How To Generate Wealth

The internet is flooded with so much information and tips on wealth.


Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating old English word weal, which is from an Indo-European word stem.

Wealth Generation

It is not a one-day process, it is slow, long term but the guaranteed process if practiced with the correct mindset and knowledge.

It is achieved only and only by the following steps:

  1. Earn
  2. Save
  3. Retain the Value which is been saved
  4. Grow


One needs initial capital which can become big down the line with time. For initial capital, one needs to earn unless they got some money from ancestors.

So it is very important to earn or have some initial capital.


After earning keep some money aside as savings.

In case you face challenges on saving then follow the Japanese art of money-saving

The Japanese tradition of using a kakeibo, which translates to “household finance ledger,” offers an easy solution to mindless spending habits. This budgeting system combines tracking purchases with the habit of mindfulness to reign in unnecessary spending and help you achieve savings goals.

Kakeibo Method is a Simple Japanese Money Trick To Become 35% Richer


This step is very important and to understand it read the book “The Richest Man in Babylon” if you have not read it, definitely it will change your mindset.

Retain the Value which is been saved

As we move the value of the rupee depreciates.

The root cause is inflation that the rupee is losing its value.

Example: Recall the days of our great grandfather when in few rupees they can easily fill the kitchen with a month’s food. But nowadays you can easily imagine that what you can get in rupee.

The average inflation rate of India is 6.2% which means if you can buy an item for 100 INR in 2020 and if you want to buy the same item after a year then it will cost you 106.2 INR, so keeping the money in Almira depreciated the value of money.

Keeping the money at home which remains INR 100

If you put the same in the bank it will go maybe up to INR 104.2 considering that the annual interest rate is 4.2%

Still, you are short with 2 INR to buy the same item.

So to retain the value it is important to keep the money in an instrument that should be at least to the level of inflation.


Once you have money and the value is retained then the next step is to grow.

There are a couple of methods to grow money that can become a huge corpus down the line.

Different people, different mindsets, different approaches, etc

The easiest way to start is to invest with a minimum amount and scale up with informed decisions.

The index fund, mutual fund, gold sovereign bond, or equity are the ones from where you can start the journey of becoming wealthy.

To buy and sell these you need DeMAT account.

A demat account is an account to hold financial securities in electronic form. In India, demat accounts are maintained by two depository organizations, NSDL and CDSL.

In case you don’t have Demat account then you can open the discount stock broker which offers commission-free equity delivery trading and Mutual Funds.

Open Zerodha Account

Do some investment, keep monitoring every quarter, keep on adding what you save from earning and let the compounding do the wonder.

The objective is to create a snowball and make it huge without getting it dissolved. You can read the book “The Snowball: Warren Buffett and the Business of Life

The Snowball was‘s best business and investing book of the year 2008.Time Magazine, People Magazine, and critic Janet Maslin of The New York Times named it one of ten best books of the year.The Washington Post, the Financial Times, BusinessWeek, and Publishers Weekly also each named The Snowball the best book of 2008.The book was shortlisted for the 2008 Financial Times and Goldman Sachs Business Book of the Year Award,as well as the 2009 Gerald Loeb Award for distinguished business journalism.A reviewer in The Economist noted that for those “hoping for detailed analyses of his investment record” the place to start is “Mr. Buffett’s collected essays and annual reports.”As a look at Buffett, the Washington Post stated The Snowball was “the most detailed glimpse inside Warren Buffett and his world that we likely will ever get…a bible for capitalists”and the Los Angeles Times wrote it was “the most authoritative portrait of one of the most important American investors of our time. Source:wiki


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