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Oshodi David

29 Nov 2023


Building wealth is a process and it involves several stages. Understanding these stages can help you make better financial decisions and achieve your financial goals. Especially if you are looking forward to financial freedom.

Here are the five stages of wealth building:

Stage 1: Survival Stage

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The survival stage is the first stage of wealth building. At this stage, you are mostly focused on meeting your basic needs, such as food, shelter, and clothing. During the survival stage, just as the name implies, you may not have much money to spare for saving or investing.

However, you shouldn’t get too comfortable at this stage, irrespective of why you find yourself here. To move beyond the survival stage, you will need to focus on increasing your income and reducing expenses. This can be achieved by getting a higher-paying job, starting a side business or a side hustle, or simply cutting back on unnecessary expenses.

Stage 2: Stability Stage

The stability stage is the second stage of wealth building. At this stage, you have enough income to cover your basic needs and have some money left over for saving and investing. You may have a stable job or business, and ideally, you should have developed some financial discipline.

At this stage, you can take advantage of the saving and budgeting features on Ardilla.

To move beyond the stability stage, you need to focus on increasing your income and building your emergency fund or DIB on Ardilla. This will help you weather unexpected financial challenges and prepare for future opportunities.

Stage 3: Growth Stage

The growth stage is the third stage of wealth building. At this stage, you have built up your emergency fund and have started investing in assets that generate income and appreciate in value, such as stocks, real estate, and business ventures.

At this stage, you are mainly focused on growing your wealth and increasing your net worth. You can also take advantage of the portfolio tool on Ardilla to help you track your investments and assets.

To move beyond the growth stage, you must focus on diversifying your investments and managing your risks. This will help you build a robust portfolio that can withstand market fluctuations and generate sustainable returns.

Stage 4: Preservation Stage

The preservation stage is the fourth stage of wealth building. At this stage, you have accumulated significant wealth and are focused on preserving it for the long term. You may have a diversified portfolio of assets that generate passive income, such as rental properties, dividend-paying stocks, bonds and long-term savings with very good returns.

To move beyond the preservation stage, you must focus on estate planning and wealth transfer. This will help you ensure that your wealth is passed down to your heirs according to your wishes and that your legacy is preserved.

Stage 5: Contribution Stage

The contribution stage is the fifth and final stage of wealth building. At this stage, you have achieved financial independence and are focused on positively impacting society. You may donate to charity, mentor aspiring entrepreneurs or support causes that align with your values.

Your focus in the contribution stage should be to leave a lasting legacy that extends beyond your wealth.

You can achieve this by inspiring others to achieve their financial goals, advocating for social change, or creating innovative solutions to global challenges.


Wealth building is a journey that involves several stages. By understanding these stages, you can develop a clear roadmap for achieving your financial goals and building a legacy that extends beyond your lifetime.

Whether you are just starting out or are already on the path to financial independence, it is never too late to start building your wealth and creating a brighter future for yourself and your loved ones.

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