Wealth Building can be defined to be the process of creation of wealth to meet immediate as well as future goals.
There are several ways to create wealth.
– It can be created by investing in debt instruments.
– Gold is the next preferred choice of investment.
– Equity is also another most viable option for building it.
– One can put money into Real Estate for asset creation.
It is important to keep track of Income Expenditure ratio to create it. Income must be always more than expenditure. It is important for a person to keep records of daily expenses. It is easy to spend but hard to save. There are different ways of building it. They are as follows:
Mutual Funds: Mutual funds are a great way to create it.
Simple savings: Savings bank account earns a good interest. It can also be a potent tool to build wealth.
Studies: Accumulation of wealth can be done to plan future studies of children.
Health Expenses: It can be used to meet unforeseen health and medical expenses.
Retirement planning: Wealth management can be done to plan a proper retirement in an efficient manner.
Conclusion: The entire process of building wealth has three phases. The first stage is creation. In this stage, people create wealth. The next stage is accumulation. In this stage people accumulate wealth for later stages of life. In later stage they distribute the wealth they earn. Thus a proper planning can go a long way in creation of wealth and hence building a prosperous and bright future.