What's Your Wealth Creation Plan?

Commenting on an article I did recently, (why you must join a SACCO while you are young), Rankesh Willy, one of my readers, said something that left me thinking: "Great Stuff you have here! If only the readers could heed your advice. I hope you have a wealth creation plan - don't just join a SACCO for the sake of it but all the same join one NOW!"

'I hope you have a wealth creation plan'. Those were heavy
words indeed. I didn't know where to start eating down this big cake. But why don't we begin by understanding what's a 'Wealth Creation Plan'?

Basically, a wealth creation plan is a plan that focuses mainly at generating passive income by getting the right assets. It's a fundamental tool for anyone interested in wealth matters. However, it's important to note here that, this plan must not dictate how you run your live, but rather you should drive it.

If we may be true to ourselves for a moment, most of us want to double our digits and if possible not lose what we've gathered. Attaining financial freedom won't come overnight. It takes a plan; a good plan for that matter. The good old adage may sum it better: if you fail to plan, you plan to fail.

Aspects of a good Wealth Creation Plan.

Like any plan, it takes a number of well-considered aspects to come up with a wealth creation plan that will deliver. Below are the points you need to consider.

  •  Timeframe, Timeframe, Timeframe.

How much time do you have? This is mostly defined by our age and life goals. In no means will a doctor prescribe the same dosage for a 30-year old and 9-months old. Likewise, a 60-year old should have a different wealth creation plan from a 32-year old. This should go hand in hand with your goals, passion and personality. For instance are you planning to work till retirement? How long is that? Are you marrying next year, or intending to go for full time study? What about your family? Will your partner approve your plan? There's no need creating a plan that will bring down your family.

All these affect the kind of wealth creation plan we'll produce. The most important thing is to be realistic and draw a plan that suits you. We all have our paths to run; it's not wise to thrust yourself into somebody's lane.

  •  Risk: How much are you prepared to take?

Being bold to take risk is not enough. Again, the word is "realistic". You don't want to lose all your long-hard-earned money in the name of investment. Generally, risk is entirely attached to wealthy, so how much you invest depends on how much risk you'd tolerate. Fear can take refuge here. But fear has never been the solution, for the moment you start fearing that's your stagnation start point. There's only one true way to overcome fear and proceed to doing something constructive: Knowledge. Accumulate as much knowledge as possible as far as investment and wealth creation is concerned.

What knowledge does is to empower you to find means of taking least risk to create more, thus reversing the normal rule "more risk more returns". All rich people are conservatives. Why? They have the knowledge; they don't just take any risk. My best reading is Robert T. Kiyosaki's Rich Dad Poor Dad. The question is, how much will you lose without affecting your daily life?

  • Which Asset?

After noting how much time you have and how much you want to invest, then you head to where you want to put your build your wealth. When we here of investment, a good number are likely to go for sharemarket. That's not a bad idea, but it is good to consider the number of assets available and what percent should go where. This is a big topic on its own, and I will do an article just on the same. But to mention, there are current assets, long term assets, deferred and prepaid assets and intangible assets. Do a good research on where to make an investment.

Why is the Wealth creation Plan so important? Because you can't attain your financial goals without it. Let me put it right; you need it to attain your financial freedom. No house built by randomly placing bricks on one another will stand for long. 

It's always good to start earlier. Yes you don't have enough capital, but have a plan. Read more on investment and wealth related materials - and the Bible, it gives you principles to help you not to sway away from God. You've heard the love of money is the root of all evil, why gather the whole world and lose your soul?

Almost everything is going online, which I think is why you're found here now. Engaging yourself and taking time to learn how online business works is vital to your financial freedom. That's why I ask the young people who want extra cash to join sites like iwriter.com, do simple projects and earn some money. It's not just the matter of earning, such efforts will expose you to more valuable information, for instance the process this money undergoes to get into your pocket, or how can you use the same income to purchase goods online? I think we all need this knowledge, lets go for it!

This post won't be complete without thanking Rankesh Willy for triggering a thought that will definitely change my life and the lives of many that will heed to this call. I'll do a number of articles on this topic soon to dig deep into the mine so we can comfortably put this truth into practice. Good lucky!