Generating wealth
The billionaires who appear on annual lists of the world’s wealthiest
individuals may have built their empires in different ways, but almost
all relied on starting with at least a little cash to invest.Building wealth
Most people begin by earning an income and saving a portion
of it to build wealth, ensuring they have financial security in
the future. Generating enough money for business ventures or
investments goes hand in hand with creating wealth. Making
small changes in lifestyle can cut spending and increase savings
so even people on the lowest incomes can take their first
steps on the road to affluence.- Earn income
Converting income to wealth
is crucial. Working to earn
an income, whether actively,
passively, or a combination
of the two, brings essential
money into the household
on a regular basis.
2. Store and save
A strict household budget will
reduce outgoings, which can
then be reinvested.
❯❯Active earnings Saving can
maximize money received
and workers can relocate for
a potentially higher income.
❯❯Passive income Income can be
boosted with investments, and
by buying and selling possessions.❯❯Track spending Monitoring
money going out will indicate
where costs can be cut.
❯❯Set a budget Sticking to a plan
makes it easier for individuals to
see the path to personal wealth.
❯❯Build credit High savings and
low debt ensure a better credit
rating, as does paying your bills on
time, allowing options for future
investment borrowing.US_160-161_Generating_Wealth.indd 160 13/10/2016 16:20