How much you earn is important, of course, but what really decides how much wealth you have is a function of your asset allocation, early start, being able to sit tight – over long periods of time. Let us accept one very important aspect of wealth creation: IT IS SIMPLE.

However it does not mean it gets done!! Like the morning walk – it is simple of course, but it does not get done.

What really keeps a person poor (or not so rich)…..

1. Spending on things to IMPRESS friends, relatives, colleagues, neighbors..very quickly you will have things, and no money.

2. If you invest for your friends, cousins, in laws to meet their sales deadlines remember you will have ‘financial products’ that you neither understand nor need. This is worse than the earlier one.

3. Do you invest to minimize boredom or maximize returns? To minimize boredom there are a lot of other things that you can do.

4. Have you maximized your earning or have you chosen a job that is – easy, near your house, have a lot of friends, ….be clear.

5. Do you have a house far, far bigger than what you need? If you are newly married you need a 1 bedroom hall kitchen…over paying rent or EMI for a house is a big bane.

6. Try using more public transport and less of your own car.

7. With your old investments are you being foolish, stubborn, patient or lazy? That will decide on how serious an investor you are.

8. Wealth is relative. Goals are in absolute terms. Know the difference.

9. Earn well. Spend less. Invest smartly. Insure risks. Keep learning.  – the virtuous cycle of wealth.