7 Pillars of Wealth Creation

Have you ever asked yourself the question, “How can I become rich”?  You’d be surprise at the number of people that never ask the question; for fear that they may be aspiring to a goal that they may never be able to reach.

The way the rich get rich and richer, is not by working:

  • for money, but by getting money to work for them.
  • for people, but by getting people to work for them.
  • within systems, but by creating systems that will work for them.

Photo by Linus Bohman via Flickr

Most people find that wealth eludes them, only because they have not got a good wealth creation foundation in place.  Programmed by the education system which inoculates them against the creation of wealth they automatically get into working for money, and find it difficult and if not impossible to escape its deceptive trap.

How a person thinks about money is a determining factor of if they will ever be wealthy or not.  Once a good wealth mindset is in place, you need to erect Wealth Pillars that will support your Wealth Empire and protect it against economic and other storms of life.

For your Wealth Empire to stand strong and tall, you need to employ and invest in some or all of these Pillars of Wealth.  These pillars are simply wealth creation vehicles that you can use to achieve your financial goals.

Pillar #1.  A Great Career

Having a great career is a good stepping stone towards building your empire of wealth; as it could supply you with the cash that you need to invest in other ventures, and help you keep your personal affairs running, while you pursue the creation of wealth.

Some people create their wealth part-time while still pursuing their career, by investing in real estate, stocks, shares and bonds, creating intellectual property, or in their own business.

Some people work at the wealth creation with the aim of eventually replacing their job, while others are happy with what they do and just want a another source of income, to help build a retirement fund, improve the quality of life for their family, save up for their children’s education, or engage in philanthropy.

If you are looking to create wealth, don’t resent having to work a job,  and don’t treat you job as an all in all pursuit, treat it as a stepping stone, a vehicle to help you get to the next  stop on your wealth creation journey.

Pillar #2. Real Estate – Property and Land

Real estate is one of the oldest forms of investment, practiced by peoples of all times.  The land owner or the landlord was king. Wars are fought and families split up over ownership of property and land.   It was known that whoever owned the title deeds of the property or the land owned the wealth.

Income generated from real estate is of twofold:

  • Rental Income:  Income that comes from the rental of the property or land. This generally helps with the day to day management of the property, and provides a regular income from the owner to draw on.
  • Equity:  Income that comes from the property appreciating or growing in value overtime.  This generally grows over a medium to long term period, and produces substantial returns on the money originally invested.  Equity was what made the landlords rich and made them kings of the land.

Pillar #3. Intellectual Property

Your intellectual property is a great asset and you must see it as that.  The creations of your mind — music, books, paintings, articles, papers, ideas and inventions of all kinds, all come under this umbrella and can be given commercial value if you know how to.

Your intellectual property has the potential to continue to work for you and produce an income for you as long as you live.  Some have their intellectual property grow in value even as they grow old.

Pillar #4. Building Your Own Business

When you spend your life working in someone else’s business, you walk away after 40 years or more, with no part of the business belonging to you. You’d have built skills and expertise which you can capitalize on if you really know how, you’d have also built mentor equity, knowledge and experience that could be packaged and shared at a price. But most of the value that you’ve built in the business is owned by someone else.  You were earning a wage, while they were creating wealth.

By building you own business you are building value that can be tapped in to, and can be funneled into other investments or ventures.  Apart from drawing an income from your business year after year, you  build equity and value  that can sold off  at a good price, or could be handed down to your children, and even their children too.

With your own business you can leverage your earning by not only earning from your own efforts but by earning from other people’s efforts too.  You can become a contractor or an agency and earn a percentage of the earnings made by other people.  For example employment agencies, tutoring agencies, nursing agencies, and cleaning agencies use this way of making money from other people efforts, as a business model for leveraging their wealth.

Pillar #5. Investing in Other People’s Businesses

People invest in the same things but for different reasons.

Some people may invest in stocks, shares or bonds; because it’s a way multiply their wealth.   Many people, who want to own a business, but do not want to be tied down with the chores of or running one, may choose to buy stocks, shares in a business, or several businesses.

Some people may want a quick and high return on their investments and invest in stocks and shares.  While others want a hands-off approach, and want an investment can grow safely overtime, so they invest in bonds instead.

