3 Proven Steps to Manage your Money and Quickly Build Wealth

Poverty is the problem, but wealth is the solution. There is plenty of poverty in our world today because most people don’t know how to create wealth. This article is written for you if you are looking for ways to create genuine wealth and build a great future for yourself. 

There are three basic but proven steps to creating wealth. These include (1) Get a source of income, (2) Save part of your income (3) Invest a part of your saved income. These steps can make you rich as further explained below.

 

1. Get a source of income.

To create wealth, first, you need to have money, and to have the money you need to provide a service or sell something. This means you need a source of regular income. Once you get a regular inflow of money, then you can proceed to the next step. You can get a regular income via any of the followings;

• Get a job: Job is the work that someone does to earn an income. Depending on your education, qualifications, talents, or energy, there are different types of jobs you can get. You can work as a cleaner, salesperson, teacher, etc. 

• Involve in trading: Trading is buying and selling. To get income by trading, you can buy useful items at cheap prices and sell them at fairly high prices to make some profits. 

• Provide a service: Service is something that the society needs such as transports, fashion, teaching, etc. You can learn of any service you like, get a license for it, and get a place to provide the service for money. 

Once you have found a legal way to make money, either through a job, trading or by providing service, the next step is to gather your wealth. 

 

2. Regularly save a part of your income

The second step in wealth creation is to gather the capital you need to create wealth. This involves a very simple but difficult habit of saving a part of your income. To do this, you will save at least 10% of every income you get every time you get it. This savings is a must and is not for you to spend or use for anything. But it is for you to keep. It is the money you KEEP TO CREATE YOUR WEALTH. It is your financial asset. Your goal is not to spend it to increase it. 

Many people are in poverty not because they don't have a regular income but because they don't save part of their income for wealth creation. 

Imagine, let's say you save $200 every month, that would be $2,400 (12X$200) in 12 months, $4,800 in 24 months.......$12,000 in 60 months etc. 

And you can always increase your monthly savings depending on your monthly income. The joy is that the more you save, the better you will feel, and the more sense of peace and happiness you will enjoy. This is because you will see your financial strength increasing each month. This is not yet your wealth, but it puts you in a position to build your wealth. Now you can go ahead to build your wealth.

 

3. Invest a part of your saved income

To build your wealth you need money, but not the money that you need for your daily life. You can only build wealth using the money you have kept for the purpose of wealth building.

So how do you build wealth? 

At times many people think they can build wealth just by working for money, whereas in fact, people can only build wealth by making money to work for them. 

 So to build your wealth, you will make part of your saved income to work for you to bring more money for you. This can be done by investing a part of your saved income in one or more of the following ways after adequate research and understanding of the potential risks and profits that may be involved.

• Lend a business owner: You can lend your money to a successful business owner and get a certain commission with your money (i.e. 10% or as determined) at the end of an agreed time. In this way, instead of leaving your money in a bank account without any interest, your money can be generating additional income for you without you doing anything. 

• Buy a share in the stock market: You can also put part of your savings to buy shares from the stock market from a successful company or funds you believe in. Usually, on a long-term basis, a share value can increase by 100 to 500%, especially if the company or fund is a successful one. 

For example, if you bought a share for $1000, and the share increased by 500% in two years.  Your money would have increased to $6000 within the two years. Meanwhile, that would not have happened if you had left your money in a bank or if you had no money to invest. In the stock market, you can buy and sell as many shares as you want at any time. 

• Buy and sell land: You can also use part of your savings to buy land near cities and sell the land in the near future when the price would have increased. The more land you buy the higher the profit you will make, and the wealthier you will become. 

• Invest in business opportunity: You can invest in a business opportunity such as agriculture production, farm produce sales, or buying and selling of any profitable commodities, which would not require too much of your personal time. You can also hire a personal assistant or manager to manage the business for you with proper record keeping and accountability. 

 

Wealth creation is possible for you. All you need to do to create wealth is to do what other people have done to create their wealth. These are the things described in this article. Although these are the basics, you can begin your journey of wealth creation from here and learn your way up from other sources. 

There are many books, websites, YouTube videos, or podcasts that are based on money management and wealth creation. You should also use them as other sources to learn more about wealth creation.

I believe you will achieve your goal of wealth creation and build a great life for yourself if you persist.

Rufus J. Akinrinlola, MSc. 

 

A question for readers:

What other way do you think or know that people can create wealth? Comment your answer below to benefit others.