While there is no one rule for wealth creation, to build wealth one must follow a certain level of discipline. Here are the three secret disciplines you need to master to grow your wealth.
- Save and Invest
- Delay gratification
- Ignore the Joneses
1. Discipline to Save & Invest
We are all limited by the number of years we have to be able to run around actively. A twenty-year-old today probably has another 20–30 years of active working life left. This is to say, as we age, the physical labour we can offer reduces. This period is when we can set the foundation of our wealth.
The moment you have decided to create your wealth then you should take action towards making it happen by starting a dedicated savings account. Irrespective of the amount you decide to save periodically, your savings should be automated to make it easier to achieve discipline and consistency. You should also invest your money in opportunities like mutual funds and other investments.
Now in picking a savings account, it is important to find one with zero or minimal fees and with considerable returns. Your saved-up cash should not sit in a bank, it should work for you to generate returns. For instance, if you saved up 1M Naira in 2017, at 10% interest per annum and one year later, the money should have increased by itself to 1.1M Naira. This is how you grow wealth, steadily. Try out Cowrywise today.
2. Discipline to delay gratification.
If you look around you, you’ll probably notice that we are surrounded by advertisements that are aimed at making us spend money on things we do not need. The new iPhone, the new cars, the new designer labels, the new shoes…the list is endless.
If you have a goal of becoming wealthy someday, you should learn to postpone buying these things until you have well enough. This is not to say you shouldn’t enjoy some of life’s little luxuries. The point here is that you could always delay buying luxuries until you achieve your important money goals. You should learn to live way below your income.
Or better, ask these questions: Do I need this item to survive? Does this item bring me additional cash? Am I buying this to impress my friends?
3. Discipline to ignore the Joneses.
The Joneses are all around us. They are those families and friends who spend money just to impress others. Our neighbours with all the flashy toys, our friends who buy the latest gadgets to show off but are barely able to pay their rent.
To be like the Joneses is to spend your little savings on what the Joneses are buying. This never-ending race to be like the Joneses always leads us to make poor financial decisions that are detrimental to wealth building.
When making any purchasing decision, it is important to ensure we‘re not trying to live life as dictated by others. We should learn to spend money wisely.
What is the fastest way to build wealth?
Spend less than you earn. Live below your means. Save the remaining and invest where it grows steadily over time. That is how you build wealth fast. However, many people never really build wealth as they keep spending as much as they earn. Then, later in life, they depend on a pension or their children to support them in retirement.
How do you create wealth from nothing?
- Educate yourself. Understand how to build wealth.
- Liquidate assets you don’t need anymore.
- Avoid unnecessary debts and wasteful spending.
- Automate your savings
- Invest
- Share your financial knowledge with your circle. What is better than one wealthy person? Wealthy people.
Watch this video on how to build wealth with a 9 to 5:
We will like to hear from you if you have identified additional disciplines required for wealth creation!
Get started on your journey to wealth creation with Cowrywise now.
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I really want to control my finances. I envisage that I have a great tendency of making money and mismanaging funds. Most times I run out of money before the month ends and I feel terrible about it.
Hi Sonia.
Thanks for your vulnerability.
We provide a lot of financial education guides on our blog that can help you better control your finances.
Take it step by step and you’ll do better in now time!
What about school fees, health , charity and insurance.
school fees, insurance, and health can be placed in that friend’s wedding column as talked about in the article, t its all about understanding the main idea, looking within yourself where does this item fall, it’s about been creative and manageable with your money, i.e how long money stays in our hand using it effectively.
thanks a lot,Ope.really helpful,sometimes we outline the fixed and forget the discretionary ,and wonder how alll the money disappeared .This is very insightful
I look forward to more articles from you guys, random articles on various life topics. I love the active voice you used in writing and that sacarsm part too?
Thank you! We look forward to having you back here too ?
This is really amazing and educating! Keep it up and thank you so much for THIS ARTICLE ?
Our pleasure ?
Hello Ope,
This piece is quite insightful and helpful. Thank you. I Read the part where you advised to not document budget on a book as one can lose the book. Can you recommend an app on playstore one can use?
Yes. I’m seconding this comment. I believe an accounting application can help. I actually document my expenses daily but combining them into a general heading is a big task.
Please help us, Ope.
Hi Glow, I can’t recommend any tool off the top of my head right now, but creating a simple Google sheet or excel file for your budgeting can work.
