Common wealth-building routes include: Building a profitable business Investing in diversified financial assets Owning productive real estate Developing valuable skills and increasing earning power Owning intellectual property or other productive assets Consistently saving and investing over long periods Most sustainable wealth-building strategies involve owning assets that can produce income or appreciate in value.

Examples include: Dividend-paying investments Bonds and other interest-bearing investments Rental property Businesses Royalties from intellectual property Certain funds and other income-producing assets However, "passive income" does not necessarily mean no work. Many assets require research, management, maintenance, capital or ongoing oversight.

Compounding occurs when your investment earnings generate additional earnings. For example, if you invest ₦1 million and earn returns, future returns can be earned not only on the original ₦1 million but also on previous earnings. This is why time is one of the most powerful ingredients in wealth creation.

There is no universal percentage that works for everyone. A common starting point is to aim for 10% or more, but your actual target should depend on your income, expenses, debt, emergency savings and financial goals. If 10% is impossible today, start with what you can afford and gradually increase it. The important thing is to develop the habit of consistently spending less than you earn.

Inflation is a sustained increase in the general level of prices. If your money earns 3% but prices are rising by 10%, your purchasing power is falling even though your account balance increased. This is why investors often consider real returns, returns after taking inflation into account.