Simple, effective strategies, when applied with discipline can yield great results. A fitting example is the discipline with which millionaires apply strategies to build wealth and become rich. In difficult times they don’t beg, borrow or steal. They simply save, every week, every month and every year. The accumulated savings are then invested wisely to give good returns. Slowly and steadily, this helps them build their personal wealth and gives them a secure and safe future.

A part of everything you make is just yours

The most important rule they follow is about how a part of everything you make is just yours. You might be a bit confused with this statement, because what you make is meant to be all yours. Not really. You have expenses such as insurance premiums, house mortgages, utility bills, transportation costs, groceries and other assorted expenses. When you put money into these expenses first, before keeping a sum aside in your savings, you will not be left with anything to save. Instead, keep 10% of whatever you earn upfront and figure out how to pay your expenses from whatever is left.

All this sounds well and good, but looking at today’s economic situation, not just in one country, but also all over the world, it is not surprising that many of you will question this principle. During such trying times, how do you make an investment which will yield a simple return, let alone a good hefty return?

Wise to invest in commodities

 Major economies are on the verge of collapsing. Taking inflation into account, in year 1, if you earned Rs. 4,000 and Rs 5000 in year 2, it might turn out that you earned less in year 2 than in year 1. Hyper inflation will affect investments and this is something you must look at. Having knowledge about the current market and economic situation is always an advantage.

So isn’t currency real money? Not really.  Real money is gold and silver, precious metals that are bought and sold on the market. Currency on the other hand, is printed-paper that has a promise to pay written on each note. You shouldn’t spend all your savings on gold and silver, but it is advisable to invest at least a part of those savings in precious metals.

Making wealth is to not lose money

Depending on the current price, you can decide what ratio of gold to silver works well for your portfolio. The way governments everywhere are printing money is causing a lot of problems that even they cannot foresee. Despite claims that the global economy is out of the slump, a bigger recession will follow that will have a greater impact on the global economy.  It is wise to invest in commodities that are valuable no matter what.

As Warren Buffet said, Rule 1 of making wealth is to not lose money, and Rule 2 is to look at Rule 1. Educating yourself and knowing your options are important, especially during a time when the economy seems to be on a seesaw. There have been cases when the government of a country has confiscated savings in banks, after those banks have collapsed. If you would rather not lose your money and have it confiscated in such a manner, it would be wise to start exploring different investment options.