Everybody desires to create wealth. This is why wealth creation is highly searched on search engines like Google.

Becoming wealthy or even just rich comes with numerous options and prestige that everyone would like to have. Think of billionaires like Bill Gates and Jack Ma, they have more than they will ever need. This is what financial abundance can do.

Even though many want financial success, very few get it. We only have a handful of millionaires around the world. The billionaires are even fewer. Many just survive and struggle through life endlessly.

Lack and poverty should be avoided at all costs. It is never supposed to be your portion. Never make peace with lack or settle for being poor. Use all your energy and wits to fight for financial freedom.

Everyone has the potential to create wealth. However, many do not play the game of wealth creation by the rules. This is why they work hard and still struggle financially.

21 rules of wealth creation

Here is the ultimate guide to creating wealth. These 21 rules of wealth creation will prepare you for the long journey ahead.

1. Never spend more than you earn

This is the worst financial mistake anyone can make. Many people spend everything they earn and a bit more. This way, they do not invest in a better life.

When it comes to spending:

·     Never spend more than 50% of what you earn.

·     Always delay spending for around a week.

·     Have an automatic saving plan. This can be a savings bank account that deducts money from your monthly income even before you get it.

·     Always pay yourself first. Invest before you spend.

·     Avoid the rat race- Increasing your expenses as your income increases.

2. Never borrow to consume

Many people who have spending problems end up borrowing to finance this bad habit. They borrow to consume. This is one of the worst mistakes you should avoid if you want to create wealth.

To create wealth, borrowing to invest is important. This is called using other people’s money.

However, without a proper plan and knowledge, borrowing can end up in wastage or poor allocation. This can lead to financial pressure and even bankruptcy.

When borrowing from a bank:

·     Have a prior solid investment plan.

·     Never borrow more than you need.

·     Negotiate for better terms I.e. interest rates, repayment period, etc.

·     Invest immediately after receiving the cash.

·     Do not take a cent away for consumption purposes.

If you can properly handle debt, you can easily create wealth.

3. Never buy liabilities before assets

An asset is something that increases your economic value. In short, it puts money in your pocket.

A liability decreases your financial value. This means that it takes money from your pocket.

Never buy liabilities before you have a strong asset position. Only buy liabilities after you have enough assets. Make sure that the liability does not consume all the income you get from your assets.

Common liabilities people buy too soon:

·     A personal car.

·     A personal house.

·     Taking kids to very expensive schools without being financially free.

·     Going for expensive holidays just because your workmates are also doing it.

·     Wearing expensive clothes and shoes.

Assets everybody should have:

·     A business

·     Real estate

·     Promising stocks

·     Precious metals like gold, diamond, silver, etc.

Always make sure that you have more assets than liabilities. Let your assets bring you more money than your liabilities take away.

4. Avoid get-rich-quick schemes

These schemes are responsible for the financial losses of many. This is how many go bankrupt.

The rule is that if an investment plan looks too good to be true, it probably is. All these investment vehicles that promise very high returns are most probably a fraud. Never invest in such investment schemes.

If your conscious is not feeling good about the plan, leave it. Good schemes promise between 5-25% return on investment. Anything above that is something worth being cautious about.