Want to create wealth? Here is how to walk the path to prosperity

By: |
Published: December 18, 2018 9:34:47 PM

It is said that if all the wealth of the world is distributed equally among the people – rich and poor alike – after a decade, the rich will become richer and the poor will become poorer again.

how to become wealty, how to become rich, wealthy people, poor, middle class people, Warren Buffet, spending habits, needs, wants, desire, path to prosperity, multiple sources of income, taking no risk is biggest risk, risk taker, savings, investments, spending, disposable incomeIt is extremely important to look for opportunities to invest and not just to save for future spending.

It is said that if all the wealth of the world is distributed equally among the people – rich and poor alike – after a decade, the rich will become richer and the poor will become poorer again. No, it’s not the fortune, but the difference in desire and spending habits that makes a man rich or poor.

As described by investment Mogul Warren Buffet, you should invest first from your income and spend the rest to become wealthy, unlike the conventional method of spending first from your income and then saving, if any money remains.

So, to gain prosperity, you have to inculcate the habit of controlling smaller desires to achieve the bigger desire of gaining wealth. It doesn’t mean starving, but differentiating between need and want and spending to get what you need, rather then wasting money on things that your really don’t need.

For example, if a smaller car may fulfill your need, there is no point in wasting money to get a bigger car and continue to struggle for earning more money either to pay back car loans or to chase another unnecessary target. Rather, you should invest the differential amount to enhance your wealth and subsequently acquire the bigger car, when it becomes a necessity.

So, just sacrificing the present desire won’t be enough, but you should strive to accumulate wealth by investing whatever your save wisely. Because it is the inherent trait of wealthy persons to invest first from their earnings and spend next. While the trait for poor is to spend all the money they earned, that of middle class people is to save to expand the future spending and not to invest to create wealth. It is extremely important to look for opportunities to invest and not just to save for future spending.

Again, the way to amass wealth calls for taking some risks, because it’s risk that generates return and you have to have the burning desire of become wealthy to become a risk taker. If you remain fearful of taking calculated risks, you will continue to put your money in risk-free savings and won’t be able to be able to become wealthy, because inflation will eat up whatever return you get from such savings.

So, invest first from your income and spend the rest to control your spending habits by reducing the disposable income. While investing, first take small and calculated risks, which will make you courageous to take bigger risks as you become capable to do so after opening up of few alternate sources of income.

Moreover, it is said that taking no risk is the biggest risk. According to Buffet, a person must have multiple source of income, not only to create wealth, but to survive if the single source becomes dry. Just don’t become a smart employee and work for extended hours to enhance income, but become wise and find ways to earn from the efforts put up by smarter people. Take risks when you have source of income to create multiple sources to widen the path to prosperity.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition