There are hundreds of resources available that claim to help you build wealth. From smart stock market strategies to investing in startups as a venture capitalist, there are numerous ways to make your money work for you.
So how do you know which ones really work? Here are five tried and strategies for building wealth, that have stood the test of time.
Start Your Own Business
One of the best investments you can make is to build your own business — your own legacy. As economist Thomas Friedman stated, instead of just finding work our generation has to invent jobs. More and more traditional jobs are being taken over by computers, systems and technology, which means we’ve got to get creative in our approach to making money.
This is where it helps to immerse yourself in the Share Economy and create your own side hustle or full-fledged business. There’s no better way to build wealth, and set yourself up for success than investing in your own business.
Invest in Real Estate
While investing in real estate is still tricky and comes with a good amount of risk, it’s still a solid way to build wealth. If you adhere to Warren Buffett’s rule “be greedy when others are fearful, and fearful when others are greedy” you can potentially make yourself very rich through real estate.
Even though the housing market fell drastically in the last few years (much like the stock market), it’s still a good investing avenue due to the fact that people will always chase the American Dream. Owning a home is the pinnacle of being successful in life.
There will always be individuals and families needing homes to rent or buy, and you can be the person who helps them achieve that dream. A home is a physical asset, so it’s value will always level out in the end.
Pay Yourself First
Have you ever heard the “pay yourself first” strategy? This concept basically means you set aside money into savings or retirement funds first, before you pay any of your regular bills. Paying yourself first is the key to building wealth!
Instead of making your creditors and landlord your priority, you need to put yourself and your financial goals at the top of the list.
This isn’t to say that you can ignore your financial responsibilities, but it does mean that you should rearrange the priorities so you’re building wealth for yourself and your family, instead of padding someone else’s pockets.
Take Calculated Risks
The real secret to building wealth, is taking calculated risks. This can be something as simple as enjoying your hard-earned money by spending it, or something more complicated like investing in an online business venture.
No matter what, if you don’t take risks with your money, you’ll never accumulate wealth, and you’ll certainly never get rich. And becoming rich and wealthy, isn’t a bad thing, so don’t let the media or anyone else influence you into thinking otherwise.
Take calculated risks and watch them pay off in big dividends!
View Wealth as a Long-term Goal
Building wealth the right way, is not a get-rich-quick-scheme, it’s a goal that will take patience and discipline to achieve.
But by using these simple strategies, you’ll be able to accumulate wealth, and have it last through retirement and into your family’s future. If you view investing in your future as a long-term goal, you’ll already be on your way to building wealth.
What’s another smart way to build wealth?