How to Create Wealth with Integrity

Creating wealth can be fun! When you get the principles right, wealth creation can be easy. How to create wealth and guarantee your financial freedom is what this article is all about.

Challenges of creating wealth
If you have had difficulties creating wealth, your in-built pessimism is a major cause. Since, you have resigned yourself to lifelong poverty, how can you create wealth? Replace pessimism with optimism and wealth creation becomes easy.

What percentage of your monthly income do you put aside for savings and investment? This is critical! Most of us have a preference for high consumptive lifestyle. Unless you cultivate the habit of savings and investment, you are destined to a life of struggle.

Personal wealth creation is a medium to long term destination based on vision, strategy and synergy.

Vision
Vision is a clear mental image of the future produced by your imagination. Your vision is your long term destination. Vision helps you to set clear financial goals. In other words, your vision must be translated to measurable goals.

Goals are important ingredients for personal wealth creation. Specific goals are essential to motivate you to action. They are landmarks on the road to success.

Strategy
A strategy is a plan that is intended to achieve a particular purpose. A vision is implemented through strategy. Strategies have to do with the "how to". The route to personal wealth creation is through systematic savings and profitable investment. From my personal experience, I advocate you apply the "80:10:10 principle" in your personal wealth creation.

Eighty percent (80%)
Your bills must not exceed 80 percent of your disposable income (income after tax). Live within 80 percent of your income without taking credit for consumption. Asking someone earning $500 to restrict expenditure to $400 may sound harsh. However, by that conscious step to save and invest, he/she uses the 80 percent (i.e. $400) better than the $500 previously.

Ten percent (10%)
The world does not revolve around you. Use 10 percent of your monthly income for God's work, help others or give to charity.

Ten percent (10%)
It is the last 10 percent in the "80:10:10 principle" that is the secret to wealth creation. Commit 10 percent of all your earnings towards savings and investment. If properly invested, it is the only part of your income that comes back to you. I advise you invest through a unit trust fund to benefit from professional fund management. You must hang in there with systematic additions to your investment long enough for the power of compound interest to work for you.

Synergy
Synergy means working with others. To grow your wealth, you need to work with financial experts. This reduces the likelihood of making wrong investment decisions. Also, you must understand basic elements of financial management. You may attend a financial seminar in this regard. After all, others may advise you but the investment decision is yours to make.

Last words
Vision, strategies and synergies are vital ingredients for personal wealth creation. Live within 80 percent of your earnings, allocate 10 percent to charity and invest the remaining 10 percent consistently.

To your financial independence!