The fact about wealth is that it has no respecter of person. Whether you are jobless or employed; rich or poor; a messenger or manager; okada rider or pilot’ teacher or trader; butcher or businessman, you can build your wealth from the scratch, using the time-tested, unfailing principles of wealth building.
The size of your income does not matter. All that matters is knowing and practising the unfailing principles of wealth building.
Below are three principles of wealth building that you can apply to build your own wealth successfully.
1. Determination
Determination is the starting point of wealth building. Determination implies that you resolve that you are going to build your own wealth; that you are ready to give it what it will take; and that you will stop at nothing to ensure that you have that wealth built. The importance of determination cannot be under emphasized. A determined person is a bulldozer. He bulldozes every obstacle that stands his way to success. A determined person is irrepressible. Nothing can hold down a person who is determined to accomplish his goal.
In his book, Success System, Bishop David Oyedepo, founder of Living Faith Church (A.K.A. Winners’ Chapel), narrated the story of a man he knew. This man wanted to start a business, but he had no money. To raise the money, he returned to his village and began tapping palm wine, from where he made some money. He then returned to Lagos and set up his business. Today, the man has over 3, 000 men working for him.
A man who is determined will always find his way out, even in the midst of obstacles.
The first step to take in building your own wealth is to make up your mind that you are going to build your wealth; decide on the action to take; then move swiftly to take that action. Act fast. Tide waits for no one.
2. Save a Part of Your Income Constantly
Whether you are a student, low income earner, or a high income earner, you should cultivate the habit of saving a part of any income that comes your way. You need a separate bank account - savings account – for this. I call it separate because you are not expected to withdraw from this account until it has accumulated and is enough for you to invest in one business or the other.
The amount to save depends on you. You may decide to save 1/10 or 1/5 of your income regularly. Such an amount is not too much as to cause you some imbalance.
Savings is something that is easier said than done, but the fact is, it is not that difficult. One method to adopt in order to ensure you save regularly is to cut down on your expenses.
No matter the amount you earn, if you are not mindful of your spending, your income may not be enough for you. This is because human wants are insatiable and there is constant pressure within us to satisfy these wants. One way to overcome this pressure is to sit down and remove the grain from the chaff – isolate the necessities from the other needs. It is those necessities that you should spend your money buying. Example of necessities here are food; transport fare to work place or to school; house rent; clothing; medical bill, etc. All other needs like fashion, entertainment, luxury items, parties, etc are needs you need to avoid at least for the time being. When you have built your wealth, you will have enough to spend on these items. For now, if you can avoid spending on these, you will have enough to save regularly.
There are other little expenses you need to avoid, like buying of biscuit, chewing gum, minerals (refreshments), cigarette, alcohol, etc. You can do without all these for the time being. You may think the amounts you spend on them are insignificant, but when you sit down and calculate the amount you spend on them within a month and a year, you will be astonished. Benjamin Franklin said:”Beware of little expenses; a small leak will sink a great ship.”
The point here is, cut down on your expenses and you will have enough money to save regularly. Resolve as you are reading now that you will start saving 1/10th or 1/5th of your income regularly. Resolve also that you will not go and withdraw from your savings under any circumstances. Allow the money to accumulate, so that when you feel it is enough to invest in a certain business, you can then withdraw it and invest.
In short, your purpose of running this savings account is so that you have enough money to invest.
3. Invest Constantly
Investment here implies buying assets.
What then are assets?
Asset here does not have the same meaning with what the accountants call “asset.” To the accountant, such things as your private car, furniture, generator, cable television, residential house, etc are assets. But to the investor, they are not assets so far as they take money out of your pocket. However, when these same items are made to generate money into your pocket, they become assets.
So, to the investor, an asset is anything that puts money into your pocket.
Note that an item can be an asset or a liability, depending on what that item does to your pocket. Is it taking money from your pocket? Then it is a liability. Is it putting money into your pocket? Then it is an asset.
The following can be regarded as assets when they are made to generate income: car, house, computer, motorcycle, generator, handset, etc.
Further, there are other forms of assets like owning a business, rendering services, buying of products and selling them, and stock trading. Note that your talent is also an asset. Can you sing, write, play football, do any sport, teach, speak, act (in drama), or have you acquired skill in any field? What are you doing with it? Is your talent lying dormant?
The importance of investment cannot be underemphasized. It is said that 2/3rd of Jesus’ teaching is on finance. Remember Jesus’ teaching on investment – the parable of the talent – in Matt. 25: 14 – 30. Read the passage on your own, but the point to note in respect of the passage is that keeping your money with you or keeping it without investing it (making it to yield income) is a foolish thing to do. I=according to the parable, Jesus said impliedly that if you would not invest your money in any way, at least, keep it in the bank so that it can yield interest. It is a mark of laziness not to invest and not to keep money in the bank to yield interest.
For details on businesses you can start with little or no capital, check our product list on this blog. Just click PRODUCT.
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