WEALTH – The term is usually associated with the rich, or as it is popular in the millennial culture, The Wealthy. But, does wealth, or being wealthy has only singular meaning that is being conveyed by the media, or does it hold multiple avenues in its core elucidation.
WHAT IS WEALTH
Wealth in its true sense holds a number of meanings, interpretations, and connotations. But in a practical sense, Wealth is anything that lets you meet your financial goals after you have met with your expenses(that may be recurrent or impromptu). Wealth depends on a person’s needs and goals, which are dynamic, depending on a person’s exposure to his surroundings, new avenues in life as well as his needs, which can be physical or just a state of his mental thirst.
All the above jargon can be demystified into the following statement:-
Your wealth, or what you are worth is the difference between what you own(Assets) and what you owe(Liabilities).
PLANNING TO CREATE WEALTH
Money can work 24 hours a day, I am not sure if you can work that hard
Everyone has desires. Some want to retire super early and spend their time in the Bahamas sipping coconut water, while others want to drive Luxury cars and live in most premium houses, while some want to make their children study in most premium institutions of the country. Hence, it becomes important to know the affairs of wealth fabrication.
The key to understanding and getting started is to know the link between wealth creation and financial planning. Although media has restricted financial planning to just planning your investments, in the real and practical horizon, it isn’t true. The factor of linking your aspirations with reality is a very critical element. You might want to build a 3 storeyed bungalow but your finances can only allow you to buy a 4 BHK apartment. You need to strategize the availability of the right amount of money at the right time.
People are usually delusional that investments as a weapon to create wealth can only be beared by the opulent. Pondering over wealth creation strategies and vehicles might make klipspringers jumping around in your head, but in the end, it is all about being meticulous about your investments and you will be able to fulfill all your dreams.
Do not save what is left after spending, spend what is left after saving
There are a series of steps that can be followed to strategize your investments process. Usually it starts with brainstorming the mountains you crave to climb and the time frame you wish to land on them. The second step includes knowing your monthly savings, without you living a life like Mark Watney lived on Mars in “The Martian”. Be realistic and you are good to go. The third step includes being financially literate, knowing the financial weapons you can leverage, diversifying your arsenal and knowing the power of the eighth wonder of the world, i.e compounding. Then you need to plan out your investments and map them with your goals, tweaking them along the journey.
You might dance of streets for a few pennies or get promoted to a partner in the firm you are employed in, but you need to be on the right track and use these bonanzas to supplement your progress towards your goals.
WHAT TO DO
In any investment, you expect to have fun and make money
Investments are like relationships, you have to be committed in order to ripe long term fruits. It is better to start as early as possible. For instance, if someone would have invested a rupee in Reliance in 1996, they would have got 776 Rs out of it as of today.
You must be thinking that having your goals listed down and knowing your monthly savings is fine as the first step, but how do you get aware of being financially literate. Well, fret not, because this blog initiates our new series via which we will be inculcating the knowledge of wealth creation systems. By the end of it, you would be able enough to strategize your wealth creation journey and start working towards it.
Stay Tuned . . .