I was once asked what we can do to create a pyramid of money or wealth pyramid. On deeper introspection on how I created my own wealth pyramid and how I helped my clients to create theirs, I found that a pyramid can be created if you focus equally on three sides of the pyramid. In the case of the wealth pyramid, the three sides denote Necessity, Pleasure (that includes Charity) and Savings (or money saved for a rainy day). 

If you have not focused on any of them, the wealth pyramid cannot be created. When you have focused on each of these and have created the walls of the pyramid, then comes the time to fill the pyramid with investment money. 

When you know you have enough money for a rainy day (typically 3-6 months of the expenses on a minimum side and 3-6 years of expenses on the maximum side), then you feel confident of taking calculated risks and feel ready to making investments that can yield appropriate returns in the short and long run to achieve your...