10 Commandments for Wealth Building!

1. Upskill.

Learning things, moving with the times, keeping in sync with how the world is moving, is one of the best gifts you can give yourself. Constant evolution not only opens-up new channels to earn more, but also creates new ideas, forges new network and expands your social circle.

Skills that relate to your career or business directly can have a direct impact on your income. Several skills that have no direct co-relation can open-up avenues for side hustles, or indirectly bring about more opportunities too. It is also great for your mental health and social health which we rarely give importance to.

2. Take Opinions out of Financial Decisions.

Build a strategy for your Finances. How you want to Earn, Spend, Save and Invest. Having s strategic road map can be an excellent guide especially when things don’t pan out as planned. In the absence of a plan, you can tend to take decisions in a state of mind that might not be conducive and regret it later.

Hire a Coach or Advisor who can help you create this map for you. Make a 10-year plan with enough room for enhancements and redirection. When stuck with a decision, go by the plan you have not the emotion you feel at that point.

Get Emotions and Opinions out of your Money decisions!

3. Being Rich is more important than Looking Rich.

If you are looking up that luxury car or super expensive home by the beach, great going! Make sure it costs you less than 5% of your annual income. Do not dip into your Assets. And do not spend more than 5% of your annual income on the luxury car.

For the home by the beach, if it is a real asset, can appreciate or give you returns or both, or costs a small part of your net worth that’s the key.

Lifestyle is important. However, wealth is created by what you save, invest and grow. It is the worth of your assets minus your liabilities. Wealth is not necessarily what you drive around!

4. Keep Instant Gratification at Bay.

Most temptations pass if you sleep over them. Really. Try it. The next time you are at a Sale or see something you

really don’t need on amazon, don’t buy it out of a temptation. Last minute sales, people pushing you with the last unit in stock, the massive discounts of the market.

When you don’t need a product, don’t want it, and get tempted to shop because it’s on sale, that Item that was 100 now slashed to 80, is not 20 saved for you. Its 80 lost.

5. Net worth over Income.

What is Wealth? How much do you make in a year? Total up all your sources of income and you have your annual income figure.

For how many years will this annual figure be secure? Until retirement. And maybe it will grow year on year too. But income, in its most basic definition, is the amount you earn for the work you do. When you stop working, income stops. (Look up point 8 for exceptions!).

What then is wealth? The Net assets you build. Your Net worth. Your Assets minus your liabilities. Liquid or illiquid, they are available to you for use. The focus during your working years could thus be more on increasing and adding to your net worth consistently. So that when you retire/ stop working, your net worth can sustain your lifestyle!

6. Earn. Invest. Then Spend.

If you are one of those who receives your income and has a beeline of expenses waiting for you. You are not alone. The idea is, if you want to build wealth, always keep one part of your income aside before you start to spend. Maybe into a different account.

Do not touch it unless it’s a matter of life!

7. Evaluate the Risk you can afford to Take. Take it.

We all have a risk threshold based on what our immediate surroundings are and what stage of life we are at. How much you earn, how many dependents you have on you, if and what quantum of assets you already have, your age, what your desired lifestyle is, how agile you are. So many things will affect the way you design your life and financial profile.

If you have less dependents, have assets and have a stable income then you obviously have a bigger risk appetite. The other component is how well you can handle risk and loss. Risk invariably comes with the probability of loss. If you like comfort and if risk stresses you, then despite all the other things being on your side you might want to take less risks. Once you know the risk you can take, go take it. The sweet zone of exponential growth lies there.

8. Create Multiple Streams of Income.

Exception to the rule mentioned in point 5. Multiple sources of income carefully planned and crafted, can

actually bring you income continually long after you have retired. Several sources are not corelated to the work you do on a day-to-day basis. Depending on your skills, interests and the ability to get the right education to implement them, some of the sources could be Investments that reap long term benefits (real estate, long multi bagger stocks, a business model that works on auto pilot and processes etc). Passive Income Products such as creating video recorded resources that can be sold repeatedly, Books, E-Books, music, movies etc. Any product that brings royalties on repeat sales.

9. Financial Education.

Get yourself lessons on finance. Read, surf the internet, talk to people, look at how successful people live and build wealth. Mind your circle of five. Interact with people who are on the ride to wealth building. Join clubs and groups even if virtual, whatever you can afford, and mingle with people who live the life you desire. Learn all you can.

Watch shows that reflect the life you want.

Find the ways that resonate best with you to make your first million – Stocks, Real Estate, Business, a Job, any side hustle – and learn it as much as you can! Work out a plan for yourself, start systematic investments. You do not need to have a financial background to get financial education for practical money management. Don’t let that be a barrier.

10. Get an Advisor.

What do you think would have happened if your parents didn’t give you their hand when you were first learning to walk? Why do you think the best athletes, musicians, performers, politicians and even rulers in the world hire Coaches and Advisors?

Someone having your back helps you to have a bounce pad, a critic and a guide when you are focused on the work. Someone who has been there, done that can help you create winning strategies, work on the execution plan, inspire you, monitor your performance, assess variations and re- strategize. The entire cycle of Performance and Results can be achieved more smoothly with a guide with you. Call them a mentor, coach, advisor or trainer.

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