You want to build wealth and your financial adviser has your best interests in mind. However, there are also wealth strategies that sort of go outside of the typical methods that an adviser may convey to you. But what else can you do to help you build wealth that doesn’t include hearing the common savings and retirement strategies? Here are 5 hidden ways to build wealth that your financial adviser may not tell you!
When you finish your education, and go into the working world, you may want to rush out and purchase the new car that you’ve always dreamed of. But before you do so, think about how much money that new car is going to cost you in payments, interest and insurance. If you add up all of the money it would cost you, it doesn’t take long to see how not having a car payment (or at least a very high car payment) can help you build wealth over the years.
Another common purchase people make once they have steady employment is to purchase a home. On the surface, this may seem like a good investment as it can build equity over the years, and you’re not paying money on someone else’s property. However, purchasing a home locks you into a mortgage, where renting does provide more flexibility in the event that you have to move due to a job change or your family grows. A few minutes of math can help you determine if you can save more money if you rent or if you buy.
How many televisions can you watch at once? Do you really use your laptop on the go, or do you find yourself sitting at your desk? Aside from looks, is the new furniture worth the investment? Simply put, people often buy stuff that they want, but don’t really need. These extra purchases take money out of your pocket, your emergency savings fund and your retirement.
Yes, your bills need to be paid, but when starting out in life, it’s important to learn how to pay yourself first. This means that you put a percentage of every pay into savings account, investment account, your super, or some other financial vehicle. Get into the habit now of adding a percentage of your pay to help build your wealth.
One of the most given reasons that people say prevents them from building wealth is that they don’t make enough money. However, there are always opportunities to earn more. Ask for a promotion, get a second job, start a side business…in order to build wealth, there needs to be an income source for the wealth to come from.
Stay tuned for more hidden ways to build wealth in an upcoming post and talk to a Camori Investments adviser today.