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Automatic Wealth Creation Guide

Wealth creation

Wealth creation is not important of itself; money is just a means to an end. The more you have, the more options open up to you. It gives you freedom to do what you want in life.

You may want to run a business, travel the world, have a family, help others, or just relax and enjoy life. Investing in some wealth coaching early on will put you streets ahead of everyone else.

 

If you follow the basic wealth creation principles outlined here, you will automatically get richer. These are simple strategies used by every successful investor in the world.

Get rid of “bad” debt

As any good wealth coach will tell you, this is the first step in wealth creation. Bad debt is credit card debt, hire-purchase, car loans, other high-interest loans.

Good debt may be a home mortgage, investment property mortgage, or business loan. You must erase bad debt from your life before trying to increase your wealth.

Get financially educated

This may sound daunting for some people, but you don’t need to go out and get a business degree to learn the basics of smart money management.

Imagine how much you could learn in a year just by reading books and articles about money for 20 minutes a day. This information is all around us – on the internet, in books, magazines, newspapers, TV and radio.

Invest at least 10% of your income

It’s not how much money you make, it’s what you do with that money that counts. Some people think they can’t possibly save any of their income, as all of it is used paying for the necessities of life.

Wrong.

Anyone can invest at least 10% of what they earn. Look at exactly where your money goes, break it down, and recognise those areas where savings can be made. Alternatively, find extra income from somewhere else.

Pay yourself first

Set up a monthly or weekly automatic payment into an investment vehicle. The sooner you start on this road, the greater the rewards. Such is the magic of compound interest.

Buy assets, not liabilities

With the money you have, buy more assets than liabilities. An asset is something which (generally) increases in value, such as shares, bonds, property, and businesses.

A liability is something which decreases in value, such as cars, clothes, and other consumer goods. This doesn’t mean you have to live like a pauper. It just means you know the value of accumulating wealth before accumulating toys and luxuries.

Pay less tax

For most of us, tax is our largest single expense. There are many ways to reduce tax, and keep and invest more of your own earnings. A good accountant will be able to help with this.

What do you think? Let me know in the comments below.

Copyright © 2006-2018 Kris de Jong

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