized world from owing shares in your favourite companies like Coca-Cola, Ford, e.t.c to investing in bonds and stocks. What ever investment you may decide to choose from, it’s always important to be careful as there are con men everywhere.

However investing gives the leverage of using your money and getting return on investment (R O I) from your hard earned money.

Reference:

Proverbs. KJV Holy Bible

Published by Ernest I.

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