Pillar #6. The Internet

In the last decade, the latest breed of Millionaires has been created via the Internet.

With the advance of the technological age, information is king.  Anyone who is willing to invest the time and effort can develop, package and market their knowledge and creative digital products and sell them at a great profit, in great quantities, over a short period of time.

Internet technology has made it easier to research and reach your target market and presell to thousands of warm and ready to buy customers, at the same, without even getting out of your pajamas or leaving your bedroom.

This market is accessible to all, as the entry cost into this market is low.  With a great mentor, a good and reputable training program that will give you a sound knowledge of how the internet works and an excellent tool to help build your own online business, you’d be laughing all the way to the bank.

Pillar #7.  Multi Level Marketing

Multi level marketing is another great vehicle for creating wealth in the 21st Century.

It’s been dubbed by Robert Kiyosaki, as “The Business of the 21st Century” and by Robert G. Allen as “The Ultimate Money Machine”.

The reason why MLM’s have such a great income generating potential is because they employ leverage, this magnifies your efforts.  Leverage allows you to earn, not only from your own efforts, but from the efforts of those in your team. MLM businesses also have the potential for making it possible to earn a residual income.

Multi level marketing is simply a marketing strategy, which any business can use to market their products or services.   Many people see the business and its marketing strategy as one and the same thing; this shouldn’t really be the case.

Evaluate the business on its own merits, and not only on the basis of its strategy for marketing its wares.

About the Author

By , on Jan 25, 2012
author
Davida Yemi-Akanle is a Money Mentor and Coach who helps Budding Entrepreneurs achieve their Wealth Creation Goals. She has a burning passion to help people get rid of their money worries by Making Money and Saving Money; helping them to take vital steps towards becoming financially free.

Leave Your Comment (7 Comments)

  1. Elizabeth Korasare says:

    Yes this is great, people should also understand that wealth creation is based on the mindset. Some people find poverty a sure way of shirking responsibility and wallowing in self pity looking only for handouts, therefore even if any of the principles outlined are available they overlook because anything to create wealth will come with responsibility as well which they fear to stand for. This is also a reality. It is a pity.

  2. Davida says:

    @Andrea… that’s right, the only thing is that earnings from a portfolio may be more passive than running a business.

  3. Davida says:

    @krantcents Real Estate is my preferred vehicle for wealth creation, I agree with you, it’s a tested and tried method for creating wealth.

    However, if people haven’t got the money to invest in real estate as yet, it’s good to know that all hope is not lost, and their are other vehicles they can employ to move towards their goal.

    With regards to MLM business, not all MLM business opportunities are equal.

    My MLM business deals in services, you do not have to pay for, or carry products; they deal in Essentials, things that everyone has to use if they like it or not; its a recession proof business, its growth has escalated in the the Recession; It is a great residual opportunity, you don’t have to look for customers to sell to all they while, you get a customer once, and you earn a commission from them each month when they pay their bills.

    Agreed, there are some MLM businesses out there that I would not touch with a barge pole, and I’ve learnt to examine each business against their own merits.

  4. Davida says:

    @Steve thank you, I could see you’ve written an article around getting out of debt recently.

    I agree with you that getting out of debt, and saving is necessary, and some of these pillars can also be used as a Vehicle to save money, and get out of debt, like getting a second job etc, and of course one needs to change their money habits too, if that is where the problem is rooted.

    But I strongly believe that many people are trying to create wealth, but have the wrong blueprint. People have to re-orientate themselves, see the big picture and change their blueprint… they should have an understanding of what to aim for, and to aspire to.

  5. Andrea says:

    Great post. I started my own business when I was young and I feel quite certain that it’s the way to get ahead. I think a lot of people can also get an edge by starting a business on the side, so that they can boost their savings. If you can earn an extra $500 or $1000 a month through a side business, that’s the same as getting a 10% return on a $60,000 to $120,000 portfolio!

  6. krantcents says:

    I agree with everything, but MLM. I achieved financial freedom when I was 38 years old through ownership of rental property. That was 27 years ago!

  7. Steve says:

    Hi, Davida! Thanks for a great article. Your website also looks great. My only desire is that those who are reading this realize that it really helps to have a strong foundation of saving and no debt before going into any business venture. Careful research and investment in an experienced coach who is already doing what you want to do are key success factors.

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