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.
RELATED:
This was what i really needed honestly, considering my mates and friends were ahead in their finance game, getting properties and having the funds to travel out. i think i have to relax and enjoy my pace but of course with disciple and proper planning.
thank you for this.
Anytime, Ahunna
Ope what’s lockup and notice my investment was lost by 2.85% in a month how do I avoid this in the future.
Thanks for this, it’s really helpful
My biggest challenge is that I always don’t have enough to save at the end of the month. But with this techniques I will try to save one month at a time! Thank you cowrywise!
Awesome! We’re rooting for you. ?
This was really helpful, thanks @Ope
Glad it helped, Israel.
Thanks for reading.
Beautiful presentation here! The entire writeup paints a great picture of what it’s like to visualise something, make calculations, commit to that thing, and strike (and I’m not even much of a sports person) — and it’s great to see (and have experienced) how Cowrywise makes the entire process easier. Great stuff ??
??
The article is timely and its a nice read too.
Many thanks for this piece @ Ope
Lovely write up sis Ope… I am so bad at managing money and I don’t know if you can help me with that. Thank you..
A write up that would have taken you time and effort to make….that makes it heartfelt
Thanks Ope
Thanks for this very much needed and heartfelt advice,really appreciate it,hope to be able to save consistently this year.
Thank you very kindly for putting the prices of advice together in such a detailed manner. Well done Ope.
Would love to marry you Ope,if you are not married
Thanks a bunch for this Ope?
the write up is top notch
Wow!!! These is indeed helpful now I can visualize my plans without too much thinking. Thanks ope
Helpful indeed ☺️