For many people, the idea of generating a significant amount of wealth over their lifetime seems like a distant dream, not least because we are currently going through one of the worst wage squeezes in modern history.
However, building a good amount of wealth is not as difficult as many people think. It requires a combination of patience, research and adopting the right mind-set and practices over a long period of time. Here are some considerations to get you started.
Amongst the doom and gloom of the financial news and economic forecasts, it’s easy to forget that there are plenty of financial experts around the country who can help you to make the most of your money.
Established experts like Tilney are on hand to help you set up your own unique financial plan for the future. They can point you in the right direction in terms of finding the best option to build your wealth, looking at factors like income, financial goals and retirement, amongst others. They will charge a fee, but the potential returns and savings could outweigh the fees..
Investing can be one of the most effective ways to build a good amount of wealth over time. Of course, no investment is ever guaranteed to bring in a profit and you can also lose money so it is wise to be cautious.
That being said, the options are plentiful, ranging from bonds to stocks and shares to property. You will need to look into developing your own investment strategy, and bear in mind that more diverse investment portfolios are less risky and have a greater chance of generating a profit over time. The returns you get from successful investments are likely to far exceed returns from any savings account.
People do not only gain wealth because they know how to make money, it’s also because they know how to hold onto their money. You should always have a comprehensive budget in place which takes into account variable and non-variable costs to ensure you never go overboard on spending.
If having a budget saved you just £40 per month, you would save nearly £20,000 over 40 years which is hardly a pittance!
These are some of the basic yet effective ways of building your wealth over time. It takes patience and a long-term strategy to succeed, so be sure to do some further research to find the best way forward for you.
Sources: tilney.co.uk / tuc.org.uk