In these times, there are names we hear and think immediately about wealth. These people’s names are on the ranks and files of tabloids, articles, newspapers and even in regular conversations. We call people like Bill Gates, Jeff Bezos, Dangote, Strive Masiyiwa and many more in such calibre wealthy people since they have a lot of money. The bane of the whole matter is that they all have simple strategies they similarly use to accumulate wealth.
A survey was carried out in the 1970’s to 1980’s on lottery winners. It was discovered that over 70% of big time winners declared bankruptcy. Furthermore, almost all of them did not have children who turned out rich. We can comfortably say from this survey and other similar ones;as much as it is a big deal making a lot of money, proper money management is really the tool for wealth creation. It’s not much resource sometimes , but resourcefulness with money that determines wealth creation overtime.
Money management is big on what we do with our income, from paycheck to paycheck. The practice we execute around our incomes is a sure determinant of wealth creation.
Money management plays a large role in wealth creation. Money management requires majorly:
Earning
I included this, because money must be made before it could be managed. How then is money made/earned? Simple! Meeting a need and monetizing the servicing of that need.
Apart from illegal means to accumulate wealth which of course has dire consequences, this might be one of the major and almost the only ways to certainly build wealth.
Hence,the more we monetize services towards meeting needs, the more money made.
Investing
The idea around investing is finding ventures and other activities that grow money overtime. Some popular investment channels include stocks, bonds, commodities, certificate of deposits and cryptocurrency. Overtime, there will be some obvious percentage interest on initial investments.
Saving
A simple way to paint the meaning of saving the way a financially enlightened person will do is to call saving – reserve. Saving, a practice as old as earth itself is very vital if one must increase wealth. Saving involves keeping resources such as money for later. Savings should be done regularly whether or not there is an obvious need for it. Remember, when wealthy people are ranked, their savings(money in the bank) is used as one of the criteria in the whole rating procedure.
Spending
What use is money if it won’t be used(spent) overtime? Nevertheless, the correct approach is to make sure that income, if possible, exceeds expenditure everytime. One proper method to ensure this is to take note in writing what we spend, What we save and what we invest. Taking down regular records for our money helps track and monitor our spending habits.
At the end of the day, it’s worthy to repeat the unsaid mantra of wealth creation “Earn, invest and save more than you spend; it tends to wealth.
Author: Mayowa Anowo
