Unless you have been completely ignoring the financial news of the day (which is a good thing), you would be aware that there is a massive credit crunch that is underway in the financial markets with serious implications for real-estate as well as business loans. As loans become harder to come by, it affects business expansion, home-ownership, car-buying patterns, commercial office construction and so on. In other words, hardly any area of the economy will escape unscathed. So how does it affect your wealth building capabilities?

Occasions such as this brings to front a few of what we consider are the basics of wealth building that every serious wealth builder must adhere to:

1. Do not carry credit-card, student or automobile debt. Try and pay off home mortgage as well. Do not indulge in any form of short-term debt for your business as well.
2. Develop extra income businesses. Do not rely on just your employment or one business to carry you through tough times. Develop 2-3 other sources of income, so that you are never short of fresh money coming into your coffers.
3. If you have a career, ensure that you raise your value to your company to a level where you are not the first person who is shown the door! The best formula for that is to show that your work output is at ten times the investment the company makes in you.
4. Invest your money with the help of some expert investment newsletters. Let these terrific writers guide your portfolio to success. Always ensure you have enough liquidity in your accounts to have cash for emergency situations.

Following these simple guidelines is likely to help you weather most economic corrections, including sudden loss of a job or a stock market crash.

Importantly though, it will help you keep your focus on further improving your businesses and investments. Economic corrections are opportunities to buy valuable companies at low prices - the kind of move that creates multi-generational wealth once the economy returns to its feet.

Liquidity also helps you in making your purchases without requiring credit, as well as allows you to grow your business at the most opportune time. You can hire the best employees when the market hits a low, get terrific deals on almost all commodities and finished products, and prepare yourself for when the economy inevitably turns up.

Follow the four pillars to a wealthy life, and most economic events will leave your largely unscathed!