How to Build Wealth: 3 Pillars Revealed by a Former Bank Employee

Former bank employee Nischa Shah reveals three pillars to building wealth and creating a “money generates money” mindset. In an exclusive interview with Business Today, Shah emphasizes the importance of diversifying income streams and shares practical advice for everyone.

The Importance of Multiple Income Streams

During times of economic instability and widespread layoffs, having additional income streams is crucial to maintain financial stability. Shah left her investment banking job to build her personal finance brand. With a YouTube channel boasting nearly 1 million subscribers, Shah earns income through YouTube AdSense, real estate investments, speaking engagements, brand partnerships, and affiliate marketing.

The Three Pillars of Wealth Creation

1. Active Income

Shah states, “The first way to make money is through active income.” This is the primary income stream that requires dedicating the majority of one’s time and effort. Initially, this income stream will be the largest, but over time, it should become the smallest as other income streams surpass it. Shah emphasizes the importance of setting aside a portion of the active income to generate passive income through other means.

2. Business Income

The second pillar of wealth creation comes from starting a business or engaging in side hustles. Shah advises individuals to start with their existing skills or hobbies. For example, as a former accountant and bank employee, Shah started by answering financial questions from friends and family. In her first YouTube video, she discussed her real estate investment strategy. Shah suggests considering personal strengths, passions, and the needs of the world when choosing a business model.

3. Investment Income

The third pillar, investment income, is the key to long-term financial growth and profitability. Initially, investment income may only account for a small portion of total income. However, as one progresses, the returns from investments become significant. According to Shah, “It’s the easiest form of passive income available.” Anyone can open a brokerage account, select indices to invest in, and buy stocks. Shah highlights three key factors for successful long-term investments: diversification, starting early, and consistency.

By following these three pillars, Shah believes individuals can create a sustainable income structure that leads to financial freedom and a comfortable retirement.

This information was originally sourced from Business Today.

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