7 Basic Tips for Generating Wealth

By | October 28, 2020

   There are many reasons why someone might want to become wealthy. Some clearly want to live in the lap of luxury, while others just want to travel around the world without worrying about running out of money. Many would like to ensure a secure retirement, so they can live out their years doing the things they enjoy. Whatever your reasons might be, there’s no reason to think it’s out of reach or impossible.

   Note that I wrote this article with people from all walks of life in mind. Although this site is primarily geared toward entrepreneurs, there are many aspiring entrepreneurs who are also still employees. Wealth generation is one of the primary drivers of entrepreneurship, but it’s also worth mentioning that some would rather grow their wealth by trading stocks or real estate. With that in mind, here are seven essential tips for generating wealth.

1. Write Down Your Goals

   Successful people know they have to write down their goals in order to get them accomplished. Anyone can get sidetracked and unless you have constant reminders of what you’re setting out to do, distractions will carry you in different directions. You must be clear about your goals as well, particularly if they involve generating a specific income. If you want to make $100,000 this year, write that exact figure down and put it someplace where you can see it, so you’ll have something specific to shoot for and your mind will remain focused on the prize.

2. Contribute the Maximum Amount to Your 401(K) Plan

   Chances are, your salary will have less to do with the amount of wealth you accumulate than how much of it you invest over the long term. For example, if you manage to achieve that $100,000 salary, you’d be a millionaire in 10 years if you didn’t spend a dime of it; but that’s not going to happen. If you’re living a six-figure lifestyle to match your six-figure income, you might as well be living paycheck-to-paycheck like others making half as much. How much can you really live on? If you contribute the maximum to your retirement account and your employer is matching it, you’ll generate significant wealth much sooner. Your goal should be to become more of an investor and less of a consumer.

3. Pay Off Your Credit Card Balances

   Large amounts of debt can ruin any chance of becoming wealthy. If you’re living within your means, you wouldn’t be using credit cards to purchase anything you can afford to pay for in cash. If you charge $5,000 on a credit card with a 15-percent annual percentage rate (APR) and pay only the minimum monthly payment of $115, it’ll take you a whopping 64 months to pay it off. Along the way, you will have paid $2,258.89 in interest, which is almost half the original balance. If you’re going to carry a balance at all, make sure it’s one you can pay off quickly. Don’t allow all that interest to add up while continuing to make additional purchases.

4. Work Smarter AND Harder

   Generating wealth requires working both harder and smarter than everyone else. This could mean working more hours, finding a second job or opening a business of your own on the side (if you’re not already self-employed). Working smarter will give you an edge over others. If you can find a way to either automate some of your workload or delegate it to someone else, you’ll free yourself up to chase down other opportunities.

5. Create Multiple Sources of Income

   One of the best things you can do to generate wealth is to open up multiple streams of income. Whether you’re an employee or a business owner, instability can throw a monkey wrench into your plans and slow down your progress. Certain situations could potentially bring it to a grinding halt. Examples of additional streams of income include online stores, network marketing and real estate ventures that provide passive income. If you have a hobby that can be monetized in some way (such as photography, writing or music), that money can be invested for further growth.

6. Spend Time Around Wealthy People

   To put it bluntly, you’re not going to learn the habits of the rich by hanging out with people who blow most of their money in an attempt to appear wealthy. Those individuals will probably never accumulate significant wealth in their lifetimes, and many of the fancy status symbols they hide behind are purchased on credit. If they were to lose their jobs, they might not be able to sustain themselves for long without filing for bankruptcy. Wealthy people just have different habits and views regarding money. If you know some wealthy people or can find some on your favorite social media sites, you’ll begin to notice these things, and they’re bound to rub off on you.

7. Track Your Progress and Be Patient

   No empire was ever built in a day and yours probably won’t be, either. If you’re writing down your goals and looking at them frequently, you should be able to see how much progress you’re making and whether any changes need to be made. Did you make more this year than last year? If not, why not? How are your investments doing? Does your goal of generating wealth feel any closer or is there something you’ve been neglecting to do that might make a difference? As long as you’re doing everything in your power to make your goal a reality, there’s no need to be impatient with the process.  It will come in due time.

   Everyone needs money, whether they choose to admit it or not. The best way to deal with it is to accumulate enough wealth to live comfortably in your later years. Although there’s no guarantee the tips above will lead you directly to prosperity, it’s safe to say that if you don’t employ these methods, the resulting lack of money will always control you.

16 thoughts on “7 Basic Tips for Generating Wealth

  1. Feji ben

    Hello there,thanks for this tips as I know it would be of great help to the public as it has been of help to me.this is the kind of information that everyone needs to hear as generating wealth is no easy task and also it’s not by strength but by knowledge if not weightlifters would have been the richest men on earth…..I would definitely put this tips to work.

