wealth creation can mean a lot.
To others, it may mean increasing the level of money, getting
rich, or investing to increase
money.
Entrepreneurship, Wealth Creation is the combination of all financial
planning and investment advice for the betterment of the assets owned
by an individual, family, or company. It includes planning for the future
like getting married, having children, the costs of education, tax
services, estate planning, and retirement planning.
wealth creation is also defined as producing a
supply of assets like stocks, gold, cash, bonds, and real estate that
are considered sufficient to generate a stable source of income to
help in livelihood.
Robert Kiyosaki once said, "Don’t work for money; let money
work for you."
Importance of wealth creation
Regular source of income.
–Good investments provide a source of income;
Healthy Retirement.
–Building wealth is a requirement for a healthy and happy retirement.
Goal-based investing.
–the first step in wealth creation is determining your goal.
Ideal Wealth Creation Plan
1. Create a budget
2. Invest rather than just saving.
3. Understand the impact of inflation on saving.
4. Invest in appreciating assets
5. Become Debt-free.
6. Cut on unnecessary expenses
7. Don’t mix insurance with investments
What Is Budget?
• Budget is defined as the estimation of income and expenses over
a period of time.
Creating a Budget in Five Steps
1. Figure out your after-tax income.
–If you get a regular paycheck, the amount you receive after all the
deductions, like loans, insurance, etc., is your after-tax income
2. Select an appropriate budgeting plan.
– The budget should be able to cover all your needs.
3. Track your progress.
–It is essential to track your progress constantly.
4. Automate your savings.
–Always automate so that the money you've saved for a particular purpose
goes with minimal effort on your part.
5. Revisit your budget as needed.
–You'll never know when to change your budget again
Investment
• Investment is an asset or item gained to appreciate and produce
income.
Categories of Investment
1. Ownership Investments
–a type of investment that assets are owned and purchased by the investor.
–Examples include stocks, real estate properties, bullion, and others. Having a
business and funding it is also an example.
2. Lending Investments
The money you invest is used to fund banks to give loans to other people and
the government to fund some projects.
3. Cash Equivalents
– These are liquid investments that can be converted into cash with a low level
of risk.
Reasons to Start Investing
● To Keep Money Safe
● To Grow Money
● To Have a Stable Income
● To Achieve Financial Goals
Inflation is the increase in the prices of goods and services in a
particular economy.
Philippine national economy composed of:
1. Business Enterprises are said to be the leading provider of
goods and services for the people.
2. Households consume goods and services
Three Major Economic Sectors
1. Industry sector
–where the automotive, textiles, electronics, and food processing are the
main products
2. Service Sector
–focuses on construction, transportation, wholesale and retail trade,
communication, insurance, and financing
3. Agriculture Sector
–which is the primary provider of food resources in the Philippines and in
other countries.
economic freedoms, like free competition, free choice
of investments, and interaction between demand and supply,
determine prices.
• Demand is the consumers' willingness to buy goods and services
at a given price, place, and time.
• Supply is the consumers' willingness to sell goods and services at
a given price, place, and time
Fundamental Economic Problems
• Scarcity – all countries have economic problems. We have
economic problems because our resources – money, materials,
and machines – are limited while our human needs are unlimited.
• Unemployment – is the most significant economic problem in our
country. People who are abled willing cannot find jobs. Hundreds
of thousands of Filipinos like to work in other countries for lack of
job opportunities in our own country.
• Poverty – the grim faces of poverty are all around us. Grimy
individuals, young and old, are begging in busy streets
Productivity is the amount of output
Production is a function of its inputs
Development Growth Theories
• Laissez-Faire Theory – this theory explains that the government
should not interfere in economic activities. It is an absolute freeenterprise economy.
• Keynesian Theory – states that the government should play a key
role in economic development, especially in low countries or those
with depressed economic conditions.
• Ricardian Theory – this means that agriculture plays a significant
role in economic development.
Harrod-Domar Theory – the theory states that physical capital, like
machines, are the key factor in achieving economic growth.
• Kaldor Theory – this theory states that the use of advanced
technology in producing goods and services has been responsible
for developed countries’ economic success like the United States.
• Innovation Theory – this stresses the role of innovators or
entrepreneurs in economic development.
• Non-Economic Theories –Their key components are political
stability, efficient public administration, open society, and positive
cultural values.
Rewards and Opportunities
–entrepreneurs can make money
–be your boss
–can express your creativity
• Risks and Demand
–risk of failure
–long hours of work
–unwanted responsibilities
MSMEs strengths and weaknessinclude:
1. **Job Creation** – MSMEs provide significant employment opportunities.
2. **Low Capital & Flexibility** – They require minimal capital and can easily adjust, expand, or
close.
3. **Niche Markets** – They serve specialized markets that larger businesses may overlook.
4. **Income Distribution** – MSMEs spread income by creating jobs.
5. **Local Resource Use** – They support local industries like handicrafts.
6. **Export Contribution** – MSMEs help boost exports in various sectors.
7. **Entrepreneurial Growth** – MSMEs nurture new businesses, allowing them to grow into
larger enterprises.
global trade organizations:
1. **WTO (World Trade Organization) ** – Ensures smooth, predictable, and free global trade.
2. **ASEAN (Association of Southeast Asian Nations) ** – Promotes economic growth, social
progress, and cultural development in Southeast Asia.
3. **AFTA (ASEAN Free Trade Area) ** – Facilitates regional tariff reductions within ASEAN.
4. **APEC (Asia Pacific Economic Cooperation) ** – Promotes economic growth, cooperation,
and trade in the Asia-Pacific region.
Key Traits of Successful Entrepreneurs
01Vision
Ability to see opportunities where others see challenges or risks.
02Resilience
Capable of bouncing back from setbacks and persisting through difficulties.
03Adaptability
Willingness to adjust strategies based on market changes or feedback.
04Decisiveness
Ability to make timely decisions, even with incomplete information.
05 Networking
Establishing connections that foster collaborations and open doors to opportunities. Financial
Savvy
06 Understanding of financial principles to manage resources effectively and sustainably.
07 Customer Focus
Prioritize understanding customer needs to create products or services that deliver value.
08 Innovation
Constantly seeking better solutions that enhance productivity and drive market growth.