ENTREP CH1

wealth creation

increasing the level of money, getting rich, investing to increase money, increase in the number of assets owned, producing a supply of assets like stocks, gold, cash, bonds, and real estate to generate a stable source of income

importance of wealth creation

regular source of income, healthy retirement, goal-based investing

ideal wealth creation plan

creating a budget, invest rather than just saving, understand the impact of inflation on saving, investing in appreciating assets, becoming debt-free, cutting on unnecessary expenses, don’t mix insurance with investments

budget

estimation of income and expenses over a period of time

creating budget in 5 steps

figure out your after-tax income, select an appropriate budget plan, track your progress, automate your savings, revisit your budget as needed

investment

an asset designed to allow money to grow over a period of time

categories of investment

ownership investments, lending investments, cash equivalents

ownership investment

becoming a partial owner of a company or piece of property, stock, mutual funds, real estate

lending investment

debts you buy expecting to be repaid, low-risk, low-reward investments, bonds

bonds

umbrella term for any type of debt investment

cash equivalents

total value of cash on hand including items similar to cash, current assets, most liquid assets

reason to start investing

keep money safe, grow money, have a stable income, achieve financial goals

inflation

increase in the prices of goods and services in a particular economy, reduces the value of money

money saving tips

income minus savings equals expenses, set monthly budget, eliminate your debt, avoid impulsive spending, decide your priorities, set saving goals, watch your savings grow

w-e-a-l-t-h mindset

work on your money beliefs, expect abundance, action-oriented, live below your means, team up with like-minded people, habitualize smart money moves

work on your money beliefs

identify limiting thoughts, challenge them with facts, reframe negative thoughts

expect abundance

practice gratitude for what you have, visualize your financial goals, focus on opportunities not scarcity

action-oriented

invest time in learning, take calculated risks, start small, build momentum

live below your means

prioritize saving and investing, avoid lifestyle inflation, automate your finances

team up with like-minded people

surround yourself with positivity, find a financial accountability partner, learn from others' experiences

habitualize smart money moves

make financial discipline a routine, review and adjust your budget regularly, stay informed about personal finance