3 Steps to Build Wealth

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If you are willing to work a plan, then here is a basic structure of a wealth plan, designed to help you accumulate wealth in the shortest time possible.

Step 1: Increase Cash-flow

Cash is always King, and increasing your ability to earn is the first and most basic step to building wealth.

So once cash is in, you will need to manage this cash in such a way that less goes out. Various ways to do this is: minimize taxes, reduce/eliminate debt, reduce expenses and finally, follow through on your game plan.

Step 2: Develop Business Income

For those who do not own a business, you can start one as a side hustle or focus on increasing your current earning potential.

As an employee, and a devoted one at that, your game plan would be to increase your skills set or value within the organization. With this, you can have more room to negotiate for higher pay increment.

As a business owner, a savvy one at that, it would be prudent to get more financial/business education to increase your bottom line, implement systems or software to reduce your overall business expenses and increase efficiency in business delivery.

Continuous improvement is essential to ensure you are reaping the most out of your earning potential.

Step 3: Acquire Assets

Assets are a store of wealth. Have you ever found yourself in a dilemma where you have too much idle cash and would like to keep it anywhere but the bank? For many, this is a real problem. Therefore, it is wise to always be on the lookout for where to store up your money in appreciating assets i.e. land, stocks etc. Always keep your money busy working for you.

Bottom Line

Having a personalized game plan will get you far and help put into perspective what is important. For instance, one of the most critical decisions you will have to make is either learn to spend less or learn to earn more – whatever keeps your boat afloat.

Meanwhile, You can click on the following links to read more on building wealth: 

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Irene Makanga
Irene has an MBA in Finance and is an avid businesswoman, passionate about financial literacy.

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