How to create wealth without financial capital

Beside financial capital, one needs mental and relationship capital to truly create lasting wealth.

The usual practice, especially among the Chinese, is to bet some money on lottery tickets. Who knows you might be the next millionaire who strikes the jackpot? However, don’t you think it is false hope?

The poor think that they need a lot of cash to make tonnes of money. And winning the lottery is the ticket out of poverty.

The common myth among the poor is that you need financial capital to be wealthy. Pure logic is that it takes money to make money.

But you need to look further and deeper, so you can see through the misconception. Unless you are born with a silver spoon, it takes more than money to create wealth.

If you need thousands to make hundreds, millions to make thousands, billions to make millions, then how come the richest people on earth today can do it in such a short time? Of course, you need financial capital to generate income, but that’s not the only ingredient.

Watch the video to find out what Bill Gates and Warren Buffett still do nowadays even when they are already the wealthiest people living on earth.

Recognise the fact that a lack of financial means doesn’t hinder your path to accumulating wealth. ( pic)

Some people invest RM100,000 to start-up a cafe only to lose everything a few years later when the business fails.

Sometimes you may have enough funds to set up a cafe and run it for many months. But you may lack the mental capability or the know-how of operating a profitable restaurant.

Many years ago, a senior manager of a factory quit his job and joined an insurance agency. He was smart and had no problem learning the technical knowledge of life insurance.

He had the product knowledge and role-played well during the training session. However, after many months in the business, he only managed to sell a few policies. The commission was not enough to sustain him, and he finally quit the business.

Later, it was learnt that what he lacked was not mental capital, but relationship capital.

During his working years, he was known as the jerk, and someone who lacked integrity. When you make a lot more enemies than friends, how do you expect people to trust you and pay you money?

It is likely that his circle of acquaintances laughed at him when he asked for their “support”.

Creating wealth takes more than financial capital. You also need mental capital and relationship capital. Most times, your money problems are due to the lack of the latter.

How to create wealth when you have very little financial capital

How to create wealth when you don’t have much financial capital yet? The poor use this as an excuse so they can bet more on lottery tickets.

What would happen if you stopped giving excuses, and took charge? Recognise the fact that a lack of financial means doesn’t hinder your path to accumulating wealth.

When you have the other ingredients, you can get funding from many sources: crowdfunding, P2P financing, angel investors, venture capitalists, bank loans, equity funding, and more.

Now, the smarter way is to invest in yourself to increase your mental and relationship capital. Then the problem of funding will take care of itself.

How do you do that starting today?

When you want to venture into a specific field, read the top five bestselling books on that topic. Study how successful people did it. Find your mentor in the area. Can you subscribe to any courses to learn it fast?

In relationship building, you need remarkable social skills. And those skills are learnable, not just “inherited”. Can you provide value to the people who can help you? Give them something first before asking for any return.

Can you invest in these areas? Even Bill Gates and Warren Buffett still do.

Bill Gates takes one week, twice a year to isolate himself in a secret cabin to read dozens of books. Meanwhile, his good friend Warren Buffett still spends 80% of his day reading!

It never stops.

This article first appeared in

KC Lau’s first book Top Money Tips for Malaysians has sold thousands of copies. He launched the first online personal finance course specifically designed for Malaysians, entitled the Money Automation System. He also co-founded many other online financial courses including the Bursa Method, Property Method, Founder Method and REIT Method.