Wealth creation means anything which could be owned and controlled, and have

monitory value or have the potential to create the monitory value. Assets could be
tangible like a car, house, furniture, machinery etc. or intangible like goodwill,
copyrights, patents, trademarks etc. For a company, the land, the building,
machinery, inventory etc. are the wealth creation strategies. But the employees are
not assets, though they have the potential to create monitory value. Employees are
not assets because the company don't own them or have sufficient control over them.
They are called as resources of a company.
Some great people who understand finance in great depth see assets in a different
way. For example: the author of world famous book, rich dad poor dad, Mr. Robert
Kiyosaki says that, anything which gives profit is an asset and others are
liabilities. Wealth creation example: the house in which an individual life is his
liability as that individual is not earning anything out of it, instead, he is
paying for its maintenance and may be loan EMIs. This house will behave as an asset
when that individual sells it with a profit. A house which is giving rent in the
pocket of the owner is an asset which can be termed as one of the best ways of
wealth creation strategies and tactics.
In accounting, Assets = Liabilities + Capital. Assets are seen as current assets
(have cash very handy; liquid assets) and fixed assets (property, plant, and
equipment; PPE). Assets can be classified as one of the type of creating wealth for
long term or as a part of your retirement planning.
WEALTH CREATION STRATEGIES AND IDEAS:
How to build wealth? This is one of the biggest question where people are looking
for the answer. Here we will present various ways of wealth creation strategies as
well as wealth creation tips which will help you in managing your personal finance
as well as for retirement planning. Wealth creation and wealth accumulation is the
dream of all the people. Here are few of the wealth creation ideas by which people
can create wealth and accumulate wealth for their future protection.
1. Starting a Business:
These days, it seems like there is an entrepreneurship boom in many places.
Everyone seems to start or wants to start, at least, his own business. Business
could be a very good asset if it is implemented well. For return
on investment, the sky is the limit. Though business is a very sensitive thing to
deal with as risks are very high and it requires heavy involvement of business
owner, but if somehow it is set, then nothing is better than a business when it
comes to wealth creation as well as accumulation.
2. Deposits and Investments:
Deposits and Investments are those assets which make money grow without much
involvement of the owner. Most life insurance products are designed in such a way
that the buyer could accumulate the money to the maximum. For some policies, wealth
accumulation is the prime focus. The deposits also help in increasing the money.
Typical examples of assets under this head are - fixed deposits, recurring deposit.
Debentures, bonds, and mutual funds. Investing in gold and commodities is also a
nice way to grow money as they are less risky as compared to the stock market
investment. This is one of the safest and low risk wealth creation strategy.