This is an introduction and guidance to building your own wealth plan. You are not expected to have any accounting or financial background to use this. Most of the
tools are on this website: Tools, Calculators, and FactFind.
It is possible to create wealth, even on a modest income, and achieve your financial goals. Your starting point is to create a budget, headed ‘Save and Investment’,
for any of the following reasons:
- Paying off debts
- Buying a house
- Starting a business
- Saving for retirement
- Having money for a rainy day
All of which can be achieved by budgeting. Having a budget allows you to live within your means. Start by deciding how much you are worth first before all the others.
Look to see who is in the queue ready to take part of your hard-earned money, limit the amount of debt you incur, set your review dates and look to create your own net
worth programme.
The Key Ingredients to Building Wealth
Building your wealth requires the following ingredients:
- Paying yourself first
- Planning
- Commitment
A lack debt control is the one thing that can cause all plans to spiral downward. If you can take control of your money and avoid borrowing, protecting the wealth that
you have accumulated becomes easier
Note: accumulating wealth is different from just making a big income - it is the key to your financial independence. It gives you control over assets, power to help
shape the corporate and political landscape, and the ability to ensure a prosperous future for your children and their heirs. Rev Jesse L Jackson Sr and Jesse Jackson
Jr Source it’s about money
Learn some of the language of wealth creation
- Assets
- Liabilities
- Savings
- Wealth Creating Assets
- Net Worth
Assets What are assets? Assets are possessions that generally increase in value or provide a return, for example
Think of other things that will gain in value
Reading is the easy part, acting is hard as this requires commitment and application from you.
These are not wealth creating assets because they do not earn money or increase in value. A new car reduces in value the moment it is driven out of the show room. A family
car is a tool that takes you to work and other functions; it is not a wealth creating an asset and will decrease in value over time.