Wealth creation can be defined as the process of creating wealth to meet immediate and future goals.
There are several ways to create wealth.
– It can be created by investing in debt instruments.
– Gold is the next preferred investment option.
– Equity is also another more viable option to build it.
– One can put money in Real Estate for asset building.
It is important to keep track of the relationship between income and expenses to create it. Income should always be more than expenses. It is important for a person to keep records of daily expenses. It’s easy to spend but hard to save. There are different ways to build it. They are the following:
Mutual Funds – Mutual funds are a great way to build it.
Simple Savings: Savings bank account earns good interest. It can also be a powerful tool for building wealth.
Benefits:
Studies: You can accumulate wealth to plan future studies of your children.
Health Expenses: It can be used to meet unforeseen medical and health expenses.
Retirement Planning – Wealth management can be done to plan for a proper retirement efficiently.
Conclusion: The entire wealth creation process has three phases. The first stage is creation. At this stage, people create wealth. The next stage is accumulation. In this stage people accumulate wealth for later stages of life. At a later stage they distribute the wealth they earn. Therefore, proper planning can go a long way towards creating wealth and thus building a prosperous and bright future.