Know The Simple Rules That Help You Build Wealth

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Most of what we call politics revolves around what you need to do to make a country rich and for lawmakers and economists, few things dominate their mind more than this question; “How do we make the public more productive and the country rich?’’ If a major portion of the population is poor and/or unemployed, the economic development of the country is directly affected as evidenced through the basic economics concept of demand and supply; if the consumers do not have enough disposable income, the suppliers will not achieve the selling of their surplus goods or services making their progress low. The result is then a poor nation whereby a select-few, with know-how and necessary skills when it comes to wealth creation, gain control of the nation’s wealth and resources.

Let’s get back to the question; what do these ‘select-few’ know about being productive and how can we teach it to the rest of the population ensuring the prosperity of both the people and the country? The answer, ironically, is simple process which I am going to share with you. Have you ever wondered why so many men work hard throughout their live and do not seem to achieve anything in particular and others who do not seem to do much work and being successful in whatever they do? What made the first group a failure and the latter successful. Here is the difference; one group abides by the laws that govern the building of wealth and the other group doesn’t.

The first step towards wealth is living by the habit of saving. There are many occupations from which a person may earn an income from and each is a stream from which a person may divert some of the earnings to create an estate for his/her future. Wealth like a tree grow from a tiny seed, and the small savings you divert from your income is the seed from which your tree of wealth will grow from. Pay your future self before anything else. Base your savings on a percentage such that whether you earned less or more on that period, you have put aside a certain amount. It may be hard in the beginning but it will pay off in the end.

Once you have started saving, you can proceed to the second step; control your expenses. For you to save, you must learn to live by less than you make. There is a popular misunderstanding between a need and a want. A lot of people buy things intended for comfort thinking that its necessary for survival. Don’t buy $100 wallet and have nothing to put in it, instead buy a $10 wallet and have $90 to put in it. By controlling your expenses, you are safeguarding the diverted portion of your earnings.

After saving and controlling your expenses, you can then go to the third and most crucial step in the process; investing your savings such that every dollar you saved may earn another of its kind. A person’s wealth is not measured by what he/she has deposited in the bank but the income he/she has built if from.  This step is what will elevate you from earning from your sweat to earning from dividends. Your savings are now working for you. And the earnings from your dividends is then reinvested creating multiple sources of income until you no longer need to work because your money is working for you.

Now, you take the forth step towards your ambition; securing your investments from a loss. This requires a bit of wit. First, try to invest a small portion and observe if that business is good enough for larger portions. Don’t try to force your way to abnormal profits. Invest only on businesses you are familiar with. One, where your principal is safe, can be reclaimed if desirable and cannot fail to collect a fair rental. Secure the advice of those experienced in the field and let their wisdom protect your investment.

When you have learnt how to make money, keep it and grow it, you can take the final step; insuring a future income. The life of every person proceeds from childhood to old age. This no man can deviate from unless he/she dies during this journey. Therefore, it is suitable for a person to make preparations for a suitable income in the days to come when he/she is no longer young and for his family should he/she is no longer there to support them and comfort them. This preparation begins with buying a house and gaining indebtedness from a landlord. Pay your debts with all promptness in your power. Take care of your family and educate them that they may also know how to acquire money, keep it and know how to use it. Make a will that, in case of your death, there is a proper and honorable division of your property among lawful heirs.

You may be wondering why so many people are poor when these simple rules can make them rich. Well, this simple process requires desire, commitment, patience and persistence which are qualities most people lack hence the result. In other words, if have these qualities and follow this process you will find yourself among the affluent in your location no matter where it is.

There more wealth out there than one can imagine and the observing this simple law will guarantee the prosperity of each of us and in turn that of the nation!

           Written by Mohamed Mohamud Aden Shire

He can be reached at: mlacag114@gmail.com                                                                                                                               

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