19 responses

  1. krantcents

    A goal and a plan is the surest way to wealth creation. It helped me achieve financial independence at an early age (38 y.o.).

    • Money Cactus

      38 is an awesome effort! I had similar plans when starting out, but I’m not sure I’ll get there that soon. By 40 would be nice ;)

  2. maria@moneyprinciple

    Very similar to your approach – in fact I just yesterday published a post on the same theme. What I have been puzzling over thought is what do you do when you are running out of time? What if you don’t start a pension early, can you catch up?

    What I am driving at is that I like your equation but there are missing functions in it.

    • Money Cactus

      Hey Maria, good questions. You can make a start any time you like and it is never too late however, you can’t ever really catch up by starting later. Compounding interest is is a pretty powerful tool and even saving a small amount now can be better than much more later.

      I’d love to see a revised equation if you have one, this one is pretty simple after all. Let me know what you think is missing and I’ll incorporate it.

  3. Van Beek @ Stock Trend Investing

    Yes, doing something consistently for a longer period is essential to planned wealth creation. The main question is then what to do. This should be something that you want to do and are able to do. And it should be something that is profitable: more revenue than costs.
    In formula format:

    Wealth creation = wanted profitable action x consistency x time

  4. [email protected]

    Very nice article! Yes “making” money is very different from “Earning” money. As far as I am concerned I believe to make money by creating value for users of my website.

  5. Dannielle @ Odd Cents

    I know that if I want to create wealth, I can not blow my money on clothes and shoes. It might make me happy to have these things now, but in about ten years, they won’t be around…

  6. Jeff @ Sustainable Life Blog

    Great points here – consistency over time is what can help generate wealth – though I dont think savings counts (for me, anyway) that wealth had already been created, it was just being reallocated to me

  7. Elizabeth @ Broke Professionals

    Interesting thoughts about the making vs earning money – I never thought of it that way, but I wholeheartedly agree.

  8. Simple Finance Blog

    I absolutely agree with your thoughts creating wealth needs to be done consistently – things like automatically putting money into your savings account (or investments) at the start of the month has been crucial for my family as we build our financial foundation.

  9. Roshawn @ Watson Inc

    I guess my definition is more closely aligned with the one based on assets. I wonder about the exercise example you provided: it seems to meet that if you get slightly off track, your body may not notice, but the culmination of missed workouts is what is the ends up messing you over. I would think the same is true regarding finances: it’s a marathon not a sprint.

  10. Tim Joseph

    The post is absolutely fantastic! Lots of great information and inspiration both of which we all need! Also like to admire the time and effort you put into your blog and detailed information you offer! I will bookmark your blog!
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  11. Debt consolidation

    Personally for me wealth creation starts with watching what you spend your hard earned money on. Debt could pile up like a snowball. It is not about how much you make but rather how much you spend. BTW, great article and good for you guys!

  12. Chris Gold

    I agree with your consistency/time approach as wealth creation can be frustratingly time consuming. The shift to “making money” requires a long term approach and the ability to prioritize saving, investing and getting away from a transient come and go mentality towards spending. Finding consistency may be the hardest obstacle but it will certainly pay off.

  13. Cash Advances

    In my eyes the terms ‘wealth creation’ and ‘making money’ are two totally separate things. As making money is just a short term process such as writing an article for money for example. Whereas with wealth creation, personally I see that as a long term strategy such as creating a profitable business.


  14. Carrot God

    hello i like carrots

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