Wealth Management – 5 Top Tips to Mega Wealth
To many individuals and organizations, financial freedom remains elusive and unachievable. This is influenced by sets of beliefs and information emanating from our different homes and environment.
Many of our homes are poor or middle class in nature making talks about money and finance a scarcely discussed topic. This notion is practiced by most persons and transferred to the next generation unknowingly. They have opinions like-money is hard to find, money does not grow on trees, opportunity comes but once, the government will take care of me in my old age et cetera.
Here are five steps to beat this trap and move ahead to financial freedom.
EARN AN INCOME
Only those who earn some amount of money at different intervals can cause a difference in their financial world. It could be income from assets or income coming as salary. What you earn generally is equal with the quality of life one lives.
It does not matter what you earn and where you are. Once you are involved in any labor that pays you as at when due, you have taken the first step.
BUDGET AND PLAN
Having earned your income, the next step is budgeting and planning how the income will be used.
Budget simply put is a written guide accepted by oneself which stipulates how when and why funds must be spent. Thus a proper guide, call it a map.
Then the planning takes care of tomorrow by today’s practices. These two practices will set out what you want to achieve with what you already have and have agreed to invest.
These acts alone makes you stick to a format of spending less than you earn and equally mandates you to invest the extra income into other avenues that yields income in the future.
Taking care of ones financial future is a solution that comes automatic. It demands careful education on oneself to acquire basic financial skills. Education is a life long project and that of finance is of a great need.
Unfortunately, this education is not what you get only in classrooms. You can get enough dose of it by reading financial related books, attending seminars and independent mentorship. Also learning on the job and picking the lessons from the streets are also more acceptable. Exposure to real investment practices allows someone to personally choose from various investment opening, that that suits him better.
Investment is directly allocating funds from your earning into secured profit yielding ventures. It does not matter how small it might be at the beginning but the regularity of injecting more funds into the investment is what counts. This could be in short term, medium term and long term.
It is advisable to start earlier even with small regular inputs. Long term investment turns out unbelievable returns at the end. And that is the fourth step.
COMPOUND YOUR INVESTMENTS
Compounding of investment is the forerunner of mega fortunes. This fifth step accounts for
Compounding of investment is a process where earnings from the first investment are re-invested several times for years. The principal is also inclusive.
Compounding of investment thrives on the notion of slow and steady wins the marathon race.