WEALTH CREATION Financial education is a goal many strive to achieve yet only a few accomplish. Why do they fail? Do they fail because they are not equipped with knowledge? what’s their definition about wealth?
Unfortunately, many people are trapped into the conventional thinking of spending their prime years studying formal education with expectation they will get a job to sustain their desired lifestyle ,work so hard for money, save for retirement and wait for the government to secure their future through pension funds and social security systems.
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Interestingly enough, they are always willing to spend their lives working for other people visions and that’s how the cycle of poverty is passed into generations
What is Wealth Creation
What is WEALTH CREATION? This is having income generating assets that continuously increases your cash flow even when you are not working.
To earn wealth is but a slight burden upon a thoughtful man. Basically, to accumulate wealth over Time you need to make money before you begin to save for investments. You need a long-term source of income that’s sufficient enough to have some left after you’ve covered your necessities and debts.
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Cash flows to anyone who puts not less than 10 percentage of his earnings into making smart investments and taking advantage of compound interest over Time; where your income is re-invested together with principle over time and thus creates a continuous passive cash flow of income where you don’t have to work for someone under rules. Remember, a coin is always a willing worker. it’s always eager to multiply when opportunity presents itself. Therefore, it should be used for generating assets and that will make your wealth to extend beyond your income.
However, the passive income must be safeguarded not only by understanding the risks aversions in your portfolio (investments) but also by ensuring you live within your means and avoiding lifestyle inflation. Lifestyle inflation is ‘unusual truth’ of humanity and states which will grow our expenditure to equal our income unless we protest the contrary. Every single coin that comes from the passive income must be reinvested so that it increases your cash flow and a growing surplus for future use. so you should plan certain investments or provisions that may endure Even for your generations.
Who is a wealthy Man
A lot of assets gained give a man a gainful experience but a man is called wealthy by the influence he brings to the society. First to gain respect, you must learn to pay your debts with promptness interest),not purchasing that for which you are unable to pay. second, you must take care of your family that they may speak well of your family, fourth make a will of record that in case of his last breath, proper division of his property be accomplished. Lastly, he must have compassion upon those smitten by misfortune and those with reasonable limits.
In conclusion, money is the medium by which earthly success is measured. It’s plentiful for those who understand the laws that govern its acquisition.