Wealth can be defined as the ambitions and aspirations of an Individual in terms of his financial goals.
It determines the how passionate is the person to create his multiple source of income and further using those income how much he build wealth on that money.
In simple words it is the money that you want to make on money and asset inputs.
It is your attitude towards the money you are making and will power to build wealth on the money you are making for achieving the financial freedom.
Everyone in this world wants to live life without being tensed about the money they are spending on their luxury life.
Now I know it’s simply the flipping of asset to get benefited by the appreciated value of asset to earn from them.
Moreover assets are an important source of income as they give rent, royalty income etc. So now you must have curious how this is helpful in wealth creation.
Well there is the answer in the question the income from these assets are surplus funds and also if the assets are appreciable assets then it is cherry on cake.
This surplus fund can give you the capacity to buy multiple assets and from them many more and further you know the process.
The inputs are just awesome to your financial health for you and your family too for live a life of financial freedom.
That’s why financial education is very important, moreover your expenses should be well monitored. Learn more
What’s in it for you?
- Wealth Creation Meaning
- Wealth Creation Plan
- Importance of Wealth creation
- Wealth Creation tips
- Wealth Creation in India
Wealth Creation Meaning:
Wealth creation is the building of multiple source of income and right allocation of assets having an appreciating monetary value and right decision at right time on flipping of assets.
You can acquire many intangible assets too like goodwill and copyright for the matter to create monopoly in the industry you are interested.
Wealth creation plan:
In my opinion this simple plan I will suggest you for the better management of your wealth to build ample amount from that only.
First create a primary source of Income at the scratch of your career when you are a newbie in the industry.
Then do your PR work and socializing to understand how the sector you have chosen works.
This way you can take right decision at the right time when to buy your first asset.
But mind you the money invested should be your surplus funds or else you can’t afford future emergencies.
Some portion of Primary income must be saved as emergency fund.
Then the surplus fund be invested in the retirement schemes, insurance etc.
Therefore you should know about Retirement planning.
Start from high risk taking investments because you are cable oh high risk at the beginning of your career.
High risk will give you high returns that’s how it works.
Then rent them or get royalty income from them. The input funds from these will help you to acquire other asset.
Then flip the assets on appreciated value; the cycle will go round and round.
In some years you can’t believe how these assets boost your net worth.
Importance of wealth creation:
Wealth creation is very much important you can’t just let your money be one place without having growth to it.
Wealth creation maybe a slow process but once it started its compounding you can’t even wish to not grow your wealth, so trust the process and be discipline.
This needs some of your pleasures to be sacrificed to give benefit in the long term.
As Henry David Thoreau said,
“That man is richest whose pleasures are cheapest.”
Here are the factors that will make you understand the importance of wealth creation;
Wealth Creation Tips:
Here are some tips that will help you to organise your wealth creation strategy,
- Always vision long term benefit
- Identifying loan types you are getting into
- Never hesitate to take risk at the beginning of your career
- Made a side Business income on the field you are interested
- Acquisition of liquid assets and flipping of assets thereon
- Beware of your needs and wants
Now explaining about above said things; some I discussed earlier so I won’t bore you by repeating them.
But yes some qualities you should have like long term vision, disciplined and simple life, and risk taking guts.
Then about loan I can say loan is a trap but if only if the interest rate is high.
In case you want to start a business on the field you have knowledge about how things work and if you identified profit potential then go for it and take a loan.
Once you trapped in the loan hurdle it is really very dangerous if you won’t get any output from the thing on which you invested the loan amount.
Wealth creation in India:
Now in terms of wealth creation in India normal people aren’t aware of it as the top 100 business tycoons together share a 71% of India’s total national income and rest is comprised by the people left.
As you can see that it is very low and so it is a very need to understand about money and wealth management then get dive into it.
So financial education is really a need, as they say the half knowledge is as hazard as a two way sword it can harm you both ways and you can’t even do anything about it.
So self education must then implement the education on the real world market to get one step ahead from other people.
Then start a primary income and capitalise it to start a side hustle and acquisition of assets.
In India real estate and gold and jewellery items enjoy an inelastic demand so these are the appreciable assets and are very liquid in terms of monetary value.
So the flipping and rented income from these assets is very much preferable.
Then there is equity and mutual funds and retirement schemes and insurance policies which will give you a moderate return.
Remember you can’t really own them without saving your money so first analyse your needs and wants.
Reduce your wants and live a disciplined life that is what called long term vision.
As Ayn Rand said,
“Money is a tool. It will take you to wherever you wish to, but it will not replace you as the driver.”
Lastly assets are precious as their definition and it’s essential for building a better financial future by means of acquisition, allocation and square off. The more liquid the assets are the more easy for you to build wealth and achieve financial freedom.
So it depends upon you how you use your money to build wealth.
You can build your wealth by investing the money you make and flipping the liquid assets having appreciating monetary value.
You can first learn about equity market and analyze yourself to identifying the undervalued stocks for maximum benefit.
Yes it is a part of wealth creation in terms of investment instrument.
Wealth creation is the acquisition and selling of assets and distribution means versatility of assets you own like Gold, estate, equity and insurance etc.
Wealth creation in business mainly gives importance to acquisition of storage space or warehouse and intangible assets like goodwill and copyright.
When listed cooperates earn profit they distribute dividend to the investors but some cooperates distribute bonus of equal monetary amount to the investors. This helps us as we get the shares free of cost and the according to the market condition it gives a percentage income per share we are holding.
It is a disciplined plan by understanding market behaviour and right decision making in terms of building income sources and flipping of assets.