Wealth Creation

The importance of wealth creation can be summed up by a statement made by legendary investor Warren Buffet – “If you don’t find a way to make money while you sleep, you will have to work till you die”. What he meant by this statement is that one of the key objectives of wealth creation is the ability to generate wealth passively by investing money that has been earned previously. This way savings grow over time and add to the wealth of the investor. 

 

At the most basic level, wealth creation is just about growing your money to achieve various short, medium, and long-term financial goals. Short-term financial goals could mean saving enough money for a vacation or to buy the latest iPhone. These are typically goals that need to be achieved within a period of 3 years or less.   

 

Medium-term goals are usually investment goals that have to be achieved within a period of 3 to 5 years. Examples of such wealth creation goals can include saving for a new car, saving for the down payment for a new house, etc.   

 

On the other hand, long-term goals such as ensuring sufficient retirement savings can easily have an investment horizon that extends into multiple years and even decades. In this case, you need to ensure that you create enough wealth during your working life to support your post-retirement financial needs. 

 

Now as there can be multiple objectives of wealth creation along with different time horizons, you have to implement different strategies to achieve such varied goals. 

 

Here at CommIT we assist with interest rates from as litte as 20.0pa for more information send email to [email protected] and we will contact you back