First Step in Wealth Creation

 People ask: "What is the first step in the journey of wealth creation".

My answer would be: Control your Expenditure.  But then I am echoing a great man, Mr.Buffet.

Warren Buffet's says:
"Spend less than you earn. Never get into debt."


Another source:

In the book "The Richest Man in Babylon" by Goerge Calson,  there are seven rules described as the cures for lean purse.
One of the cures is "Live within your means".

This book suggests that we spend not more than 90% of the income and save that remaining 10% for for investments.

Wealth is created by making money work for you.

Live within your means.
Save atleast 10% of what you earn to create investment corpus.
Pay your self first. Let this be the first activity after every paycheck.

Once the investment corpus grows to be sizeable, start investing.

Make money work for you.

Chose your investments carefully.

Capital preservation is paramount.

Understand and study the risks involved.

Risk Reward ratio must be favorable while investing.

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