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Formula of Wealth Creation
Wealth Creation needs no luck, no genius & is amazingly simple to achieve. Four separate yet interconnected ideas need to come together to make it possible.
WEALTH = (Cash Flows) * (Financial Habits) * (Consistency) * (Time)
Positive Cash Flows
Making more than you spend creates positive cash flows. Investment of such positive cash flow leading to virtuous cycle of additional cash flow & investment, fulfils the essential condition of wealth creation. The twin themes of earning more & spending less are not mutually exclusive but need very different mindsets.
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Formula of Wealth Creation
It is deeply embedded in the public consciousness that wealth is an outcome of high income. While it may be extremely difficult for those at the bottom of the pyramid to create wealth, for others it is an amazingly simple process that needs no luck or genius. Wealth gets created with coming together of four inter-connected ideas. Interestingly, this process may be easy for a person with low income or it could get difficult for one with high income. The reason why…
Keep readingYou won’t get wealthy, unless…
Wealth Creation is no rocket science. It is possible for anybody & everybody – irrespective of how little resources one is starting out with. Yet, very few succeed at what is simple & achievable. The abysmally low success rate of wealth creation is not without reason. Desire for wealth is not getting followed up by action necessary to fulfil it. The disconnect needs to be addressed. The solution is to emphasize this ultimate financial goal in each of the numerous daily decisions…
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