4 Things I Invested In To Become Rich

Wealth isn't built overnight. It's the result of consistent effort, smart choices, and a long-term perspective. It's not just about the numbers in your bank account, but also the richness of your life experiences and the strength of your relationships. My journey to building wealth has been a multifaceted one. In today's blog post I am going to be sharing four areas that I invested in to improve my life and finances. The list is not final but these 4 are definitely essential to get everything else moving. Let's go..

1. My Ability to Generate Active Income:

This is the foundation of any wealth-building strategy. Without a steady stream of income, it's difficult to invest or grow your net worth. I've focused on developing multiple income streams by investing in my skills and leveraging them in different ways.

My career as a Data Analyst and Front-End Developer provides a stable base, allowing me to earn a good living while constantly learning and growing. Beyond that, I've also built a business as a Digital Creator. This not only provides an additional income stream but also allows me to explore my creativity and build something of my own.

Investing in my skills, both technical and creative, has been crucial to my financial growth. It's not just about having a job, it's about building valuable skills that are in demand. Having in demand skills means people will be willing to pay you money for what you can do for them. This will then enable you to perform every other task required to build wealth.

2. My Ability to Access Other People's Money (OPM):

This might sound controversial, but it's a crucial aspect of financial growth. Leveraging other people's money strategically can significantly accelerate your progress. You can use other people's money to grow your own career, business or assets.

The way to access other people's money is through lenders or financial institutions that manage other people's money. These institutions are in the business of making their clients money by renting out the money. (that is what a loan is.. renting money, and interest is the rental fee. Once you are finished using something you rent, you return it). In order to be trusted with other people's money you must be able to prove that you can return the money and pay rent for it.

For me, this has meant focusing on building a strong credit score/profile. A good credit score opens doors to loans, home loans, credit facilities and other financial products that can be used to acquire assets and build wealth.

Beyond just the score, I've also worked diligently to ensure I have the right affordability and paperwork in place to access bank credit and finance when needed. This isn't about recklessly accumulating debt, but rather understanding how to use credit strategically to invest in opportunities that can generate future returns. It's about having the financial literacy and discipline to use Other People's Money responsibly.

An example:

Back in early 2023, I received a contract to lease out a small building to the state. I did not have my own building, however through my credit profile I was able to secure a building (passing a credit check to sign a lease). To convince the landlord to let me sublet the building, I had to pay for the total 12 months lease upfront. The total of which would equal R120 000. My options were to get the money from my savings and investment account or I could use somebody else's money. So what did I do? I borrowed money from the bank at 12% interest with a total repayment amount of R138 800 (after some extra fees) and paid for the lease. I then charged the tenant R17 600 per month. R11 600 went to paying back the loan and the rest I pocket as profit.

Notice that I had no building and no money, yet through the power of good paperwork I was able to use another person's asset (building) and another person's money (loan) to generate income for myself. That is the power of working on your credit profile and affordability statements.

Book a 1 hour training session on building your credit profile. The consultation fee is R180.

3. Growing My Net Worth through Public Market Investments:

Generating income and accessing credit are important, but they're only part of the equation. True wealth building requires investing in assets that can appreciate over time. For me, this has meant investing in the public market. This could include stocks, bonds, ETFs, mutual funds, or other investment vehicles. It's crucial to do your research, understand your risk tolerance, and develop a long-term investment strategy. Investing in the public market isn't about getting rich quick; it's about patiently growing your wealth over time through careful and informed decisions. It's about understanding the power of compounding and letting your money work for you.

My portfolio consist of my Retirement Account, my Tax-Free-Savings-Account, my Off-Shore account and a small short-term trading account. There are different ways to build your own set-up based on your goals, budget and interests. I mainly invest in low cost index funds, dividend shares and bonds. I then trade commodities, futures and Indices. Your set-up would look different based on your risk tolerance and desired outcomes.

Regardless of the set-up, the goal is to maximize returns by taking advantage of certain long-term and short-term scenarios while considering risks. Basically, we want to grow our money while also earning a minor income.

The sooner you start investing, the better your financial situation will be in the future.

4. Relationships:

This might seem out of place in a discussion about wealth, but it's arguably the most important investment of all. Building strong, genuine relationships with people you trust, love, and can work with is essential for a fulfilling and successful life.

These relationships can provide support, guidance, and opportunities that you might never have found on your own. Networking, collaborating, and simply surrounding yourself with positive and driven individuals can have a profound impact on your personal and professional growth.

For me, investing in relationships has meant building genuine connections with people who inspire me, challenge me, and support my goals. These relationships are invaluable and contribute to a richness in life that goes far beyond financial wealth.

Final words

Building wealth is a journey, not a destination. It requires consistent effort, smart choices, and a long-term perspective. By focusing on these four key areas – generating active income, strategically leveraging other people's money, investing in assets, and nurturing strong relationships – I've been able to make significant progress on my journey to financial freedom and a rich, fulfilling life.. you can do it too.

Happy Investing

-Omega

Remember: Opinions expressed in this article do not and never will constitute financial advice. Every person's financial situation is different, I recommend you speak to a financial adviser about yours