3 top tips to accumulating wealth

How do you go about increasing your wealth?

08:50 06 October 2013

Hundreds of tips on how to become rich have been published and delivered but if you’re looking for a good starting point, consider the following as the basic keystones when it comes to increasing your wealth.

1.     Study your expenses

Stop and think before you pay for something your eyes fancy.  You have to determine if this is something you really need to buy right now and to what end?

Most individuals are guilty of impulse buying.  If you compute the amount you have spent on items you purchased just gathering dust in some corner of your house, you will be surprised how much money you could have saved.

2.     Get into the habit of saving. 

When your pay cheque comes, what do you think of doing first?  For most, it will be “Now I can buy this or that.”  For others, paying the bills comes first.  Of course some of the bills are offshoots of some reckless spending such as unbudgeted trips, impulse buying, and careless use of utilities, among others.

What you have to do when you get your pay cheque or earnings from a business, is pay yourself first.  Get 10% out of whatever income you get and save the wealth.  You have to learn to limit your expenses within the 90% left.

3.     Create a fund for emergencies

Emergencies can always happen and if you do not have funds tucked away to respond to emergencies such as illness, car breakdown, house repair, etc.  you will not only be stressed to the max but you may also resort getting emergency loans or getting a cash advance from your credit card which is definitely not a healthy financial practice.

Following the tips above will make you save some of your income and give your wealth a chance to grow steadily.