Why we need to talk about wealth creation

August 14, 2020 8:00 AM

Trusting others is not easy, eventually avoiding discussions on money and wealth. We often reach a stage where we do not even discuss it with our family; talking openly with friends and colleagues is rare these days.

Just like personal life, there are different phases in financial life too.Just like personal life, there are different phases in financial life too.

By Harshad Chetanwala

In today’s world there are logins, passwords and OTPs for literally everything to do with life. The world of finance is becoming more reserved for valid reasons, the most common reason is that wealth is an extremely personal topic. Trusting others is not easy, eventually avoiding discussions on money and wealth. We often reach a stage where we do not even discuss it with our family; talking openly with friends and colleagues is rare these days.

Just like personal life, there are different phases in financial life too. Most personal life emotions such as excitement, happiness, anxiety, fear exist in financial life also. In personal life, we discuss these phases with others to express ourselves, get solace and resolve issues; doing the same in case of personal finance is equally important. There are many who are doing well with their finances and may need the right motivation to take it ahead, again there are those who are fighting the battle of financial stress on their own and appear exhausted. One way to make this perceived complex topic of finance simple is to have relevant discussions.

Money and wealth
Let us take the first step here itself. Is it always that people with more money are more wealthy. We often use money interchangeably with wealth, but money is different from wealth. As per definition, money is something generally accepted as a medium of exchange, a measure of value, or a means of payment. Wealth on the other hand is a great quantity or store of money or a state of being rich; prosperity; affluence. There is a difference between money and wealth and so is the difference in having money and being wealthy. Money is the starting point and not the final product, it is one of the elements along with others. In the case of wealth creation, right assessment, investment avenues and time horizon play crucial roles along with money.

Everyone has 24 hours in a day, the differentiating factor is how do we utilise these hours. Similar is the case of personal finance, a few people are successful in the journey of earning money to wealth creation, some put in much effort and progress gradually while there are others who probably need to give more attention to wealth creation.

One way to build wealth wisely or start thinking in that direction is by sharing knowledge, experiences and progress. Like in every discussion, right knowledge leads to evolution and wrong takes us closer to disaster; hence we must be wise in sharing the right advice and do our homework before accepting any advice.

We go for weeks or months of discussion before deciding on which gadget or vehicle or house to buy; why not discuss similarly when it comes to managing money and wealth. All the buzz around financial freedom cannot progress unless there is financial literacy and financial literacy will only happen when we are open to discussions on it. This Independence Day take the right steps towards financial independence.

The writer is co-founder, MyWealthGrowth

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