The key in building wealth is very simple, yet many of us failed to realize that most of what we need is already there. Most people thought that building wealth needs a vast network, a unique idea and good location.
While it is true, there are other ways to build wealth. Through discipline and consistency. Followed by these tools that plays a big factor in accumulation of wealth. Combining all these will really give you a great result.
As what is stated in Maslow’s hierarchy of needs. Our basic necessities are food, shelter and clothing. But to buy all these, we need money.
Money is a resource that needs to be in constant flow in. Money coming in must be more than what’s coming out of our pocket. It’s a basic rule in finance.
Many have believed that it needs to be big – instantly, in order for one to start a business or to start building wealth. You can do that, but the other way around is to start building it from the ground up. Saving small amounts would eventually become big in the long run, partnered with strategic investing that makes it grow exponentially through the help of compounding interest.
Success doesn’t happen overnight.
The sooner you realize this, the more time you can prepare for your goals. Having the right mindset in a long period of time will really get you to your dreams.
Many people tend to wander early on in their lives. Then they went building their own family, hoping that they would find their purpose in life due to their responsibilities. They sent their kids in school, worked hard, threw a lavish birthday parties, invited friends for weekend vacations and yet they forgot to educate themselves, start saving and invest for their future. They also forgot to have enough funds for their child’s education.
Until they realize that they don’t have enough for their retirement and responsibilities are controlling their lives later on of their life.
Rate of Return
This is really important to understand. Most people tend to save but they don’t know how to actually grow their money.
Rate of Return is the gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Meaning to say, how much value adds up on your capital.
Over the long haul, this is going to be your tool to make your money work for you. This is going to be your basis if you can beat the enemies of wealth.
Enemies of Wealth will be published on the next article. Watch out for that.
PS. We are advocating Financial Literacy, teaching people around the world how to achieve their financial goals. Our mission is to help each and every family to achieve financial independence and away from financial insecurity during this challenging times. Attend our FREE Personal Finance Seminar. Register here.
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