Everything start from zero and getting one from zero is the most difficult step. However, many people manage to do it, include you too. If you are just enter the society or school leaver or fresh graduates, please take notes for it.
Protect Your Capital
If you want to grow your wealth steadily in long term, you must remember this rule, protect your capital. Protect your capital means never loss the initial money they you have invested. If you invest RM5000 in turbulence stock market just as end of 2007, you must learn to protect your capital by cutting loss to prevent further losing which eat up your initial capital.
credit through askmen.com
Inflation=Wealth Biggest Enemy 2
Recently, I pay much concern about inflation as being ROBBER of wealth. Inflation steal your wealth silently and naturally without your concern. Inflation being your biggest enemy on your pathway to get rich slowly.
Price of goods increase double in 12 year times with inflation rate of 6% per year. In other words, your purchasing power decrease half with the same amount of money.
Inflation=Wealth Biggest Enemy
Inflation is our biggest enemy in building wealth. If you neglect the existence of inflation, you definitely end up being poor or middle. If you still wonder what inflation is, you may refer to my previous post.
Inflation is wealth stealer. It steal your money silently and unconsciously. You might not aware of your decreasing purchase power in one or two year times but it make a large different in long term, let say 10 years. 10 years ago, 1 plate of mee in my hometown sold for RM1.30. Now the same plate of mee sold for RM2.30. Nearly double! Price of goods doubled every 12 years with inflation rate 6% per years.
Acquiring Asset To Build Wealth
Acquiring asset to build our wealth is what we need to do, what an smart investor do. From the previous post, we know that we cannot keep currency for long time. Once currency is not moving, it is dead. No value. Currency does not represent our wealth. So what we need to do is transferring our currency to asset. Currency got no value but asset got.
Asset is something you own that can help generate income either now or in the future. This is base on my own definition. Some people might think that car, mobile phone, and house ( not for investment purpose) are assets. But for me, those are liabilities. As long as it cannot help me generate income, I will act them as liabilities. That is my simple and easy understand definition for asset.
Wealth Building Careers
If you dream to drive nice car, live bungalow, travel oversea once a year and etc, 9-5 jobs definitely won’t make you reach your dream. What you need is wealth creation careers not jobs. For me, careers and jobs have different meaning. Jobs refer to work for people and earn money for people while careers refer to work for yourself and earn money for yourself. Careers are sort of your own business.
From my observation, for a youngster like fresh graduate or school leaver after spm, the better careers to build wealth in shortest time are joining insurance and MLM aka multi level marketing.
