Let’s Talk About Growing Wealth

Wealth is an interesting thing; it can seem sometimes like it is extremely difficult to grow wealth. However, that isn’t the case at all. Growing wealth is not the herculean task it appears to be, once you develop certain habits.

Instead of spending unexpected cash, save it

Growing wealth starts from little actions like what you do with unexpected cash. For example, what do you do with your bonus, monetary gifts. While it is extremely tempting to buy that handbag or PS5 console you’ve had your eye on, our tip is to pretend that extra money, doesn’t exist and invest it instead.

Develop the habit of putting any surprise cash, even if it’s just that 1000 naira you found in your pocket, to work. You can add it to your emergency fund or an investment account. It’ll add up.

Track your spending

You can’t build wealth if more money is leaving your wallet than coming in. To ensure you’re earning more than you’re spending, track your daily expenses. It may seem like a difficult task at first but after doing it consistently for a while, you will develop a routine. If tracking finances and budgeting aren’t your strength, there are a handful of apps that will do this for you. You can also use a spreadsheet on your computer or simply record your everyday purchases in a notebook or on your phone.

Work on earning passive income

Saving more money and cutting costs might seem like the only way to grow wealth. While this is a fundamental step especially if you are just starting out, there’s only so much you can cut in costs. If you find that you’ve already cut your costs down to the bare minimum, you should look into ways to increase your income. You can do this by either increasing your earned or passive income. Earned income comes from what you “do for a living” you can increase your earning here by upskilling while passive income is derived from making investments.