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Entrepreneur's Corner

Dear Entrepreneur, Here Are Top 10 Fastest Ways To Wealth Creation

BY Getrude Mathayo · September 7, 2023 10:09 am

Wealth creation is a slow and steady process that involves financial discipline, consistent investing, and smart decision-making. Having wealth means having to think about money less at a later date. The payoff is that you have to give it a bit of thought now.

Building wealth doesn’t have to be complicated; at the same time, it is not going to be a get-rich-quick thing.

  1. Avoid being financially dependent on another person

Being wholly financially dependent on another person can place you in a vulnerable position. Many people, especially stay-at-home mothers, find themselves trapped in unhealthy relationships, with financial dependence being the major barrier to exit. If you do intend to become a stay-at-home parent, discuss with your partner ways to ensure that you can create wealth in your capacity.

Read Also: The Pursuit of Wealth And Wisdom: Exploring The Impacts Of Early Achievement On Younger Generations

  1. Start saving with your first pay cheque

Your future self will thank you for following this seemingly trite advice. When it comes to investing, time and compounding growth are your two greatest allies, and those investment gains achieved in your 20s will prove to be invaluable over time. The decision to invest from the outset of your career is likely to create a habit of financial responsibility and lifestyle financial well-being.

  1. Invest consistently in a well-diversified portfolio

Sustainable wealth is created by consistently spending less than you earn and investing the difference in a well-diversified portfolio over time. There is no quick way to make sustainable wealth, so be intentional about aligning your budget with your affordability and finding room in your budget to save for the future.

  1. Earn money while you sleep

Time is a great leveler because every person only gets 24 hours a day, which can never be re-created or re-lived. Active income is the money that you earn in direct exchange for your time and skills, and this income is generally limited by the amount of time you’re able to spend doing your job. Passive income is not proportional to the time you spend working and allows you greater freedom, choice, and – most importantly – time.

Read Also: Dear Entrepreneur, Here Are 10 Ways To Build Wealth And Become Rich

  1. Begin your marriage living on just one income

Many couples have claimed this to be the single best piece of advice they ever received. If you’re newlywed and both earning good incomes, consider living on one income while saving the other. When you have children, your future selves will be grateful for the choices your accumulated capital provides.

  1. Don’t move for money

Don’t let the promise of more money be the overriding factor when considering a new job or employment opportunity. Being trapped in a toxic work environment or subjected to an unhealthy culture at work can cost you more in the long run and take its toll on your mental health.

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  1. Beware of soft loans

Think carefully before making interest-free loans to family members or friends. Over and above the risk of not being repaid, you also run the risk of doing irreparable damage to the relationship. Further, your willingness to lend money could be an enabler for their irresponsible money management and reluctance to take responsibility for their financial affairs.

Read Also: 20 Ways Of Building Real Wealth: Your Guide To Success In Entrepreneurship And Investments

  1. Don’t increase your spending when your salary increases

Avoid using your salary increase as a reason to live a more expensive lifestyle. While you may be tempted to buy a more expensive car or live a more lavish lifestyle, consider the lost opportunity costs of not investing the additional income

  1. Automate your savings

Warren Buffett is famous for saving: ‘Do not save what is left after spending; instead, spend what is left after saving’, and the best way to achieve this is to automate your savings by using a debit order system. Map out your goals, calculate how much you need to save to achieve them, and then automate your savings

  1. Know what you own and why you own it

Every asset that you own should be aligned with your financial goals and serve a specific purpose in your portfolio. This knowledge can empower you to make informed choices, minimize risk, and align your holdings with your objectives and values.

Read Also: Kenya Youth Have No Choice But To Take The Ethical Path To True Wealth Creation

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