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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How can I collect my money back once is mature
You sell the units.
Hw can I get my money back…. When I have emergency cases….. cause am in need of it now??
How can I collect my money back once is mature.on mutual benefit
there is a sell option …or am I wrong?
Yes, there is
What a great teaching today Mr. Ope. Thank you sir. Please, i plead for more of these teachings
Well explained, well understood
Thanks for teaching Mr ope
Good and straight to the point.
Teaching is in-born in you; keep it up.
How can I turn my daily savings to investment for Mutual funds
Once they mature, you can transfer them to mutual funds.
I always love your teaching… Can’t wait for another ???
Very much thanks for this update. But please put me to light in a situation you are to contribute a fixed amount to run for let’s say three years and along the line one is not able to make it to the end due to unforseen circumstances after a period of say five months. What will happen to his contribution?
It will keep earning.
What about me that I invest with #1000,and I cash back with dat 1000,which kind of invest is that
This is insightful and i like the pizza explanation thingy. Is mutual fund risk free or there is any chance of default?
Thanks for your kind words. There varying risk levels for mutual funds. On Cowrywise, we have hem categorized from low-risk to high-risk. To find your best fit, we’ll take you through a short risk assessment.
Well understood…cheers?
That’s great to know.
clementogbewe@gmail.com
What is the parcentage interest rate of all the mutual funds?
Lol! May be free investment ,???
Ope ?
Thank you very much for the explanation. It breaks the whole concept down to perfectly understandable bits.
Now, my question is this – high risk mutual fund investments, where the YTD earning is something negative (as sometimes seen on the CowryWise platform), how do people actually make money from those?
I am always happy and expectant to get a mail from you, Ope, because I know I am about to learn something new.
Thank you for teaching with the whole illustration, I understood mutual funds better.
PLEASE I WOULD LIKE YOU TO EXPLAIN CALL UPTION AND HOLD UP TION
How do you know the maturation period
Hi Henry.
Only savings plans on Cowrywise have maturity dates.
You can purchase and sell your investments on Cowrywise at any time.
However, we always advise you to stick to a long-term investment strategy.
Thank you vary much ope for your explanations.
My question is can one deposit dollar In cowrywise stash??????????.??..
Nice of u cowrywises keep it up.
I believe cowrywise is gonna make this country different.
Why did they stop automatic debit oooooooo