3 Simple Steps to Building Wealth

Building wealth is a topic that can spark heated debate, promote quirky "get rich quick" schemes, or drive people to pursue transactions they might otherwise never consider. But are "three simple steps to building wealth" a misleading concept? The simple answer is no. But while the basic steps to building wealth are simple to understand, they're much more difficult to follow.
Basically, to accumulate wealth over time, you need to do three things:
Make money.
Before you can begin to save or invest, you need to have a long-term source of income that's sufficient to have some left after you've covered your necessities and debts.
Save money.
Once you have an income that's enough to cover your basics, develop a proactive savings plan.
Invest money.
Once you've set aside a monthly savings goal, invest it prudently.

Key Takeaways

• There is a basic formula for building wealth: make more money than you spend, avoid debt, and invest your savings wisely.
• The first step is to earn enough money, which is easier if you're doing work you enjoy, are good at, and pays well.
• The second step is to save enough money, which can require disciplined budgeting and planning.
• According to this basic method of wealth-building, taking on a bit of risk and making prudent investments is the third step.