After Covid-19 the world has been hit with a wave of global inflation. Everything from medical support to education to fruits and vegetables has become more expensive. On one end of the spectrum are people that are struggling to make ends meet and at the other end are people who are benefitting from this change and making more money than ever.
Which side you choose to be on depends on how intelligently you are able to manage your finances and increase your overall wealth. Growing wealth is not something that only billionaires can do. Here is how you can get on the path to wealth creation.
1. Multiple Sources Of Income
If you look at any extremely wealthy individual, you will notice that they earn from multiple sources. They might have one income stream that is bigger than all the others, but they will always have more than one. Ideally, some should be passive income streams but that isn’t easy to create in the early days.
Having more income streams will increase your current income and also make it easier to save and invest your money. Among the other benefits of multiple income streams, the most prominent is income security. In the case that one stream collapses, you still have others to rely on.
As soon as you start earning more than you need, you will start saving money. Saving money in a bank account is great but when you factor in inflation, you could be losing money faster than you are earning it. One of the best ways to grow your wealth is to invest in property.
Property has always had an upward trend. As the demand for property increases and the number of people in the world also increases and given that property is a finite resource, this will be a good investment in the long run. How much or what kind of property you buy is not that important but investing in in-demand areas will always help.
Each person is different and the way we earn money varies. The most efficient way of earning money is by pursuing a style or line of work that is in line with your personal traits. If you are great at accounting but are doing medicine, it will be harder to be good at it. You can read more about different personality types and what kinds of income sources are better suited to each. Whether you’re in a job or own a business, you can position yourself better once you know what works best for your personality type.
One of the biggest problems people have is that they are unable to save money. Even though they make a six-figure income, they also have six-figure spending habits. Until you’re able to overcome things like compulsive spending and actually have a disciplined saving routine, you won’t be able to really make wealth. Wealth grows best when you leverage money to make more money. Without a decent amount of savings, you won’t be able to invest in properties, businesses, or any other resource that will grow your wealth.
Property isn’t the only thing you can invest in. People invest in all kinds of financial instruments that grow wealth over time. These include things like government bonds, saving certificates, saving accounts, mutual funds, ETFs, corporate bonds, index funds, and many others.
One of the best ways to grow your wealth is by investing in the stock exchange, but you do need to know what you are doing or you could end up losing a lot of your money. Any kind of investment requires research. Some just require more attention than others. In any case, educate yourself about the asset you’re investing in, and then get started.
Other than financial instruments, you can also invest in businesses, start-ups, ideas, and specific high-value items. For instance, if you don’t have the money to buy a house, you could invest in a shared ownership model of a property. Similarly, you could invest in a painting or an NFT, or some other valuable asset. This is known as fractional investing where you along with dozens, hundreds, or even thousands of people are investing in an asset collectively, waiting for the asset price to rise and then selling it for a profit.
Currently, experts forecast that we are heading towards a season of high inflation. The next couple of years will bring many countries into recession and many others will struggle to keep inflation under control. In any case, growing your wealth will be helpful whether you need a short-term gain or are looking to create generational wealth. The sooner you can start, the better your chances of growing your wealth exponentially.