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Home » Wealth Creation Plan in 2024: Check Process, Plan & Benefits

Wealth Creation Plan in 2024: Check Process, Plan & Benefits

Financial freedom is available to those who learn about it and work for it.

Wealth is defined as abundance, especially in terms of money.  The goal of wealth creation is to make this abundance a reality.  It includes assets like real, and mutual funds, minus any liabilities such as loans. However, wealth is relative and depends on our benchmarks and dreams. If you have enough resources to fulfill your dreams, you can consider yourself wealthy.  

For instance, if you dream of owning a 4-BHK flat in a specific location, achieving these dreams requires significant wealth.  If you don’t currently have enough wealth to fulfill these dreams, focus on growing your wealth to achieve your financial goals. 

In this blog post, we will explore the meaning of wealth creation, its importance, and some strategies that can assist in successfully building wealth. 

What Is Wealth Creation?  

One cannot create wealth by just earning more money.  You have to invest your savings to create a parallel stream of income.  This process of investing your saved money to grow your wealth by choosing investments that align with your financial goals is called wealth creation.

For sufficient wealth creation,  apart from choosing the right investment,  you also have to give your investments sufficient time to grow.  You need to maximize the benefit of compounding by investing as early in life as possible.  Early starters have the opportunity to stay invested longer,  which makes it easier for them to reach various financial goals.

Another way to ensure you achieve your wealth creation goal is to increase your investments in line with the increase in your income.  If you are a salaried person, you would get an annual increment. 

If you increase your monthly investments by the same proportion as your annual increment every year,  you will be able to save significantly more. After all,  how much you invest matters more than your returns especially when you are starting your investment journey.    

As the type of goal and time horizon varies from one individual to another, there is no single guaranteed way to create wealth.  For example,  if you are investing for the long term,  equity-oriented investments are more suitable as compared to Debt-oriented investments.  On the other hand,  Debt and Hybrid Mutual Funds are more suitable for short and medium-term investment goals. 

What Is The Objective Of Wealth Creation? 

The importance of wealth creation can be summed up by a statement made by legendary investor Warren Buffet – “If you don’t find a way to make money while you sleep,  you will have to work till you die”.  

What he meant by this statement is that one of the key objectives of wealth creation is the ability to generate wealth passively by investing money that has been earned previously.  This way savings grow over time and add to the wealth of the investor.  

At the most basic level,  wealth creation is just about growing your money to achieve various short,  medium,  and long-term financial goals.  Short-term financial goals could mean saving enough money for a vacation or to buy the latest iPhone.  These are typically goals that need to be achieved within 3 years or less.    

Medium-term goals are usually investment goals that have to be achieved within a period of 3 to 5 years.  Examples of such wealth creation goals can include saving for a new car,  saving for the down payment for a new house,  etc.    

On the other hand,  long-term goals such as ensuring sufficient retirement savings can easily have an investment horizon that extends into multiple years and even decades.  In this case,  you need to ensure that you create enough
wealth during your working life to support your post-retirement financial needs.  

Now as there can be multiple objectives of wealth creation along with different time horizons,  you have to implement different strategies to achieve such varied goals.

Process of Wealth Creation

An individual might have several financial goals at a given time.  In addition,  he may possess multiple short-term and long-term financial goals.  For example,  he may want to save money to purchase a new car or make a down payment on a new house.  Therefore,  he cannot grow his assets unless he fulfills these goals.  

So, to create substantial wealth, an investor needs to follow the appropriate procedure to accomplish every financial plan. 


Here is the process for wealth creation. 

Selection of market

Investment in a suitable scheme is crucial for the growth of wealth.  At the same time,  an investor must select the appropriate market or investment plan to invest the savings to generate good returns.  In addition,  the investor should analyze the risk factor involved in a scheme to mitigate the losses on the investment.  

On top of that,  the investor needs to ensure more profits or returns to increase his assets.  Further,  the reduction of liability is one more critical aspect of the growth of wealth.  It could be ensured by paying off debt. 

Terms of plan

An investor must decide the terms of the plan to invest in his funds.  There are various terms for plans known as short-term,  medium-term,  and long-term.  To opt the long long-term planning,  an investor should be consistent in paying the premium,  or all his efforts may need to be revised. 

Evaluation of saving

Before investing in a plan,  an investor must evaluate his savings since all plans are unique.  No two plans can be said to be altogether identical.  Every plan requires a different kind of saving.  For example,  an investor needs at least INR 20, 000 monthly to invest in SIP mutual  funds if the goal of the investor is to create around 45-50 lacs in the next ten years.  Thus,  the plans depend on the saving capacity of an investor.  

Benefits of Wealth Creation 

Wealth creation is not only necessary for individuals but also offers several benefits.  Mentioned below are some benefits of wealth creation-

Passive Income

Every individual’s mind is eased by having an alternate source of money.  However,  unless and until one puts their money to work,  they are unlikely to create a passive income model.  Investing in wealth creation is ideal for creating an alternate source of income,  be it for a homemaker,  a freelancer,  or someone just looking to retire rich. 

Retirement Planning

Wealth creation helps in accumulating wealth over time whose benefits are realized post-retirement.  It assists in the creation of a separate fund that can be used only for retirement,  allowing an individual to live a healthy and stress-free life. 

Achieving Financial Goals

Every other person has a financial objective or desires they want to achieve in the future.  Wealth creation helps in meeting these objectives within the timeframe allotted. 

FAQ: Wealth Creation In 2024

Can the power of compounding positively influence wealth creation?

Yes,  the power of compounding can have a major effect on how much income is generated.  You may potentially build up a significant amount of wealth over time,  even with very small beginning contributions,  by harnessing the power of compounding via disciplined investing and taking advantage of a longer investment horizon. 

How do I choose the right wealth creation strategy for me?

The right wealth creation strategy will depend on several factors,  such as financial goals,  risk tolerance,  time horizon,  and individual conditions.  It is important to carefully evaluate and understand each strategy,  seek professional advice if needed,  and choose a strategy that aligns with your unique financial situation and long-term goals. 

What are the potential benefits of diversification in wealth creation?

Diversification in wealth creation can help mitigate risk by spreading investments across different asset classes or industries,  reducing the impact of poor performance in one investment on the overall portfolio. 


Creating wealth is a goal that many of us aspire to achieve.  Whether it’s through investing,  entrepreneurship,  or other means,  the process of wealth creation can be both exciting and challenging.  

By understanding the meaning of wealth creation and setting clear objectives, you can develop a plan to reach your financial goals.  The process may involve taking calculated risks,  making smart investment decisions, 
and staying disciplined in your approach.  

However,  the benefits of wealth creation are numerous – financial security, independence,  and the ability to live life on your terms.  As we look ahead to 2024,  now is the perfect time to start taking steps towards creating wealth and securing a brighter future for yourself and your loved ones. Get in touch with Sustvest today for making an informed financial decision.