3 Golden Steps To Accumulate Wealth

Everyone wants to become rich but out of 100 people only 90 people accumulate wealth and only 2 people are able to maintain wealth for their whole life.

Who does not want to have lavish life, live in a mansion, have luxury cars, modern gadgets  and assets for more than a generation.

Everyone wants to become rich but only a few limited people know the fundamental rule of accumulating wealth and maintain it for generations.

So, After looking for golden rule of becoming millionaire from many books, I have found three common laws which every rich person has followed and follows.

These 3 rules are summarized as follows with examples:

1. Save at least 1/10 of your Income

The secret of accumulating money is to first save from your income. After observing the life of many self made wealthy people. We came to know that they keep aside a little amount of their income and invest it to generate another passive income.

If you save at least 1/10 of your income for 10 years. By the end of 10th year you will have surplus 1 year income which can be used for generating passive income.

For example:

My friend Alex has a yearly income of 10 lakh rupee. Every year he manages to save 1 lakh (1/10th of income). In order to save money he lives a minimalist life. He does not buys expensive clothes & apparels, He does not frequently goes to restaurants and parties. Rather he invests in himself by learning new skills, reading books ,  building muscles & by planning and executing his future.

By the end of the 10th year, he had 10 lakh rupee surplus cash along with knowledge in Investing, Business and Human relationships which he gained by abandoning parties and reading books and learning.

As said by Warren Buffett, Veteran American investor.”  I can buy everything I want with my wealth but not time”. Every rich person understands the importance of time and utilizes it.

For saving money you can budget your income, you can use 60% of income on  needs, 20 % on wants and 10% must be saved.

2. Invest your savings

If you have read the above paragraphs it gives insight on how to accumulate money. But 

who becomes rich simply by saving money? After saving money, if you are able to 

generate passive income from your saved money then the journey of your wealth creation is 

started.

You can generate passive income by invest in following:

• Stocks

• Index funds

• Mutual funds

• Land & property

• Bonds

The earlier you start, The more cash you can accumulate.

Warren Buffett, when he was 11 years old started investing, still he thinks he should have started earlier. So once you have surplus cash don't let your money  rest invest it and make money work for you. 

If you invest 3000 every month in the nifty 50 index from 2020 to 2030 and the annualized return is 17% . you will end up getting 9.5 lakh at the end of 2030. In which 3.6 lakh is invested and 5.86 lakh is interest earned.

Yes it's very simple but not easy. You have to be consistent.
At last I want to say that while making money from money. Consider safety of your saved money first don't fall into the prey of get quick rich schemes and lose all your money.

3. Increase the ability to earn

After creating passive income and having huge money in hand. You must earn big to become and stay rich for generations. For this purpose either you must be CEO of some company or you can start your own company .

Do the thing which you like  to do and know perfectly because when you love the things you are doing there less chances of giving up.

These are few rules to become rich  & There is a lot to learn.

If you follow these steps you will definitely have money in future.

Mention your suggestions in the comment section below and help the others to become rich...