Quora Answer: How Does Someone Build Wealth from Little Resources?

The following is my answer to a Quora question: “How does someone build wealth, when he has little to begin with?”

Slowly, and with great discipline.  You need wealth to generate wealth, and the more assets you have, the more options you have make more.  As such, your priority in the beginning is to work on managing your expenses and debt, and look to save as much as you are able.  Once you are comfortable living with a certain amount, or have managed to increase your income, perhaps through advancement in career, you can look to small investment plans.

In all that, invest in yourself, through learning and networking.  Knowledge equips you to identify and exploit opportunities.  Networking allows you to find these opportunities.  As you move higher in the economic pyramid, and you can afford more expenditure, invest in an accountant, a financial advisor, and later, an investment banker.  Look for the best, and have some stringent criteria to weed out the less suitable ones.

In tandem with this, consider creating either a trust or a company to hold your assets distinct from you.  This mitigates your tax liability, and grants you a measure of protection from creditors.  From here, it gets easier and easier to acquire wealth.