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 know this web site gives quality dependent articles or reviews and extra data, is there any other web site
which presents these stuff in quality?
You are doing well
Is it possible to redeem all my investment including my capital in a mutual funds
Hi Ahmed, yes you can redeem your entire investment inclusive of your capital given the number of units you have.
The write up on don’t be like the Joneses was quite interesting,I must confess it made a deep impact on me. Not just that, but the entire write up. Thank you for such a wonderful enlightenment,my regards.
Good morning this has opened my eyes
1:47 pm
The write up on don’t be like the Joneses was quite interesting,I must confess it made a deep impact on me. Not just that, but the entire write up. Thank you for such a wonderful enlightenment,my regards.
Plenty sense inside a small write up.. let those who have ears listen. It’s very easy to want to be a Joneses, to join the wannabes…in this era of social media , instant gratification can make you want to impress.. still you have a great choice to make the best decision after reading this write up..
Nice article. You have taught me how save and invest. Thank you cowrywise
Thank you so much cowrywise for this wonderful idea, you just saved from reckless spending and bountiful savings.
I couldn’t ask for more, it’s nice doing business with.
I am looking forward to a beautiful relationship with you this year again.
Very insightful, how can I move further. Need sincere rewarding investment
Pls i downloaded the app but i cant transfer money into the savings
I wanted a piggy banking method where the monies is taken from my account automaticaly
Thank you very much for this educative piece Cowrywise! I learnt that wealth creation is an intentional journey, it requires proper planning and execution
Thank you very much Ope my favorite adviser. I appreciate you. Could you recommend some apps i could use for budgeting?