How to Build Wealth: The 3 Types of Financial Plans

How to Build Wealth: The 3 Types of Financial Plans

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Financial plan for wealth creation

It’s unfortunate that many of us are not taught much about money at a young age, especially in our homes since it’s not a subject covered in schools as well. It has been a mystery for the most part what is required in order to become financially successful as a result. What I have come to discover is that it’s not at all a complicated process.

I recently read Robert Kiyosaki’s book, “Rich Dad’s Guide to Investing” which taught me a lot of things about investing and wealth creation. I suspect that you want to know the answer to a question that many people have on their minds, “How do I create wealth?”

The vast majority of people are in trouble financially because they don’t have a plan for managing their money. One of the first things you can do is to meet with a financial advisor who can help you begin the process of achieving your financial goals.

One of the biggest lessons I got from reading the book is that wealth creation is an automatic process IF you have a plan and stick to it. Below are the three plans that Robert Kiyosaki recommends if your goal is to become wealthy and financially free.

1. To be secure

Security is a need that every human being has. We want to know that we are safe and not vulnerable to any form of danger to ourselves and also the people that are dear to us. A financial plan to be secure includes things like insurance products, a life cover policy to provide for your family in case you die, medical aid cover for unexpected illness, funeral cover, etc.

These are basic human needs that everyone has and are therefore important to human nature.

2. To be comfortable

When people have their basic needs met the desire for the better things in life kicks in so that they live more comfortably. I bet that’s what you also want for yourself, right? Perhaps you want to buy a new car, travel around the world with your family, raise education fees for your children or buy a new home.

Again, a financial advisor can help you develop a plan that will help you attain those goals through vehicles such as investments for example.

3. To be rich

Most people do well with just the first two plans, and that’s ok. To become rich is a different game altogether because it requires more time and effort than the other plans. The really rich people of the world (2-5% of the entire population) are those that own big businesses and properties.

They participate in investments that are only reserved for the rich which make them even wealthier than others. They are able to do this because they generate massive cash flow in their businesses that allows them to purchase the best real estate, investments and more that people at their level can participate in.

Building a solid business requires a commitment from you for it to prosper in the long run and working with a mentor who is already successful in your line of business is highly recommended. They will provide the insight you need to get to where you want to get to.

NB Even if your goal is to become rich, having the first two plans in place is critically important. I and many other people have made that mistake of just focusing on being rich. While some have done it before it is not the norm.

Thank you for taking the time to read this post, I hope it has helped you. Remember to share your comments below as well as to share the post on your social media profiles. Stay tuned for the next post and until next time,

Be all you can be!

About the author

Sija Mafu is an Online Enthusiast, Personal Development Fan, Global Business owner and a Master in The Art of Living. Also as a devout Christian, his vision is to see young people take responsibility for their lives and create bright futures for themselves, their families and society at large.

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Image Credit: pexels.com Robert Kiyosaki wrote a book