Building wealth may appear to be complicated, but it is fairly simple. In essence, you don’t have to earn money by making six figures to meet this goal. There are other parallel ways as well.
There are various factors over which the concept of wealth creation satisfies every individual.
- Being able to afford the lavish life you desire!
- Living a life where there are no debts to pay and not getting that creditor’s call.
- Earning that great to have great corporate connections.
- Having a large nest egg and having loads reserved for the future.
- And many more!!!
Though the definition of becoming “Rich” varies from person to person, the absolute key to achieving these goals is just the one – THE GREAT MONEY.
Before hunting down and picking the one best way that satisfies your Wealth Generation, do keep in mind that ‘Making Money is not an Overnight Process, it takes time’. Now at this point, some are disheartened as they might fear getting invested in that TIME of making money. So for them, instead of thinking that “Rome was not built in a day”, try to believe that “Rome was built every day”. Therefore, money-making will take time, but every single day, the process will get better.
Increase your income
Gone are the days, when there is just one source of income to make money. By the passage of time, not only the number of earning members in the family has increased, but also the source of income for each member has also doubled.
Whether you have just started earning or are in the middle point of your career, having multiple sources of income is the most fundamental step in making money and contributing towards wealth creation.
Following are some ways from which you can step your foot into multiple sources of income.
1. Start Investing
This advice will sound like “Be Careful” from your oldies, but in today’s era, this is the most basic way to amplify your wealth generation process. It is a riskier act as well, but then some tools and advisors are there to aid you and assist you in mitigating that risk factor, by guiding you to take calculated & educated risk.
No doubt, if you are great at figuring out economic and market conditions, you don’t need an advisor. But in case, if you need one, these advisors, who are trained and have great expertise in personal finance, financial management, etc., will teach you enough so that it will not only reduce your risk factor but also help in the process of making money and founding the stepping stone for wealth generation.
Investing requires the first step of DEMAT Account creation. If you have one, that’s great. Just open it and start investing. If you don’t have one, open it and land yourself in the world of Investing.
2. Improve your skill set and take up high-paying jobs
There was an ancient notion that once you get into a job, you don’t need to learn more. Just wash this away. Always be a rigorous learner. In this fast-changing and highly competitive era, your unique skill set will play your competitive edge and help you in making money more and more. Don’t wait till the next time of promotion. Learn new about your job profile and take the initiative to lead a team. Gradually and eventually, you will start noticing the add-ons in your basic salary.
Therefore, be an active learner and move ahead of your peers.
3. Ride Side Hustles
Even if you do a job, you don’t have to depend solely on your pay slip. Until you are not working 24*7, there are many ways to jump into a side income concept to make money and generate wealth.
Everyone one of us has some hobby or talent, and once we all wanted to work in the field of our passion. But that one factor, which did not allow us to land, is the failure of capital investment. This is something that none of us wants to face.
In this suggestion, you don’t have to invest your capital and create an infrastructure to follow your passion. All you need is to find that particular agent who is going to pay you for your skills. Some of the following can act as a kick start for your second source of income that will help you in making money more.
These are where you just need an internet connection and you can work from the comfort of your home.
- Freelancing as a writer, blogger, graphic designer, web designer
- Online tutor, Coach, Counselor
If you are not the tech-savvy one or are inaccessible to good network connections, then the following ideas can help you in making money, apart from your regular income.
- Part-time professor at local college or coaching
- Part-time gym instructor, if you are a fitness freak
- Tax accountant
Whatever your job is, you have some time remaining, invest it in something to convert your hobby into a monetary gain, and move ahead in the process of wealth generation.
Save More
Remember, “The money saved is the money earned”. Saving money is another significant step in generating wealth. Once, you are earning enough to cater to your basic amenities, it’s time to switch ON to SAVING MODE. Keep in mind, that saving small amounts consistently is automatically compounding to substantial wealth generation.
For the same of same, inculcate these practices in your daily routine.
4. Create a budget
This concept is something like a resolution, that we all make on starting of every year, but as the fate of resolution continues, it vanishes away. So, improve that act and make a habit of making regular budgets. It will give you an idea about your planned expenditures and contributing saving funds. Not only this, but the proper allocation of the budget will also help you in tackling any unplanned expenditures. Moreover, the budgeting will also tell you about your unwanted expenses, assist you in managing money in a better way, and eventually help you to earn money.
To maintain a feasible budgeting system, it is recommended to update it every month. There are of course many budgeting plans; the one which is followed most is the 50/30/20 rule. This methodology suggests that 50% of your income goes into essentials, 30% is spent on desires and luxuries, and the rest 20% is affirmatively kept in a savings fund.
5. Always build an emergency fund
Can you imagine a sailor without a compass or a traveler without any map? That is something a spender looks like without a budget, and will eventually suffer a financial crash. Therefore, make budgets and spend accordingly, to make money and generate wealth.
An emergency fund bag acts as a savior in your unexpected life events, such as the loss of your job, any huge medical emergency, etc. Such happenings can disassemble your wealth generation activity if you aren’t backed by an emergency fund. Two common things that you can step in can be selling out securities and paying off debts.
When you start incurring debts, the funds move exponentially downwards. The end is not here, what about the interest acquired on debts! On the other hand, if you start selling off your investments, you will lose the amounts and interests earned, in the future over them. Hence, to avoid such incidences, building an emergency fund can be a justified decision.
Create an emergency fund as a backup to settle unfavorable expenditures.
The final call
Making money and doing wealth generation is not rocket science. With patience and perseverance, anyone can grow their wealth. But before starting this journey, it is of utmost importance to equip yourself with paramount financial education.
Many people glance at their retirement funds to generate wealth. You don’t have to do so. At the same time, you can make money for your retirement, and move forward into wealth generation as well. All you need is some basic education and skill set to support the factors.
Edited by Prakriti Arora