    Reply
    1. Mark Abbott Post author

      Absolutely! I agree that everyone should know know these things, as they would benefit people from all walks of life. Thanks for stopping by, my friend!

      Mark

      Reply
  2. Paolo

    Hi! I have found these tips very useful. But there are two that have kept me thinking for a while. Creating multiple sources of income is a must. I learnt I can not rely solely on my salary and seeking online streams of income can be done by any of us. And the other point is tracking our progress and being patient. We need to ask ourselves questions at the end of each trimester, semester and year concerning our progress.

    Reply
    1. Mark Abbott Post author

      Absolutely, Paolo! Relying on just a salary is the worst way to go. Unfortunately, that’s the path so many fall into. Thanks for stopping by!

      Mark

      Reply
  3. MacCurdy Farm

    Great tips!  I have been following some already such as paying off my credit card debt and thereby lowering my liabilities.  I am interested in how one would go about generating passive income through a real estate venture in Canada when one doesn’t have much money to invest.  A great book that would stand by your principles is Rich Dad, Poor Dad.  Thanks for the tips!

    Reply
    1. Mark Abbott Post author

      Yes, I’m familiar with Rich Dad, Poor Dad. I read it when it was new, back in the nineties. I was already interested in these things, but not quite ready to apply what I was learning. As far as real estate investing in Canada, I don’t know of any books written specifically for that market. But if it were me, I’d consider finding a partner and going in together for the first property. That will get your foot in the door and provide you something you can use toward your next one. Either way, best of luck to you and thanks for stopping by!

      Mark

      Reply
  4. Jenny Hennig

    Hi Mark,

    I love all of these tips!  I don’t know anyone that doesn’t want to have more money and be wealthy.  All of these tips you mentioned are important, writing down your goals is a big one because if it’s on paper chances are you will work towards that goal faster instead of forgetting about it.

    Surrounding yourself with people that are wealthy or successful is not only a good motivator, but it allows you to gain some insight into how they have accomplished their wealth.

    I am self-employed, and I find my biggest issue is being patient.  In the beginning, you really have to put in a lot of work and time, and most of the time you don’t see any money.

    Thanks for sharing these tips, they are very helpful for anyone wanting to generate wealth.

    Reply
    1. Mark Abbott Post author

      Thanks, Jenny! Glad you found it insightful and thanks for stopping by!

      Mark

      Reply
  5. Md. Asraful Islam

    Thank you so much for sharing with us an interesting and excellent article. The principle content of this article is 7 Basic Tips for Generating Wealth. It is really pretty that you have demonstrated this topic so well in your article. I have learned a lot by reading your article and gained a lot of cognition about it. Of the points mentioned in your article, I like to Create Multiple Sources of Income. I am currently not just sitting in one place to earn income from various sources like Affiliate Marketing, Content Writing and I am also earning from Freelance Marketplace.
    I’ve read and enjoyed your article and I’d like to share it with my friends by posting it in the Facebook community so everyone knows about your article and gets to hear about it.

    Reply
    1. Mark Abbott Post author

      Absolutely, my friend! Feel free to share! Thanks for stopping by!

      Mark

      Reply
  6. mahadihassan1

    One of the instructive and significant posts you have imparted to us. I simply need to reveal to you that your thoughts and your article are critical for me since I have increased a ton of information from here. Everybody needs to get effective and increment their riches. I am likewise similar to that. office leave when I start any sort of business, unquestionably I will adhere to your guidelines with the goal that I can show signs of improvement result.

    At last, I simply need to give you thanks again for such an intriguing article and open offer this one with my closer individuals.

    Reply
    1. Mark Abbott Post author

      Thank you, my friend! Glad you found value in it. Best wishes on your business endeavors!

      Mark

      Reply
  7. Shanta Rahman

    Thank you so much for giving us this wonderful article. Your article is really very informative and I have gained a lot of knowledge which is very helpful to me .I have to use basic tips to create multiple sources of income .I have certainly worked with the right goals to execute my plan .I also paid the credit card balance .And I think I should work smart and hard and I did .I also got some additional tips through your article. And, of course, you deserve the praise for giving so many useful tips.

    I will definitely be reaching out your article to my friends and recommend them to follow these tips and will definitely share with you their new experience.Can I share your article on my social media?

    Reply
    1. Mark Abbott Post author

      Absolutely, Shanta! Feel free to share wherever you like. Thanks for stopping by!

      Mark

      Reply
  8. Jackie

    These are all very wonderful tips that I think I should use for myself too. I am very sure that this is some of the things that many of those that have so much welath today did so as to acquire what they have now. I’m definitely going to use this in my routine and I’ll share it with my friends too.

    Reply
    1. Mark Abbott Post author

      Thanks, Jackie! Glad you could relate and enjoyed it. Yes, definitely feel free to share!

      Mark

      Reply

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