The Source of Wealth Building

Learning from the richest from world, the wealth can mainly be built from 2 sources. One is building a successful business with high valuation and second one is building profitable investment portfolio by leveraging on other successful businesses.

If one desires to be very rich, one cannot simply rely on working to get higher salary and save more. Even becoming a self employed does not necessarily mean an effective way in building wealth. One needs to build the business to be automated and having high valuation to be able to increase his / her wealth. In fact, the wealth built through business can only be confirmed when the business is sold or listed. Else, the wealth is not retriable when it seems to be only on paper that cannot be realized.

The world wealth is being built at a pace that is so fast compared to last century. If we notice, the inflation rate is getting higher and higher. It is a sad fact to know that the salary increment mostly cannot catch up with the inflation rate. This is why we feel that the things are getting more and more expensive, and it is harder to afford a house compared to a decade ago.

Because of the high speed of inflation and wealth growing, one needs to be aware of what needs to be done on building his / her own wealth at least at the same pace. If others are growing their wealth at a faster pace, staying on the same pace will mean he / she is poorer. Things will be getting more expensive.

Hence, it is important to stop and think about the source of wealth. One shall not only put the focus on the salary increment or expenses reduction. The focus shall now be more on channeling the extra saving to build wealth. The effective ways, from what is happening now, are building a listed company or invest in such companies on the secondary market. If we cannot build a listed company, at least we shall find a way to leverage on such companies through investment.

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