Building wealth from little has never been more accessible than it is now.But first I would like to clarify my definition of wealth in this case. Wealth is the cash flow that comes from other sources apart from your income.

Having a high income or massive cash flow is irrelevant when it comes to wealth creation. This is because (for most people) your income supports your lifestyle. If you invest a portion of your cash flow in a good investment vehicle you will be able to start creating wealth for yourself & your family.

But what qualifies as A good investment? A good investment is something that yields/ will yield an increase greater than the seed cost of the initial investment i.e. you get more money from your investment than the initial amount you invested.  

There are loads of different ways to invest, here are three proven vehicles you can invest your money in order to start building wealth now. 

1. Investing in the stock market 

2. Investing in real estate 

3. A profitable business model

1. Investing in the Stock Market 

When you invest in the Stock Market, you buy part or all of an asset, e.g. companies, property or commodity with the hope that the value of the assets will increase significantly with time and/or it can generate an income for you via the miracle of compound interest. 

Where you choose to invest is heavily dependent on your goals.

Short term goals of less than a year are best kept as cash in a high-interest savings account or premium bonds.

Cash ISA's and Stock and shares ISA's are good ways to save and invest for mid-term goals of (minimum of 4 to 10 years). An invested Lifetime ISA's can be used to save towards buying your first home. 

For long term goals such as retirement (which maybe 10 to 40 years away), investing in the stock market via private pensions (such as your workplace pension, or a self-invested pension plan), lifetime ISA's are the ways to save towards the future. This is because little cash deposited and invested over many years can grow substantially due to the power of compound interest.

How and in what you choose to invest your money depends on your values and your risk tolerance. 

There are three main classes of assets when investing in the stock market.

They include Leaving it as Cash, Buying Bonds or Buying Stocks: The ratio of which you buy cash:bonds: stocks is how you allocate your assets.

The best time to invest in the stock market is when no one else is., and that’s usually when there is a recession. The second best time is Now. And you don’t need much money to start.

If you have never invested before (outside your workplace pension), you can start investing in a stocks & shares ISA. Read more about them here.

2. Investing in Real Estate 

Buying real estate in a good location and at an excellent price is also an excellent way to cash in on the property market. Property investment has proven to be one sure way for people to build personal and generational wealth from little earnings.

Find out out more about how to get started investing in real estate in part 2.  

3. Investing in your Business

Starting the right business could turbocharge your earning power, create recurring income and passive income for you and your family. If you have the patience to put in the work, you will reap the returns on your capital. 

You can start a business around the interest, skills or talents you already have or one that compliments your purpose. The call to entrepreneurship needs no prior experience except commitment. 

You don’t need to solve a global crisis like global warming to be successful neither do you need to create the next social media platform, although that would be pretty cool if you did. All you need to do is address a specific pain for a small category of people and solve it very well.

Find out out more about how to get started on your business in part 3.