How to Create Wealth

People often get confused as to the real meaning of the term Wealth. The technical definition is the stock of accumulated assets and income. This basically means what one has built up during a set period of time, i.e. life savings, asset portfolio etc. Most people often ask how to create wealth without knowing the full meaning – it isn’t just about a ‘fat bank balance’.

Before learning how to create wealth, you must change your mindset and passionately believe that you can create wealth and become financially free. You must be able to think how the wealthy people think and DO what the wealthy people do. For example, wealthy people strongly believe that there is an abundance of wealth in the world and that you must think BIG; only those with real ambitions and financial targets achieve wealth. These first steps are vital to a sustainable wealthy future, i.e. it’s not simply about making a fortune on a hot stock pick.

To become wealthy and learn how to create wealth, one must understand money and how it is generated – I mean you want to make lots of money, so take some time to understand money and the relevant financial concepts behind it. Now I am not saying you need to go to university and study ‘money’ – you can buy some books, enrol on online courses and attend seminars. For example, how do you expect to grow exponential wealth without knowing the difference between simple and compound interest?

A boring but fundamental task of creating wealth is to organise your finances and create a personal financial plan. I mean how do you hope to create wealth without first forging a plan of action? This is a mistake many people make; they go out there and chase every money making opportunity without attaining any real success ALL because they didn’t take the time to create a plan on how to create wealth.

Your financial plan should be robust and contain a diverse number of income streams; if you cannot think of ways to create multiple income streams, then go online and find out. There are many proven online business models out there that you can tap into; I very much recommend the Internet as a way of making money. Thereafter, learn the skills to make your money grow. There is no point creating multiple income streams and then having the money sit in a bank account – you need to make it grow by buying appreciating assets that will increase your wealth.

Finally, I would advise in finding a mentor/partner to help you in your journey in creating wealth. I was once told that if you want to achieve something, go and find someone who has done what you aspire to do and hence learn from them.

All this will not be possible, without taking massive ACTION. So if you haven’t already got one, go with a proven online business and learn how to create wealth.

Source by Abdi Mohammed