Wealth creation refers to building wealth through a variety of methods using financial products. When you invest in financial products for a long period, you get back higher returns.

1. MONEY EARNING
ANDWEALTH
CREATION
- T.Bhargav Reddy
- Investor and financial advisor

2. ■Contents
■what is wealth creation?
■ Create wealth over time
■1.Make moeny
■2.save money
■3. Invest money

3. ■What IsWealth Creation?
■ One cannot create wealth by just earning more money.
You have to invest your savings to create a parallel
stream of income.This process of investing your saved
money to grow your wealth by choosing investments that
align with your financial goals is called wealth creation.
■ For sufficient wealth creation, apart from
choosing the right investment, you also have
to give your investments sufficient time to
grow.

4. ■Basically, to accumulate wealth over
time, you need to do just three things
■1) Make money,
■(2) save money, and
■ (3) invest money.

5. 1: Make Money
This step may seem elementary but is the
most fundamental one for those who are
just starting out.You’ve probably seen
charts showing that a small amount of
money regularly saved and allowed to
compound over time eventually can grow
into a substantial sum.

6. ■What do you enjoy
■ You will perform better, build a longer-lasting career, and be more
likely to succeed financially by doing something that you enjoy and
find meaningful. In fact, one study found that more than nine out
of 10 workers said they would trade a percentage of their lifetime
earnings for greater meaning at work.
■What are you looking at ?
■ Look at what you do well and how you can use those talents to
earn a living.
■ What will pay well? Look at careers using what you enjoy and do
well that will meet your financial expectations.

7. ■Step 2: Save Money
■ Simply making money won’t help you build wealth if
you end up spending it all.To set more money aside
for building wealth, consider these four moves:
■ Track your spending for at least a month.You might
want to use a financial software package to help you
do this, but a small, pocket-size notebook could also
suffice. Record your every expenditure, no matter
how small; many people are surprised to see where
all their money goes.

8. ■ Many other expenditures will merely be wants.
But take a hard look at both categories.While you
can probably eliminate some wants altogether, you
may be spending more than you really should on
some needs, such as clothing.
■ Set a savings goal. Once you have a reasonable
idea of how much money you can set aside each
month, try to stick to it.This doesn’t mean that you
have to live like a miser or be frugal all the time. If
you’re meeting your savings goals, feel free to
reward yourself and splurge (an appropriate
amount) once in a while.You’ll feel better and be

9. ■3.Invest money
■ Once you’ve managed to set aside some money,
the next step is investing it so that it will grow.
■
■ (Before you start investing, however, make sure
you have some money set aside to handle any
unexpected financial emergencies.A common
recommendation is to build up enough to cover at
least three to six months’ worth of expenses in a
liquid account, such as a bank savings account or a
money market fund.)

10. ■ Stocks are shares of ownership in a corporation.
When you buy stock, you own a tiny slice of that
company and will benefit from any rise in its
share price, as well as any dividends that it pays
out. Stocks are generally seen as riskier than
bonds, but stocks can also vary widely in risk from
one corporation to another.

11. ■ Bonds are like IOUs from a company or government.
When you buy a bond, the issuer promises to pay your
money back, with interest, after a certain period. As a
very general rule, bonds are considered less risky than
stocks, but with less potential upside. At the same
time, some bonds are riskier than others; bond-rating
agencies assign them letter grades to reflect that.
■ Mutual funds are pools of securities—often stocks,
bonds, or a combination of the two.When you buy
mutual fund shares, you get a slice of the entire pool.

12. ■ Different ways of investments?
■ 1.stock market
■ 2.Mutual funds
■ 3.fixed deposit
■ 4.Real estate

13. ■Thank you