I have a challenge, am the one catering for the house so most times I run into debts because expenses are higher than income . please how do I work on this.
thanks
Okay, Ope, you got me on with this one! ?
I know I make a lot of money as a full-stack digital marketer, but after some time, I’m broke and I’m wondering how come? As you said, I’m wondering “where did all the money go to?”
Sha, this post is very helpful and I’ve just downloaded this app I want to make use of in listing out the entire process… but quick ??
Which app or tool would you recommend for proper budgeting and evaluation?
Regards,
Sam
Hey Sam, happy to hear you found this helpful! ?
For the tool to help with budgeting, I highly recommend that you get down to do the “dirty work” first by yourself. Create a sheet on Google Sheets or Excel to input and track your spending to give you a raw idea, and then you can use other tools for lighter budgeting work based on the idea you now have from your sheet.
Hi Glow
You can download money manager on playstore, that’s what I use. There are others there too
I spend close to 38,000 only
Hi Sam,
I found it fascinating when I had to keep track of my sister’s account, but tracking my own expenses or developing a personal budget appears to be an impossible feat.
I mean… I don’t have a stable source of income yet so it seems almost hard to do but then after going through your write up I wrote a few ways in which I get money and am hoping I’d be able to get an hang of it soon.
Thanks for the detailed explanation.
Ope rather not Sam, sorry.
Wow! This is great, learnt a lot
Thank you so much for sharing this, Ope.
I have a question though. How can I budget as a student?
Because it seems like I can’t apply the whole concept of budgeting in my life at the moment.
I mean, I am a student, I don’t have a fixed source of income; I receive allowance from my parent and sometimes from relatives. I also do not work and I have no investments.
Sometimes, I feel like financial plans and budgeting is just not for me, even though I’m quite interested in them.
Like when I even receive my allowance, the rate at which the money finishes fast, makes me ask myself, “How?” “Where did all the money go to?” and “What did I spend the money on?”
I want to know how to track my expenses, save effectively and if possible invest and then build a financial plan, even as a student but I don’t know how to go about it neither do I know what to do.
So, if there’s any advice you could give me, please do. I’m very ready to learn.
Also, thank you so much for your financial lessons. I am always happy when I see your blog updates in my email. Thank you!?
This is very insightful and educative. I will make a do with this tips immediately. Thanks immensely Ope.
This is helpful I learnt a lot as a young graduate budget helps in build Future occurrences coming in the future also helps to pridict a lot of plan that u ought to achieve
Thanks Ope for this rich enlightenment.
But I got to ask you a question.
What if you don’t get an income per say but, a kind of allowance that’s not stable that you’ll have to ask before its been given to you. How then do you plan a budget given such instance?
Thanks for this wonderful post of yours.It is more encouraging.
Dear Ope,
Thanks for this insightful write up. I am definitely practicing this starting now. This is just what I needed to hear at this time. Thanks again
Really amazing thanks alot for this
I need withdraw
Thank for this wonderful post of yours. It is more encourage
I need withdraw
This article came in on time. Am guilty of many of the bad money management stated in the article. Not withstanding, it is not too late to start. I will be better equipped for the remaining part of the year and next year as well. Thanks Ope
Alisabiu744@gmail.com
This article came in on time. Am guilty of many of the bad money management stated in the article. Not withstanding, it is not too late to start. I will be better equipped for the remaining part of the year and next year as well. Thanks Ope
Ope thanks for this powerful awareness, pls if the is an app I can use for something like this let me know. I should start taking records this month
Mohammed
How can I do this
Thanks very much Ope. I always enjoy your post they are enlightening.Talking about budgeting how can one who’s money doesn’t come in bulk monthly go about making and achieving his or her budget.
I can control my financial status on my own. Because I really feel to be financially independent, on the basis of personal interest, and growth. Thank you so much.
Hi Ope,
Thanks for the blog,
I am currently working and I don’t earn enough. Also, I have to settle bills at home and help the family.
I find it hard to save, any advice on this?
Thanks for this piece, I really needed it to start my next month.✨
Thank you so much Ope. We shall do this
Cowrywise has really helped me to everyone more and spend less
I wish it will not crash
Thanks so much. This is an eye opener. I always wondered why I’m left with nothing at the end of the week/month/year after making so much money. Please, do cowrywise have a budgeting app that could be helpful.? It’s important