In a country like Nigeria, with a consistently poor economy, without infrastructures to help businesses thrive, sustainably building wealth may be an arduous task.
However, it is achievable.
Because everybody is first and foremost trying to survive, the tendency to want to invest may become an insensitive topic. This is so because of the poor economic state of the nation.
Nevertheless, those who have understanding know that the road to sustainable wealth creation starts from building investments little by little.
This is something experts call the law of process.
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Wealth creation is what enables people to become rich.
The reason some persons find themselves poor is because they don’t know how to build wealth through investing or investments.
A good way to explain this is that ‘the labour of a fool wearies him because he does not know how to get to the city’.
In this article, we shall learn 5 solid ways to sustainably build wealth.
5 Ways To Sustainably Build Wealth
1. Invest Your Money
Investing means putting your money or resources into something you expect to make profit from or something you intend to get other positive benefit from.
An individual can invest by buying assets that are expected to increase in value over time, which can grow the amount of money invested.
Some people like to save their money in banks. Saving is smart, because you need something to fall back on when necessary. But instead of saving your money, you can invest it in something that will generate more money in the future.
Look for shares to buy, assets to purchase or viable businesses that can be invested which will yield positive return on investment.
2. Income Generation
To make money there must be a source of income generation whether active or passive.
A person who is employed generates income from the salary obtained from the employment, that can be a source of income.
While such individual gets paid on the job, the income generated can be invested in a small business by the side to generate another level income.
You see, people who are rich work consistently and get paid.
Income generation becomes another pillar of Wealth Building.
Once income is consistent and you begin to apply the first recommendation above, you are on your way to becoming rich.
3. Asset Investing
Some people in our society today, have invested so much in asset.
You can meet a person who doesn’t have any cash at hand but when needs come he can sells his/her assets and have a lot of money.
Assets investment is another pillar of Wealth Building.
Some areas to look at are land and property.
4. Asset Protection.
Asset protection is a set of legal techniques employed in protecting assets of individuals and business entities from civil money judgments.
The goal of asset protection is to insulate assets from claims of creditors.
After investing in assets, there is need to protect them from external factors.
Protecting your assets will help you ensure you realise maximum benefits.
Indeed, this is another important feature in wealth building.
5. Capital Allocation.
Capital allocation describes how an individual or a company raises and spends money.
Money, plays a central role in value creation, as such successful capital allocation creates lasting value for all stakeholders.
Some people may decide to sell an asset and invest the money in business, or close the business and buy a beneficial asset.
This is a good decision as far as wealth building is concerned.