3 simple steps that works for YouSantosh Joseph
The Construction of a Millionaire
Who wants to be a millionaire? Who doesn’t? But, not everyone gets a chance to participate in the famous game show and go on to successfully answer the final question worth a million dollars. However if you follow these three simple steps then you can slowly but surely build up your wealth and in the process become a millionaire. Building your wealth and constructing your dream house have much in common. It takes an immense amount of time, a great deal of effort and dedication, and most importantly having the right framework of support- both in terms of an adept architect to design the layout as well as a trusted builder to execute the plan.
Apt blueprint for wealth creation
It is essential to have the right perspective and strategy for your money and savings to work for you in creating and managing your wealth. The first step in the process of building your dream house is drawing out a master plan or blueprint of the structure that will shape up into the abode you aspire to live in and make your home. Likewise, it is fundamental to draw out a blueprint for your income, savings and what you intend to do with your savings.
What are the essentials in assessing the requirements for your dream house? First we establish, the number of people living in the house, their specific likes and dislikes and other needs of the family. Then we gauge the local weather conditions, the location and size of the land available to build on, and the various legal requirements. Finally we consider the budget, or where the funds would come from to convert architectural visions into concrete reality. Similarly, while investing we need to thoroughly appraise our situation in terms of current income and wealth holdings. For those who are at the outset of their wealth creation, their income and expenses have to be clearly examined and estimated.
The salary you earn and increases in income as you grow in your career alone won't make you rich and wealthy. What you do with the income and how you make use of your savings will determine how significantly your wealth grows. Therefore, it is crucial to have an accurate idea of how much money you can spare after your various living and other expenses and how much you can save. Can you squeeze more ‘rainy day funds’ out of your income or stretch the figurative dollar further? Do you really need to upgrade your phone to the latest model out there in the market or purchase a home theatre with the extra large screen? Would it not be possible to postpone momentary short term indulgences for the sake of longer term benefits and prosperity?
In short, having a suitable and apt strategy for your investments is like having a blueprint designed by a master architect. The creator not only makes the most of the allotted space and terrain of the land, but also customizes the construction to appeal to your artistic senses. Correspondingly, with your money a sound approach to investing is built on a thorough understanding of your individual risk profile, the various investment avenues available for you to capitalise on and judicious asset allocation based on this reliable master plan.
Methodical execution for wealth generation
Once you have the blue print for your house or in this case your money and investments ready, the next step naturally is executing the plan. While this stage is the most challenging and gruelling task in the process of building your wealth, one should be dedicated and committed for the long haul. A superior builder will work to optimise resource utilisation, without using sub-standard material and avoiding short cuts to reduce costs. In a like manner, your investment plan must be executed methodically with an eye for optimising returns while avoiding unnecessary risks. A trusted investment expert with accurate knowledge of the markets and financial acumen will be an ideal guide to help you wade through these intricacies of investing and creating wealth. Thus in constructing a solid and dependable investment portfolio, one must be thrifty in implementing the plan, while also being flexible enough to take advantage of the developments in the financial markets.
Effective management for wealth preservation
Once the house is constructed and occupied, with wear and tear, one eventually needs to tackle the ravages of time. While good maintenance will reduce its negative effects to a large extent, refurbishment and renovation will help fix the root problems. In a similar manner, one’s investment portfolio too must be periodically reviewed to root out the underperformers. However, it needs to be iterated that a well-planned house or investment portfolio will require lesser maintenance and lesser frequency of reviews. Thus effective maintenance and management of your investments is imperative for the generation and preservation of your wealth. Furthermore, it cannot be less emphasised regarding the need for a trusted and knowledgeable adviser to partner you in your wealth creation. Keep these three simple steps in mind and they will positively help you become a millionaire, while also building your legacy, your ultimate endowment for the future generations.