Of course, the process of wealth creation is a long drawn process held up by 4 critical pillars of strength. It needs a roadway to financial independence because major decisions are taken up thereafter.
Here are the 4 pillars of wealth creation which need a closer look:
- Earning money
- Collecting productive assets
- Choosing debt to support productive assets
- Self-development
Let’s centre our focus on questions like what is wealth and how to create it? People are always interested in making more and more money and becoming wealthy. So based on that we can define wealth as a process to create and deliver value. A wealth creation process is quite a long term which involves continuous personal development to be able to deliver value by creation of resources (Money, investments, and property) over time.
4 Pillars Of Wealth Creation
Pillars Of Wealth Creation #1 – Making Money
As far as you’re building & delivering value, making money makes sense. When you make money, cutting down your expenses can accumulate assets to build wealth. Even if you start from zilch, you can still observe most business tycoons create their wealth.
Pillars Of Wealth Creation #1 – Accumulating Assets
A few major forms of assets which you can accumulate are Real Estate ( Primary residence) as the starting point. The moment you start to make money, you dream of buying your own residence. Whether your residence is a single-family home, condominium, so on and so forth, you still need to have an aspiration.
Time & again we hear how taking a loan can help you get your dream house faster. But of course, it’s not the best thing to do. On the other hand, borrowing money for the right reasons can form the 4 pillars of wealth creation.
Though, there are occasions when you need debt to accumulate assets.
For example, it probably makes sense to take on a mortgage to buy a house. Otherwise, you will have to wait a long time to save up enough to buy your primary residence with cash.
In addition, you may have a fabulous business idea. Again, it may not make sense to wait until you have enough cash to fund your business start-up.
Pillars Of Wealth Creation #3 – Debt
At the same time, you may have a wonderful idea to build upon. Also, it wouldn’t help to wait long to save & then invest money. In this case, a business loan will be good but ones got to be smart about it.
We keep discussing how important monetary resources are. There are many other forms of valuable resources also which do not have a monetary value attached to them. These resources are just as important.
Pillars Of Wealth Creation #4 – Self-Development
Under self-development, health comes first. Of course, it takes health to build wealth.
Along with making money and accumulating assets, maintaining health takes energy, research, good decision making, and networking to mention a few.
You have to put up with good health to be productive. To begin with, eating well, sleep enough and exercise regularly as much as possible. All these activities will create a protective environment and working on health and fitness issues.
