One of your greatest tools for growing your wealth is your income. If you have the right mindset and you start to make the right decisions regarding your savings early on you will be able to set yourself up for success.
A problem people frequently encounter when it comes to money management is that they are hoping to see swift earnings. In most cases that will not only not work, but it could jeopardize a person’s long-term wealth. This is why instead of short-term solutions you should be looking at long-term continuous improvements.
Steps towards increasing your wealth.
1. Setting goals
The first step toward increasing your wealth is setting realistic goals that you can take actionable steps to achieve. This will translate into your everyday life as you will need to look for deals, discounts, and ways to reduce your expenses. Consistency is what will pay off, as in the long run every little bit you put into savings will gain interest and grow.
2. Be adaptable
Always be open to change and find alternatives. As nice as it would be for everything to go according to your plan, in most cases that will not be entirely possible. For that reason, you should always keep an open mind and try to figure out new solutions which would solve previous problems. For example, instead of paying for something upfront, you might consider using a Buy Now Pay Later platforms such as Atome or Hoola. This will allow you to reduce your monthly expenses while still getting the item you need in the end.
3. Combine benefits and rewards
Buy Now Pay Later platforms can usually be combined with credit cards. While that should never mean that you can just impulse buy things you can’t afford, it could mean that you could combine benefits. For example, if your credit card has a monthly cap for the rewards you can get, by breaking the payment into installments you will be able to gain back more points or cashback from your purchase. This is a great way of not only getting the benefit of spending less each month and using interest-free installments, but you should also be able to earn more points and cashback from your card.
There are many more benefits to combining credit cards and Buy Now Pay Later platform usage. Apart from increasing your cashback and miles earned depending on the card, you could also find yourself receiving discounts. For example, the AMEX Platinum Credit Card allows up to 50% off on dining. This might not seem like a lot at first, but over time these benefits will accumulate and you will be able to see the effects of all these small habits that have allowed you to increase your wealth.
4. Money in Savings
By not spending as much money each month you can see your savings account growing through interest. Depending on the company you are with your interest could be up to 1.5%. The more money you keep in your savings account the more interest you will be getting back, thus allowing you to have your money make your money. Compounding interest is one of the key reasons why people choose to keep their money in high-yielding accounts to benefit from the higher interest rates.
5. Invest
There is this misconception that investments are only for the rich. The fact is, that could not be further from the truth. Sure, the more money you can put into an investment, the more you will earn back, but that does not mean you cannot slowly start investing small manageable amounts. By starting small you will also learn more about understanding risks and avoiding potential big losses. The first few investments you make will be a learning lesson, but through that lesson, you will know how to invest once you have more money.
There are also great opportunities for benefits to be gained by trading with certain platforms. For example, Tiger Brokers, lets you get a free stock when you first sign up, while Moomoo can allow you to get up to 38% of your deposit just by signing up. This automatically means you can make more investments than you originally believed you would have been able to make.
Apart from investing in stocks, you can also redirect your attention to investing in ETFs in SPY/VOO. Both of these have a 10% annualized growth; thus, they can be considered more certain investments.
By starting with your investments early, you will benefit from learning more and making more returns from your money. This will help pave the path for your long-term success and wealth growth.
Conclusion:
Growing your wealth is deeply rooted in your management of money and the habits you have developed over the years. Learning how to save and make the most out of each of your dollars will allow you to instantly grow your savings account faster. Adaptability is also an important quality as you will need to be able to make choices based on each different situation. Combining the options available at any given time will allow you to have greater earnings and thus, greater control over how much you can gain. Finally, compounding interest and learning how to invest early will allow you more freedom in using your money. By understanding that your short-term decisions are what will help you have long-term benefits you will be able to continue growing your wealth effectively.