We have seen how once-thriving family-owned businesses have, upon the demise of the founders, struggled to stay afloat if not collapsed altogether. Some giants of the industry locally like transport, logistics companies, supermarkets and so on are today a former shell of themselves if they didn’t die following the founder’s demise. There is no denying the successors couldn’t carry on the founder’s vision hence the rapid business collapse as family feuds played a key role.
It is not surprising that wealth is always concentrated in the hands of a few worldwide who are often times referred to as captains of industry. That Kenya is among the unequal societies in the world where a little percentage of her citizens are filthy rich and the majority are dirt poor is not surprising, but that doesn’t mean one can’t rise to the top of the pyramid. Here is a quick look at how you can build wealth.
Wealth is earned, not given
Success stories are replete with how founders behind great business brands started from scratch to be where they’re today. If the founders are not around, then those who inherited their wealth did so because they are related to them. There was no way that wealth was going to be handed over to them randomly. There is no doubt that the founders made their wealth by creating values consistently over time. Take the example of Coca-Cola which has weathered any competition to be the market leader. To be wealthy, you need to hone your skills. Hard work, grit, and determination are the keys.
Look for more opportunities
If you are a nine-to-five job person, the probability is that you are trading your time for money. This will never make you wealthy. This is not to say it is wrong to be in a regular job, but you need to see beyond that. What if you are laid off when the organisation downsizes its operations or just gets sacked? While you are still employed, start a business on the side. With time, it will grow to a point where you can comfortably leave employment for business. Other opportunities to explore on the side are monetising what you are good at, say blogging, creating YouTube tutorials, writing a book, and so on. You never know if that pastime can turn into a financial breakthrough.
Cut down on unnecessary spending
Many of us have that habit of spending without budgeting first. If you can’t rein in your spending, you can’t build wealth. There is also the ostentatious show-off lifestyle where one tries to look wealthy by splurging when they are not wealthy. The focus should be on building wealth. Spending on anything that doesn’t further that wealth-creation will only serve to derail the goal. Avoid the temptation to lavish yourself with the finer things in life when money begins flowing.
If you are able to rein in on your spending habits, it follows that you can save. There are the usual expenses to meet when that salary comes but that doesn’t negate the fact that a certain fraction should go into savings. You need to go beyond putting money away for emergencies, and harness investments. You may come across that once-in-a-lifetime investment opportunity or property on a quick sale. One basic rule about money is that it loves speed, and if you have it you can easily take advantage and prosper.
Don’t save for the essence of saving, but put that money to work as soon as an opportunity comes. If your money is lying idle in the bank, it is only earning you a paltry interest or none at all. You are losing a chunk to inflation. Think of investing in options that will yield good interest in the long run.
