When it comes to money, most people would love to live in financial freedom. Imagine if you had an unlimited supply of money… You would have no financial stress and no debt. You could do what you love and you could be generous.
For most, this seems to be nothing more than an unattainable dream. However, there is a wealth building strategy that God approves of, that you can apply to your life. While it won’t bring you overnight success, if you apply the principles, you will have the ability to build up a wealth portfolio over the long term.
Now, God wants you to be fruitful, but he also warns us not to be overly focused on money. He wants you to manage your money wisely and build your wealth over time.
“Do not wear yourself out to get rich, do not trust your own cleverness. ”(Proverbs 23:4)
King Solomon, known as the wisest man of his generation said, something profound about building up your wealth. He said, “whoever gathers money little by little makes it grow.” (Proverbs 13:11b)
A simple principle that works!
All you need to do is…
- Invest money little by little,
- Over the long term,
- On a regular basis,
- without drawing it,
This will result in you building up your Wealth Portfolio over time.
When you invest over the long term, you will benefit from the power of compound interest and growth. Compounding occurs when you invest money and allow it to continuously re-invest itself. Compounding is the effect of earning interest not only on the money you originally invested, but also interest on the interest that your investment has already earned. With this strategy, you will have the potential to generate explosive growth beyond your wildest imagination. Compounding gives you the ability to multiply your money over time.
Albert Einstein called COMPOUND INTEREST THE 8TH WONDER OF THE WORLD! He said, “He who understands it EARNS IT! He who doesn’t PAYS IT!”
You do not need to chase riches. Just gather money little by little, and if you don’t draw it, it will generate exponential growth over time.
Stay away from get rich quick schemes
Some, trying to strike it rich quick at all costs, have ended up ruining their lives, living with much regret and often end up stressed out and failing to attain their goals.
We are warned that, “A person who wants quick riches will get into trouble.” (Proverbs 28:20)
We are also told that, “Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time.” (Proverbs 13:11)
Do get overly focused on getting rich. We are told, “People who long to be rich fall into temptation and are trapped by many foolish and harmful desires that plunge them into ruin and destruction. For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.” (1 Timothy 6:9-10)
Don’t run after money. Run after God and simply apply his wealth-building principles.
God’s way…
While God wants us to dare to dream and to aim high, he doesn’t want us to be overly concerned with building wealth. He wants us to rest in Him and to apply his wisdom.
I therefore want to encourage you to build up your Wealth Portfolio based on God’s principles as outlined in the Proverbs where it tells us “whoever gathers money little by little makes it grow. (Proverbs 13:11b)
5 Steps to building a Wealth Portfolio …
- Review your budget:
- Build room in your budget so that you can start investing to build up a Wealth Portfolio. You need to free up space in your budget and decide upon an amount that you can start investing. The amount does not need to be huge. Start small. It is important to make a decision on how much you will start investing.
- Get advice:
- You need to get advice on where to invest your money. You can choose from a variety of investment products. Make sure that you consider a diversified portfolio of balance or growth funds, via a reputable investment house that is well regulated and that has a good track record. This will reduce the risk and give you the ability to generate good growth over the longer term, in a cost efficient manner.
- Automate your investment:
- Once you have decided on the amount and type of investment, you need to get started. Set up a regular payment plan that can come off your account on a fixed date every month, preferably a day after income is paid into your bank account. This will ensure that you invest your money before you are tempted to spend it. By setting up a fixed payment deduction, you will make it easy to stick to your plan.
- Invest over the long term:
- You need to invest over the long term. Avoid the temptation to draw these funds. Rather set up a separate reserve savings account for short term needs and emergencies, but do not draw your money you are allocating to your Wealth Portfolio. Leave it to grow. Over time you will benefit from the power of compound interest and growth.
- Review:
- Annually or whenever you have a life changing event, sit down with your investment advisor and review your investment portfolio. If you get a raise or promotion, make a decision to increase your investment premium. Annually, you can also look at your fund allocation and possibly rebalance your portfolio or add new funds. But, please do not draw your investment. You need to invest your Wealth Portfolio investment over the long term. You will generate explosive growth if you invest over the long term.
Example: If you invest 100 (Units of your currency), and you increase this by 5% each year and if you received 10% p.a. as a return, you will build up…
- 8 823 after 5 years
- 25 471 after 10 years
- 107 558 after 20 years
- 346 564 after 30 years
- 1 008 988 after 40 years
Start small. Increase your investment over time. You can benefit from the power of compounding interest and growth by investing in growth investments over the longer term.
All you need to do is invest money little by little, over the long term, on a regular basis, without drawing it. This will result in you building up your Wealth Portfolio over time.
You do not need to chase money. Just set up a simple automated strategy and invest little by little over the long term, and you will build up your Wealth Portfolio over time.
Keep it simple. You can build up your Wealth Portfolio over time.
Closing comment…
While it is important to manage your money well, and while I really believe it is good to build towards financial freedom, please remember that there is more to life than money.
Jesus told us, “Don’t store treasures for yourselves here on earth where moths and rust will destroy them and thieves can break in and steal them. But store your treasures in heaven where they cannot be destroyed by moths or rust and where thieves cannot break in and steal them. Your heart will be where your treasure is.”(Matthew 6:19-21)
You can build the largest Wealth Portfolio, but you cannot take it with you. There is so much more to life that money. Your walk with God is more important than your money. What is your heart set on? On money or on God?
And remember, you do not have to face life alone. God sent Jesus to be our Savior. He made a way so that we can have a relationship with God. He wants to walk the journey of life with you.
If you want to start or restart your walk with God, click here to pray a simple prayer we have set up for you.
“But remember the LORD your God, for it is he who gives you the ability to produce wealth.” (Deuteronomy 8:18)
God bless you.