Tags: wealth | build | enhance | money

6 Tips to Achieve Your Quest for More Wealth

pink piggy bank with glasses
(Oleg Dudko/Dreamstime)

By    |   Monday, 22 April 2019 08:45 AM

A majority of Americans doesn’t even have $1,000 in a savings account, according to a survey by GOBankingRates. Another survey by Bankrate revealed that most Americans don’t have enough savings to cover a $1000 emergency. I hope you’re not one of them. However, if you’re, it’s not too late to re-strategize and live a debt-free and purposeful life.

Building lasting wealth and becoming financially independent don’t just happen. It requires concerted effort, discipline and sheer determination in savings and investment.

If you’re finding it difficult to save and invest, here are six tips that will assist your wealth building quest:

  1. Adopt Auto-Withdrawals

Insufficient paycheck, rising household expenses, unexpected financial emergency and a whole lot more are among thousands of excuses life presents to us for our inability to make meaningful savings. Even when life is somewhat not challenging, some people still find it difficult to save.

One of the ways you can enhance your saving habit is to set up auto-withdrawals which allows you to make weekly, quarterly, semi-annual and annual deposits to your savings account. This is usually stress-free since you only get notifications about what transpired hence saving you from thousands of factors that’ll have prevented you from making such savings.

  1. Invest in Your Savings

Just as it’s very necessary to save, it’s equally very essential to make sure that the funds in our savings account doesn’t just lie dormant especially when the interest rate is very low. Personal savings can actually assist you get through with emergency situations since funds are readily available.

However, a savings account can’t avail you a fair interest rate when compared to long-term financial products like CDs or mutual funds. You should be able to know how much is too much to be in your savings account. Hence while making personal savings, also remember to invest in long-term financial products because they serve as good incentives for saving.

  1. Go for Investment Loans

Investment loans make funds available for investment purposes. This kind of loan is better than loans for meeting emergency situations and short term expenditures because investment loans, with all going as planned, can guarantee return on investment. Equipment financing, mortgage loan, home equity, business loan, investment property loan and a lot more are worth considering.

However, these are smart tips from ASIC when considering investment loans;

  • Shop around for a loan that meets your needs. Look at the interest rate, fees and other features, like a redraw facility or the ability to repay the loan early.
  • If you are borrowing to invest, it's important to make sure your investments are diversified. Diversification will reduce your investment risk and leave you less exposed to a single economic event, so if one business or sector you've invested in fails or performs poorly, you won't lose all your money.
  • The less diversified your investments are, the higher the risk. It is risky to borrow to invest in one company, one property or one industry sector. Borrowing to invest is high risk and you should seek professional financial advice to make sure this strategy is right for you.
  1. Embrace Financial Budgeting and Planning Practices

You can’t build lasting wealth by being extravagant. People who are serious about having meaningful savings and making wise investments usually have frugal lifestyle. Embrace financial discipline by conforming your spending and savings according to your budget.

This will assist you engage in unnecessary expenses, allows you to achieve short and long term goals, save you from going into debt and enables you pay bills conveniently and promptly.

  1. Seek Mentors, not Capital

Sometimes, we just need to be under the tutelage of experts or mentors to get basic knowledge of businesses and other investment opportunities. Without vital ideas, knowledge and advise, one can easily make unwise decisions that can result to huge business losses. Hence seek counsel first before committing your capital.

  1. Look Before You Leap

When you have fund and ready to invest, please examine and evaluate the investment opportunities before committing your funds. Don’t engage on get-rich quick schemes that bring tempting offers rather seek for tried and true investments.

Building lasting wealth is a concerted effort. If you can find a way of making savings and investing a whole lot easier, then you wouldn’t any issue living a stress-free and financially independent life.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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RichardAgu
Building lasting wealth and becoming financially independent don’t just happen. It requires concerted effort, discipline and sheer determination in savings and investment.
wealth, build, enhance, money
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2019-45-22
Monday, 22 April 2019 08:45 AM
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