Essential Factors in Long-Term Wealth Accumulation

Long term wealth accumulation is actually very simple. Many people unfortunately want to get rich quick, and that is very difficult. Luckily, the same things that held true in the past still hold true today. Accumulating wealth, and ending up with a solid net worth is not rocket science. Just a few steps need to be done, along with the right habits, and you are well on your way.


There is good debt and bad debt of course. Debt used in a good way can make you a lot of money, whether it be by buying real estate, education, or even starting a business. But anyone that has bad debts can be in trouble quickly. This prevents you from accumulating wealth as money that could be saved or invested simply is wasted. Debt can be very powerful, and a great way to leverage money to invest in worthy projects or ideas, but use it wisely if you want to gain wealth.


Many wealthy people who are born into it, or get rich quickly live an extravagant lifestyle. In reality, for people who have accumulated it, at least in the beginning, this is not the case. One of the best ways to increase wealth is by of course, saving money. When money is saved and a lifestyle with a budget is being lived, it is like increasing income. Of course, people should still enjoy life, but eating at home, or taking the less expensive approach will yield much savings.

More Than Work

Of course having a good job is a good start to wealth accumulation. But most people who have a good amount of money do more than work at a job. This is a trap many people fall into by thinking that a good paying job will set them free. But it is essential to do something with that money, invest in real estate, start a side business, buy equities. Because in reality, once a high income job is lost, most people are back to square one.

No Fear

A lot of people have experienced bust and booms all over the world. Whether it be the stock market or the housing markets worldwide. This is part of the natural business cycle, and in this case, the turtle wins the race. That is to say, stick with it and continue onward. Many people make the mistake of emptying out brokerage accounts and chasing other investments. In reality, when things are at the worst, it is time to invest, that is where the real wealth is created. The best investor, is the one who can take advantage of the worst times, and who thinks with their mind rather than thinking with emotion.

For most people, building wealth will be a long process. Luckily, once the right steps are taken and you get started, it will be very easy to build wealth. The nice thing is, you get a domino effect as well, compound interest really does wonders. So it is important to not only start as early as possible, but to stick with it. This will not take much planning day to day, because once you have good habits it will be second nature, and you are on your way to long term wealth accumulation.

Ching Wei Lee Ching is the CEO and co-founder of iMoney, a leading price comparison website in Malaysia. Prior to iMoney, he was an investment consultant, advising clients ranging from $5 million to $500 million on investment related matters. He is also a CFA & CAIA Charterholder, two prestigious professional qualifications in the finance field.

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