How to See Through the Smokescreen of Gurus who Promise you Wealth

There is no formula to determine how much wealth is wealth enough for you, or how much income is needed to build that wealth that will keep you satisfied. It all depends on you. What’s common to all of us is that In order to start building wealth, a proportion of our after-tax income should be saved regularly. Financial advisers would recommend a target of one-third but your income has a large role to play here. So let’s start with, how you generate income.

Unless you encounter the good fortune of inheriting money, property, or other assets to fast-track your journey to wealth, savings and investments from your income are the two principal strategies that can make you wealthy. That income can be earned in two main ways:

• Active or earned income: such as wages, salaries, tips, commissions e.tc which usually involves a degree of exertion to generate.
• Passive income: Money is received in exchange for little ongoing effort. You may have to do some work to set it up but after that, it needs less attention.