Many people have an idea of what wealth looks like, but they lack a plan on how to become wealthy. The good news is that there are many ways to become wealthy, but they all share one thing in common. They all have a pillar of wealth. In this article, we will be exploring four pillars of wealth and how you can use them to reach your own definition of wealth.
The first pillar of wealth is knowledge
The first pillar of wealth is knowledge. It is important to have a basic understanding of financial concepts and how money is earned. If you don’t know how to earn, save, and spend money, you won’t be able to build wealth. It is as simple as that. You should also try to learn about how the economy works and all the different types of investments that are available. In order to build wealth, you must first learn how to earn (skills), save, and spend your money. You must also do your research on how the economy works and all the different types of investments that are available. There is a saying: “Invest in yourself BEFORE you invest your money.” It is good advice. You do not have to be an economist, but understanding the basics of the economy will help a lot.
The second pillar of wealth is having a plan
The second pillar of wealth is having a plan. It’s important to have a plan in place that will help you to achieve your goals. It can be as simple as a 5-year plan or as complex as a 20-year plan. Having a plan will help you to know what you need to do to achieve your desired goals (wealth). It will also help you to stay on track with your plan and keep you motivated through tough times.
A plan assumes a goal. What are your financial goals? Without a goal you will never know what you have to do to achieve. Live by design. Build your wealth by design. Too many people end up poor because they have no or very vague financial goals. All successful people that I know have goals and strive to achieve their goals.
The third pillar of wealth is building a savings/investment portfolio
The third pillar of wealth is building a savings/investment portfolio. This is a very important pillar of wealth. It is important to save and invest your money so you can grow your money and build wealth. It is important to have a savings account and to invest in property, stocks, bonds, and other investments. It is also important to put away money in a tax-advantaged account, such as a retirement annuity. These are just a few of the ways to build a savings/investment portfolio.
Many people never start, because they do not have “enough money.” Here are two stories,
The first story just illustrates my point. The tap to the washing machine drips when open. Not much. It is a slow drop. I have a 3-litre bucket underneath the tap to catch the water. One dripping drop at a time. Almost unseen – it always amazes me how quickly the bucket fills. And every time it reminds me of the next story.
I took out a retirement annuity in 1998. The contribution was R150 per month. After five years, I lost my job and made the policy paid up. In 2021 I received an update on the policy. The value was R66 000. That is not a lot of money, but then I did not contribute a lot of money.
Small amounts of money add up when combined with the force of compounding interest.
The fourth pillar of wealth is helping others
I recently watched a video of Elon Musk addressing a graduation ceremony. He said he does not do what he does to make money. He does it to make the world a better place. He solves problems. And the money follows.
Zig Ziglar said: “The more people you help to get what they want, the more you will get what you want.”
Have you ever considered how many jobs wealthy people create? They create jobs in their own businesses. They create jobs for people who build cars, They support restaurants, hotels, and all the industries where they spend money.
Building wealth is not a zero sum game. If you build your wealth, you are not “stealing” from somebody else. The opposite is true. The wealthier you are, the more people will have the opportunity to grow wealthy because of you. It is the nature of a normal capitalistic economy. It is very logical, if you understand the basics of the economy.
But wealthy people also help others in terms of charity. They do it in many ways that we often do not even know of. I would never have been where I am, if it was not for a wealthy man (and men) who gave my dad a leg up when he started his own business. My own business would never be where it is without a wealthy person giving me an opportunity. That is one form of help.
There is also charitable foundations that help organizations. Volunteering time is a benefit that mostly wealthy people can do.
Wealth is having money and time – wealth is freedom of choice and time.
Building wealth is something many people dream of and few achieve. The people that do achieve the status of “wealthy” build their wealth by design. They have a dream, a goal and a plan to reach their goals. That makes it easy to learn about finances and the economy. It is an interest, and it helps them achieve the goal. The goal makes it easier to live with deferred gratification.
Because of the goal and the ability to defer gratification, they manage to save and invest. Even if it is difficult and they do not have much to save and invest, they do it in a disciplined manner.
Helping others, solving problems is a sure way to make money to build wealth. And helping others. There is something in the universe that returns or good deeds to us.
What do you think? What pillars would you add? Comment below
This is NOT financial advice. Before you make changes to your financial portfolio, please talk to a financial advisor.