The ‘fastest’ way to build wealth – ‘It’s not rocket science!’
Savings: Expert gives advice on 'crucial' ways to save money
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
On The Conversations of Money podcast, Mr Komolafe stressed the importance of one being able to keep as much of their income as possible. He said: “The fastest way that you can create your wealth is to essentially make sure that you are able to retain as much as what you earn as possible. It’s not rocket science.”
Really understanding budget is another suggestion. “If you’re earning £2,500 a month, how much of that are you actually saving?” he said.
“I know people who are earning £10,000-£15,000 a month and are still broke. It’s not about what you earn, it’s about how much of what you earn you are able to retain that’s important.
“Once you’re able to do that, you can allocate what you retain into investments or projects, or into business or property, then to create that wealth.
“This is the building block, the first step that you absolutely have to make sure that you have.”
To help listeners master this crucial step, Mr Komolafe gave three tips that may make the retention of income easier for people.
- Look afar
He said: “Instant gratification is a killer.
“That feeling after you’ve bought something and you feel good about yourself – that is an addictive habit that has negative consequences for your income, for your expenditure, and for your ability to build wealth.
“Because the addiction is repetitive it can become damaging in the long run as you will always chase what makes you feel good in the short term.
“Look beyond next week, next month. Where do you want to be? We have to aspire and looking at what do we want this to be.”
He urged Britons to think long term about their goals for the future and where they want to be to help combat any feelings of instant gratification.
- Be intentional
Mr Komolafe explained the importance of everyone having specific goals with a timeline, whether it’s starting a business by next year, or having a rental property or getting on the property ladder by the summer or saving a specific amount in an ISA before Christmas.
He said: “Be specific, have a timeline around it, make sure it’s something achievable, and that is relevant to you. It’s a smart goal that is timely.
“Being really clear, and intentional about what you want sounds really simple I know but it’s harder to do in practice. But it is a really important point.
“I’m challenging you, what is your goal, what is your intention a year from now, two years from now, three years from now etc.
- Don’t compare yourself
The last tip he gave was a quote from Mark Twain — ‘Comparison is the death of joy.’
Mr Komolafe said: “Do not compare yourself to your peers, to your friends, to the people on social media. Your journey is your journey alone, enjoy it, take pride in it and indulge in it.
“Just because Gary down the road is driving a new BMW that doesn not mean you are now inadequate or a failure. No.
He urged Britons to not compare themselves as they never know what lengths someone went through to get the things they may show off – “Gary may have that on finance or owes a load of money. Gary doesn’t have the goals that you do.”
Mr Komolafe’s slogan which he repeats frequently for listeners is ‘money is a tool; life is for living.’
He said: “The primary point of money is to help us build the life that we want. That is it.”
Source: Read Full Article