How To Build Good Fortune: Sometimes, it feels like the wealthy have secrets that they only share amongst themselves. Secrets about how to grow your business, how to create generational wealth, how to make money work for you.
But here’s my secret: these secrets are more accessible than you think. You too can follow the steps the rich follow and find yourself at the head of a multi-million dollar company.
Therefore, in today’s Waptutors article, I’ll be talking about the 12 steps to build good fortune. So, without further delay, let’s jump right in.
What are the steps to build good fortune in 2022?
The steps to build good fortune are explained below with full details. I list them in a descending order.
12. Start your own business and eventually sell it
Whatever your business idea is: cleaning service, hair salon, consulting firm. There will be a lot of hard work involved in the beginning. These first steps are where a lot of enterprises fail; they can’t hold their own against tough times. This is where you will stand out.
Start your business, push through, and then when it is finally making millions, sell it. This is a major secret in the business world. The money that most CEO’s enjoy comes from some other company who has bought their business. If you can push through, the rewards are bountiful.
11. Own the roof over your head
If you are paying rent, you are helping someone else build their bank balance. Now don’t get me wrong, renting for a small period of time is not a bad thing. If it’s a long-term thing, however, you may have to face the facts: you aren’t going to be wealthy any time soon.
Even if it means living below your means, you should aim to buy a house. Meet with a mortgage broker to discuss your options. You might now have enough money for a down payment right now, but having this goal in mind means that you can actively work towards it.
10. Meticulously track expenses
Do you know what breaks your bank balance more than anything? Small, mindless expenses. An overpriced coffee every day, UberEats every evening. Benjamin Franklin wisely warned us of these minor expenditures.
You need to go through your expenses with a fine-tooth comb and analyse what expenses need to stay and what expenses are a waste. If you don’t go to your local gym religiously, cancel that membership.
Do you really need Netflix AND Amazon Prime? Think about it. Use a notebook to track your income and build a monthly budget. Whatever is left over at the end of the money can either be saved or invested.
If you, like me, are a bit weak in the math area, use free apps and websites that will help you track your budget. They will automatically tell you how much you need to save each month based on your income and big financial goals.
9. Eliminate bad debt
Did you know there’s good and bad types of debt? Productive debt is used by many businesses to their advantage. Examples of productive debt include: mortgages for investment properties, business loans, etc.)
But we won’t be discussing this today because the average Joe doesn’t end up with productive debt; they have destructive debt. Unpaid loans, high-interest loans – these are examples of bad debt. They can completely ruin your bank balance if you are not careful.
As a matter of fact, I would advise that you don’t even think about any other purchases until you’ve paid off these debts. Once it’s all paid off, then think about a house or about investing in the stock market.
8. Save 20 percent of your income
According to a poll, one-third of Nigeria have no savings at all. In order to become wealthy, you must set aside at least 20% of your earnings (emphasis on ‘at least’). And although ‘save your income’ seems like a message we’ve been hearing since day one, clearly not many people are following it.
The phrase ‘pay yourself first’ bears a lot of weight in this situation. Many don’t realise the value of this message, but the wise ones know that this money not only serves as a rainy-day fund for emergencies, but also money for day-to-day expenses.
According to another report, nearly half of the working Nigerian population has no retirement savings, and about 70% have less than ₦600,000 in their savings account. With this kind of financial situation, they are one tiny emergency away from utter financial ruin.
7. Add massive amounts of value
People are willing to spend plentiful amounts of money for whatever they think will bring them value in life. If you want to be one of the people who they are paying, you need to offer a lot of value over time.
One of the most basic rules of success dictates that you should put in the most effort for the least amount of initial reward. So if you’re looking to get rich quick, this isn’t the place for you.
Keep working at your business and provide your customers more value over time and see how your wealth grows too. To build good fortune, you need to add a good amount of value to whatever skills you have.
6. Set daily goals
Have you seen that one Office episode where Michael Scott says “I DECLARE BANKRUPTCY!!” only to be told ‘declaring’ it isn’t enough? He’s actually got to do things to show he’s bankrupt. The same applies for being wealthy.
You can’t just say “ah I’m a millionaire” and expect the money to show up in your account; you have to work for it. Start by determining an amount you want and by when you’d like to achieve it. This is your big picture.
Now you can create daily to-do lists to get to your end goal. It is proven that setting daily goals gives you a sense of accomplishment. This sense aids you when you work on bigger, more daunting goals.
Now, you might find it difficult to save towards a lofty objective of wealth if you’re starting from zero. As cheesy as it sounds, don’t give into the fear, use it to guide you. “I never want to be in this financial mess again” should be your daily dose of motivation.
Learn about compound interest and use it to your advantage. Whatever extra pennies you save, put them towards high-return investments.
5. Manage your time effectively
Whether you’re a blue-collar worker or a professional athlete, you have the same 24 hours as the person next to you. You need to take advantage of your time because it’s a valuable commodity.
Every second wasted is every penny not generated. Build time-management skills and with your daily to-do list, you’ll be wealthy in no time.
4. Kick those bad habits
Building your wealth takes time and effort. If you have bad habits like laziness, unproductivity, mindless expenses, you won’t be able to meet your goal in the required time frame.
These bad habits will drag you down and make it harder to focus on your goal. Get rid of them so all your time and energy can be spent on growing your wealth.
3. Build multiple streams of passive income
To build good fortune, it’s somewhat common knowledge that the wealthy have multiple streams of passive income. They don’t work for money; they make it work for them. You have to be able to generate revenue on autopilot.
There are so many ways in which you can generate passive income. Real estate and dividend income are two of the most popular areas for those who can pass the high-cost barrier entrance fees.
You can make passive income by opening a blog, selling digital products like e-books or online courses/lessons. These are just some of the options. There are so many ways in this digital age to make passive income.
The basic principle of passive income is this: you do the work once, and then you reap the rewards multiple times. This is the opposite of active income: you have to work for each penny. You stop earning the moment you stop working. Active income alone will not help you grow your wealth.
2. Invest in what you know
If you know, live, and breathe the pharmaceuticals industry, invest in that. Don’t go and invest in agriculture unless you know, live and breathe that too. One could get easily influenced by other industries they know nothing about, thinking that it’s a great ‘get rich quick scheme’.
This is the biggest financial mistake you could make. Investing is much more than a game of chance. A single financial blunder might wipe out a significant portion of your money. If you do see a booming industry but know nothing about it, take your time to research and count on the advice of professionals and experts before you put a single penny into that industry.
1. Mind your own business
You could successfully grow rich if you’re an employee at a 9-5. This, however, could be the most cumbersome and tedious way. If you start your own business, it will take hard work at the beginning, but once the business takes off, you can sit back and delegate.
Even with a series of failures, you can learn from them and improve. Henry Ford learnt a lot from his failures. He never gave up. The man went bankrupt twice AND was thrown out of his second firm, but he didn’t let that stop him.
He literally and figuratively minded his business: he learnt from his mistakes and used it to grow his business, all the while not caring about what others were doing or saying. This has been the best step to build good fortune.
There is a lot more to life than simply accumulating wealth. I whole-heartedly agree with this statement. BUT! Wouldn’t life be so much more fun and memorable if you are also wealthy? It’s all about balance.
Have multiple streams of income and a business that’s making money for you while you enjoy life to the fullest with your family and obviously, an ever-growing bank balance.
Well folks, that’s all we have for you today. If you enjoyed the article, we have a lot more coming out, so don’t miss out and subscribe to Waptutors below. With that said, have a great day and see you in the next one!