10 Wealth Building Strategies in fast changing world – a practical approach
When I asked this question to myself few years back, I was not having a convincing answer. But today, I know what needs to be done and I am on the way to build wealth. How to build wealth in changing environment? Today we would discuss about wealth building strategies in fast changing world.
What is building wealth all about?
Building wealth is buying assets which would appreciate over a period of time. Some of the assets would even give you recurring income month on month like rent from independent houses or flat. Wealth include, buying real estate properties, investments in FD, investments in stocks and mutual funds, investments in gold, investments in bonds etc.
10 wealth building strategies in fasting changing world – a practical approach
- Investing today: Do not think about starting an investment after a year or two. Take a decision and start investing today. The early you start investing, the faster you create wealth and build assets.
- Invest in assets which grow: When you start investing, you should invest in assets which grow over a period of time. If you invest in real estate, the value grows over a period of time. If you buy a car, thought it is asset, the value diminishes over a period of time. It is essential to know where to invest money.
- Invest in best investment options: One of reader last week left a comment stating he is investing in “Insurance plans”. Insurance plans are not for investments and it is essential requirement. You should look insurance as a security and not for investment. Invest in best investment options to grow your money. There are wide varieties of best investment options like FD, mutual funds, Gold etc.
- Diversify your investments: Do not put all your money in one basket. Do diversification and invest in wide variety of investment options. While your risk would get diversified, there is good opportunity for you to maximize the returns.
- Re-invest your returns: When you invest money, do not take the returns and use it for your general purpose. If you make re-investment plans, your money grows faster. When I say reinvestment plans, what I am saying is re-invest all your returns. E.g. in FD, you have an option to withdraw your interest or reinvest the same. If you choose second option, it would be useful for you to get higher returns at maturity.
- Invest for long term: This is one of the top wealth building strategies. If you invest for long term, there are greater possibilities of your money growing faster. E.g. in real estate, if you invest for 10 to 15 years, your investment would be doubled or tripled.
- Do revaluation of your investment portfolio: When you started investing in variety of assets, you should not stick to the decision which you have taken few years back. Some investment options might be outdated and you might be getting lesser returns. Do not regret if you need to come out of such situations.
- Invest regularly: When you start investing, invest regularly. When you invest regularly, all upside or downside of the markets would be taken care and you can grow your assets faster. E.g. when you invest in mutual funds, invest through best SIP where all stock market ups or downs are taken care.
- Invest what you know: Invest in investment options where you know. Do not invest in options where you do not know anything. Do not invest in options because your friend or neighbor is investing.
- Take professional advice: Some of us do not know all investment options and neither interested to know them. In such case, taking help from professional financial advisor would be preferred. If you invest with half knowledge, there is possibility that you would fail.
Conclusion: Building wealth is creating assets which should grow over a period of time and they also provide regular returns to us. In the dynamic changing world, one cannot depend on salary or business income, hence building such wealth would help in managing our finances better.
Readers, I invite your valuable suggestions and feedback about these tips.
If you enjoyed this article, share the link in Facebook/Twitter. The links are provided below.
Wealth Building Strategies in fast changing world – a practical approach
- Mahindra Manulife Launches Asia Pacific REIT FoF – NFO Review - September 28, 2021
- Aditya Birla Sun Life AMC IPO Review – Is it good or bad for investment? - September 26, 2021
- 8.75% IIFL Finance NCD – Sep-2021 issue – Should you subscribe? - September 25, 2021