4 Steps to Wealth

1. Make Money: We all know this one. Whether you work a 9 to 6 job, have your own a business, or you are one of the lucky few who won a jackpot / received a sizable inheritance, you cannot build wealth if you do not have money to start with!
   
   It doesn’t matter how much money you have. Money is not wealth. Money has a bad habit of vanishing without notice! Wealth is something you create that does not disappear.
2. Budget: OK, so now that you have cash inflow, you need to plan on how and where you’re going to spend your money. The biggest mistake that people make is they start their plan with “groceries”, “school fees for the kids”, “credit card bills” (which, by the way, is not an expense – what you use your credit card for is the expense!), etc.
   
   While most of these might expenses might be necessities, by the time you reach the bottom of your list, you do not have any of your income allocated to growing your wealth. Plan. Decide for yourself a percentage of your income that you are going to set aside towards growing your wealth. This amount should be the first item on your “spend” list.
   Stick to your budget.
3. Save: Keep enough liquid money set aside – 3 to 6 months’ income worth. You can use this in times of emergencies. If you’ve used it, don’t forget to refill it!
   
4. Invest: There is no direct response to the questions “where do I invest?” or “how much should I invest”. This depends on a couple of things. Your age and your risk taking capabilities (take lesser risks if you’re older, have a family to support, have an not-so-steady / low income job; take greater risks if you’re younger, single and got nothing to lose!).
   
   Honestly, it won’t make a great deal of a difference. What makes a difference is discipline. Invest your money. Review your investment. Move your investment to other investments if it hasn’t been performing to meet your goals. DO NOT move your investment to buy yourself a present or pay your bills!
   What do I mean? The whole of Point#4 in one word: Compound. You WILL see your wealth build. No this is not a “Enter your e-mail and wake up a millionaire”. It takes hard work and time.
   
   Check this out: I’ve done some calculations for you – If you don’t get it, let me know in the comments and I’ll try and put it in a different way (sorry about the horrible formatting!)