Success is often defined in many ways. Some view it in the context of achieving personal goals, others in excelling in one’s career and others in making meaningful contributions to society. However, as I have spelled out in my recent publication titled, ‘How to Build Wealth and Secure your Future’, one of the most practical and universally accepted measures of success is financial security.
To assist you to master the ‘how-to’, I have by title—‘How to Build Wealth and Secure your Future’—on special offer for the next 48 hours that end of Sunday the 19th of January 2025 by midday. You will get your copy at a 10% discount that translates to Ksh. 1,350/- down from Ksh. 1,500/- if you pick yours in by Sunday midday. The link to your copy is https://nuriakenya.com/product/how-to-build-wealth-and-secure-your-future-a-simplified-guide-to-money-debts-investments-and-estate-planning/
Back to matters financial literacy…. In a world where traditional methods of building wealth have been transformed dramatically by the entry of cutting-edge technologies that churn out new knowledge by the tick of the second, it is imperative that one takes note of the shift of the tectonic plates that underlie success in achieving financial freedom. After all, it’s no secret that the global financial landscape has changed dramatically over the past few decades and that unless we align our financial goals with emerging realities we could find ourselves in a quagmire.
With the rise of automation, artificial intelligence, and other technological advancements, many of the stable, long-term jobs that once provided a reliable path to financial security are no longer guaranteed. Therefore, in many cities around the world, homeownership—once considered a basic pillar of financial success—is increasingly out of reach for many young people. In that regard, understanding how to build wealth is no longer a luxury but a necessity for anyone striving for long-term success and comfort.
At the same time, retirement plans and pensions, which once provided a sense of security for older generations, are not always as reliable as they once were. With fewer people relying on employer-provided pensions and government systems stretched thin, individuals must now take the future of their financial wellbeing into their own hands and take the necessary action.
Given these realities, the idea of financial success isn’t just about earning a good salary or having a well-paying job. It’s about building wealth—creating streams of income, saving for the future, avoiding getting steeped in debt, planning one’s estate prudently and making strategic investments to ensure that when the inevitable challenges of life arise, you’re not caught flat-footed.
It is critical to remember that building wealth isn’t a preserve of the rich or the financially-savvy. Rather, building wealth is everyone’s business. It is an art everyone should aim at mastering regardless of one’s financial situation at any given time.
But why should we learn how to build wealth? Let me share with you four basic reasons that are well extrapolated in my book.
Firstly, the primary reason for building wealth is to achieve financial independence. The more wealth you build, the less you’ll need to rely on traditional sources of earning to meet your needs. This freedom means you can make life decisions based on your desires and goals, not just financial obligations. Whether it’s choosing to work in a field that aligns with your passions or taking a sabbatical to tour the world, financial freedom opens up new opportunities that might not have hitherto been possible, let alone imaginable.
Secondly, Life is unpredictable. No matter how careful you are or how well you plan, emergencies can strike at any time—whether it’s a sudden illness, a natural disaster, or an unexpected job loss. A good example is the wildfires ravaging California in the USA just now. Building wealth means having a safety net in place to weather the storms life may surprise you with. With the right financial planning, you can avoid the kind of financial devastation that often accompanies unforeseen events.
Thirdly, whether you’re planning to retire in 20 years or 50, building wealth ensures that you’ll have the resources to live comfortably in your later years. The earlier you start, the more time your money has to grow, thanks to the power of compound interest. Building wealth also allows you to ensure that your children or loved ones will be taken care of in the future by creating a legacy that extends beyond your lifetime.
Fourthly, worrying constantly about how you’ll pay bills or manage debt can be stressful. But by learning how to build and manage wealth, you can create a sense of peace. When you have multiple streams of income, savings, and investments, you don’t have to worry about falling into pecuniary embarrassment.
How do you go about it?
The first step toward building wealth is to educate yourself about personal finance. Understanding the basics of budgeting, saving and investing is crucial. Learn from ‘How to Build Wealth and Secure your Future’ the way to manage debt, track your expenses and plan for both short-term and long-term financial goals.
Commit to saving and investing to grow your wealth. Begin by creating an emergency fund, then focus on long-term investments such as retirement accounts, stocks, real estate, or other vehicles that will appreciate over time. Again, learn more from ‘How to Build Wealth and Secure your Future’.
Remember, building wealth isn’t just about earning more money—it’s also about how you manage the money you already have. Practicing frugality and living below your means allows you to save and invest more. Avoid lifestyle inflation, where you increase your spending every time your income rises. Instead, use your increased earnings to grow your wealth further.
Uphold the principle of building wealth through diversification. Rather than putting all your money into one type of investment, spread it across different asset classes. This helps to reduce risk and increases the likelihood of positive returns over time.
Aside from that seek professional advice—as captured in ‘How to Build Wealth and Secure your Future’—while educating yourself about personal finance. A professional can offer guidance on more complex investment strategies, tax planning and estate planning.
In the pursuit of success, it’s easy to overlook the critical importance of financial security. But the truth is, no matter how accomplished or talented you are, without a solid understanding of how to build wealth, your future can remain uncertain. Learning how to manage money, save and invest wisely is essential for anyone looking to ensure a comfortable and secure future.
Wish to be edified in the basics of financial literacy? Buy your copy of ‘How to Build Wealth and Secure your Future’ today and enjoy the read!
The author, Simon Muchiri, is a financial literacy expert with years of quality experience in various outfits in Kenya and abroad. (simonmuchiri.sm@gmail.com/0722670834)
