Building wealth can feel like a mystery, but it doesn’t have to be. With all the conflicting advice out there, it’s important to turn to the true experts who know the best way to build wealth the right way. Jamie M. Lima, CFP® and founder of Woodson Wealth Management, reveals his top seven ways to build wealth.
Saving and Investing:
Saving money is important, but investing is key to allowing compound interest to work its magic and help your money grow. The longer you invest, the longer you have for your money to grow. Compound interest works best over 20+ year periods with regular contributions.
Living Below Your Means:
Living frugally and avoiding unnecessary expenses is crucial to building long-term wealth. You don’t build wealth by outspending your earnings, no matter how much you make.
Starting a Business:
Starting a business can be risky, but it can also be a great way to build wealth. You can create a source of income that has the potential to grow over time and build something that you’re passionate about.
Investing in Real Estate:
Investing in real estate can be a great way to build wealth, especially if you’re able to buy properties that appreciate in value over time. By renting out your properties or flipping them for a profit, you can generate income that can be reinvested to build even more wealth.
Building a Diverse Investment Portfolio:
Building a diverse investment portfolio is important to reduce risk and maximize returns. By investing in a variety of stocks, bonds, and other assets, you can spread your risk and increase your chances of making money over the long term.
Pursuing Education and Personal Development:
Investing in education and personal development can increase your earning potential and open up new opportunities for advancement. This can lead to higher salaries, bonuses, and other financial rewards that can help you build wealth over time.
Seeking Professional Financial Advice:
Finding a trustworthy professional to help you can speed up your process toward financial independence and building generational wealth. Seek out a financial planning expert who knows how to guide you toward your financial goals.
– According to a study by Business Insider, saving and investing just 1% more a year can lead to an additional $1 million in retirement savings over a 40-year career.
– Starting a business is a popular way to build wealth. Over 50% of Forbes’ list of billionaires are self-made entrepreneurs.
– Real estate has been a proven method of building wealth for centuries. According to a study by NerdWallet, homeowners’ net worth is 44 times greater than renters.
Building wealth is all about making smart financial decisions and taking calculated risks. It’s important to save and invest, live below your means, start a business, invest in real estate, build a diverse investment portfolio, pursue education and personal development, and seek professional financial advice. By following these strategies, you can build long-term wealth and secure your financial future.
Building wealth doesn’t have to be a mystery. By following the advice of financial planning experts like Jamie M. Lima, you can build wealth the right way, without any tricks or schemes. With a combination of smart saving and investing, living below your means, starting a business, investing in real estate, building a diverse investment portfolio, pursuing education and personal development, and seeking professional financial advice, you can secure your financial future and build generational wealth.