Ecclesiastes 10:19 Says “. . . but money answereth all things.” How then do we make money to answer all our problems? Having money at your beck and call is the best thing that one could wish for as it enables you to have a sense of fulfilment and entitlement. Wealth is good, let us not make any excuses about it, as it can help ease one’s stress in life – but how do we set out to create wealth rather than wish wealth?

Wealth can best be described as the ownership of valuable resources. It involves the building of assets by means of careful planning and building an investment portfolio usually over a long period of time to achieve an income stream that will ensure the continuation of a satisfactory lifestyle.

Contrary to popular belief, a rise in salary does not necessarily lead to wealth creation and I believe we have around us people who won the lottery or walked into riches overnight, only to lose it all within a few years.

Investing is different from saving because it involves putting your savings to work and accepting an element of risk in exchange for its growth. For this reason, creating wealth or riches requires a detailed and well thought out investment plan. Wealth creation and investment are therefore said to have a positive correlation.

Investment is best defined as acquiring or purchasing an asset or item with the hope of it appreciating in value or generating income at a future date. Financial experts also explain investment to be monetary assets purchased with the idea that the asset will provide income in the future, or will be sold at a higher price for a profit. Hence, Investments can include, among others, the purchase of bonds, stocks, real estate property, and money market instruments.

It is however worth noting that when it comes to wealth creation, there is not a one-cap-fits-all approach, but there are certainly some factors that can help hasten one’s journey to riches.

Acquire Financial Intelligence

Proverbs 6:6 says “Go to the ant, thou sluggard; consider her ways, and be wise.” Investing and Wealth Creation, like any discipline, requires acquiring understanding and knowledge of how it is done. To increase your financial capacity or intelligence to become wealthy is not by chance; it is something that is consciously done by adhering to the principles that govern wealth creation.

Financially successful people take time to study key financial concepts, and acquire knowledge about the dos and don’ts governing wealth creation. Educate yourself by reading basic financial literature be it articles, books, newspapers or magazines and attend seminars or workshops for your own personal development. Be sure to consult professionals and licensed investment advisors of the Securities and Exchange Commission of Ghana when it comes to soliciting for investment advice, making sure you get a second and third opinion, in order not to fall victim to unsuitable and potentially dangerous investments.

Get a Constant Source of Income

Investing and Creating wealth is not done with a single stream of income.  One needs to get a regular and if possible multiple sources of income. This can be achieved by working for one’s self or getting a side business in addition to your full-time employment. Warren Buffet, the American business magnate, investor and philanthropist advises that if you are already working, think of other ways of generating passive incomes. This can be done by analyzing the marketplace around you, to know the needs of the market and developing lasting products and solutions to fill the gap. If you are a tutor, you can think of writing books in your subject areas or organising extra classes around your field of expertise. If you are a broadcasting journalist, think of writing for your local newspaper or an international media outlet. Simply put, get another business that adds to your stream of income.

Have A Saving Culture

It is said that when it comes to Wealth Creation, it is not about how much one earns but how much one can keep that makes all the difference. If you always try to upgrade your lifestyle by changing your wardrobe, buying a new phone, car or house as soon as your income level increases, you will never be able to save as you will always be living in the same vicious circle.

Learning to save is a necessary discipline and the surest keys to a successful foundation of wealth creation. This is because becoming wealthy does not happen overnight.  You have to cultivate the habit to always save, regardless of the size of your income and that’s the truth. As a start, settle on a specific amount of your income to be invested and this should be at least 10% or more of your Net Income. Bearing in mind that small amounts invested periodically also become large Investments over time because of the power of compound interest.

Be Willing to Invest and Take Calculated Risks

What you save must be invested to generate more income. Investment schemes and opportunities abound all over. However, be sure to speak to an expert or a licensed investment advisor. This will give you a head start and better understanding of where and how to invest.

An investment advisor can help you determine your risk profile and appetite to enable you choose investments that best suits your profile. Every investment carries a certain level of risk hence one needs to be guided by his or her risk tolerance depending on one’s age and stage in life. It is worth noting that the higher the risk the higher the return.

Diversify your Investment Portfolios

As the adage goes “don’t put all your eggs (money) in one basket”. Your investment should always be spread across a variety of investment portfolios. A diversified portfolio means that you can potentially take advantage of multiple sources of growth and protect yourself from financial ruin if one of your investments crashes or fails. Make it a key principle to never invest all your money into one business – always have a backup plan as the experts advise.

Never lose Your Principal

As an investor, what you need to understand is that there is no quick fix to financial prosperity. Do not be greedy and learn to take only calculated risks by never gambling with your hard-earned principal.

Taking a calculated risk in an investment venture is ensuring that your principal is guaranteed no matter what. Never spend your principal, but if for any reason you must spend, spend only the interest and never your principal.

The Time to Start is now

In conclusion, there are various keys to investing and wealth creation; however, the most cardinal and highly recommended by people who have been successful at creating time tested wealth is what I have tried to share with you. Following these principles and committing them to practice will help unlock and ignite your passion towards investing and wealth creation. Do not procrastinate and delay your decision to create wealth any further. The time to start Investing and Creating your Wealth is NOW!

The writer is the C.E.O of InvestEye Capital Partners Limited and can be reached on n.*************@in**************.com



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