![]() This can lead to higher salaries, bonuses, and other financial rewards that can help you build wealth over time.” Seeking Professional Financial Advice By improving your skills and knowledge, you can increase your earning potential and open up new opportunities for advancement. Lima shares that “investing in education and personal development can also be a great way to build wealth. It can help you grow your income and live a more fulfilling life. Learning new skills and working on yourself is always a good return on investment. This is especially important as you get closer to retirement, when you may want to shift your investments to more conservative options.” Pursuing Education and Personal Development 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. Lima said that “building a diverse investment portfolio is important because it helps to reduce risk and maximize returns. You can still get solid returns, but avoid the downside risk of putting all your money in a single investment. Investing in meme stocks might be fun, but building real wealth requires protecting your investments by diversifying. 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 “Investing in real estate can be a great way to build wealth” Lima said, “especially if you’re able to buy properties that appreciate in value over time. It can be risky and many have lost money investing in real estate, but if you have a plan in place, you can use mortgage debt to your advantage. In today’s economy, you can put very little money down, improve the property frugally, and rent it out for both income and price appreciation. Real estate has long been one of the best ways to build wealth. It also allows you to take control of your financial future and build something that you’re passionate about.” Investing in Real Estate By starting your own business, you can create a source of income that has the potential to grow over time. It may not be easy, but it’s a crucial step in building long-term wealth.”īut it’s risky, too, Lima acknowledges, “starting a business can be a risky endeavor, but it can also be a great way to build wealth. By living frugally and avoiding unnecessary expenses, you can free up money to save and invest. This means spending less than you earn and avoiding debt. “Living below your means is another important way to build wealth. Lima is a fan of focusing on the necessities. You don’t build wealth by outspending your earnings, no matter how much you make. See: 9 Safe Investments With the Highest Returns Living Below Your MeansĪgain, this might seem like simple advice, but in practice, living below your means is the only way to come up with extra funds to invest. Compound interest works best over 20+ year periods with regular contributions during the entire period of time. The longer you invest, the longer you have for your money to grow. Even if you can only save a small amount each month, it will add up over time.”Īnd time is really the key. The key is to start early and be consistent. By putting your money into a savings account or investing it in stocks, bonds, or real estate, you can grow your wealth over time. “Saving and investing is perhaps the most obvious way to build wealth, but it’s also one of the most effective. You need to invest to allow compound interest to work its magic and help your money grow. Saving money may seem obvious, but putting money in a bank account won’t make you wealthy. Lima, CFP® and founder of Woodson Wealth Management, reveals his top seven ways to build wealth. This is the real way to build wealth from a financial planning expert, not some flashy sales pitch from someone trying to make money off you. ![]() We decided to tap the experts who know all about building wealth to share the best ways to build wealth the right way, without any tricks or schemes. Read: How To Build Your Savings From Scratch ![]() I’m a Financial Planning Expert: Here Are 5 Things You Should Never Spend Money on If You Want To Be Rich From “get-rich-quick” schemes to crypto traders to meme stocks, it’s hard to know how it actually works in reality. ![]() It seems like everyone online knows how to do it, but there is so much conflicting advice out there.
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