Building wealth is a process that needs to be started very early in life. In fact, the earlier people start making every penny earned working for them, the faster they get to achieve their goal. However, before you start to plan and make strategies to strengthen your financial portfolio you must understand that wealth’ or being wealthy’ is essentially a state of mind. While some may consider themselves wealthy on having saved a lot of money in the bank, others may feel that being wealthy is all about having assets whose value continue to appreciate over time.
Another important thing you need to understand is that your wealth does not just lie in the bonds and fixed deposits that are technically termed as financial assets, it goes way beyond that. And. here’s more on everything that you can count on as a financial asset if you want to increase your wealth.
As it is said, every penny saved is a penny earned and the more you save, the wealthier you become.
As such, even if you have the means to purchase everything you wish for in the world, you need to identify what is a necessity and what is a luxury and balance the expenditure accordingly. Saving is important as that is the money you get to fall back on at the time of an emergency. Also, you get to build on other assets from the savings only. Moreover, it is also important to understand that when you save, you save for yourself and when you splurge on things just to maintain a status quo, you simply throw away your hard earned money to impress others. So, as the very step, you must start saving.
Mutual Funds and stocks
These are typically the professionally managed investment funds that continue to grow. Although these funds are subject to market risks, if managed well they can really give good returns and build on your wealth. With these financial assets, you literally get to make every penny grow and multiply. Shares and bonds are also quite a tricky thing to understand and manage and as such, it would certainly be a good idea to have a financial advisor on board who can continuously guide you and channelize your investments in the right direction.
This is apparently one of the best ways to multiply your wealth. Any investment made in real estate is sure to yield excellent reruns, as, in this domain, the demand is always higher than the supply. As such, you must try to manage your financial portfolio in such a manner that along with stocks and bonds, real estate is also one of its key components. You can also opt for shares of real-estate investment trusts (REITs) if you do not want to own any physical asset.
Investments in Business Ventures
If you want to become wealthy and add to your financial assets you must also try to invest in business ventures which will continue to give you returns without taking up much of your time. And, this you can do by starting up ventures wherein you get the commission from people for using your brand name as well as contacts.
Convertible Term Life Insurance
The convertible term life insurance policies can also be an excellent financial asset. These policies are ideally designed to give the insured the freedom to convert the coverage into a permanent policy. These policies not only pay upon the death of the insured, but they can also be turned into a permanent cover if the insured suffers from an ailment.
No Lapse Guarantee Insurance: Investing in this kind of an insurance policy would also add to your financial portfolio.
Neither are these policies impacted by market performance nor do they entail a huge sum of cash surrender. With these policies, it also becomes really easy to calculate the rate of returns on the premiums paid. Now, since these policies offer such a win/win deal you would probably assume that you would not be eligible for it even if you have a condition like high blood pressure. However, according to Ty Stewart from Simple Life Insure, when you apply for life insurance and have high blood pressure, the underwriters just need to see that you have the condition under control and the policy is granted.
And, now that you know, you can always add on to your financial assets by having insurance policies such as these, when purchasing them you can always take help of companies that work closely with clients helping them buy the policies that would benefit them in more ways than one.
Therefore, if you want to become wealthy, and have an impressive financial portfolio, you must make the above-mentioned techniques a way of life.
Also, it is important to keep reiterating to yourself that wealth creation is not a one day process and requires meticulous planning, discipline and patience.
And, if you have the right mindset and are ready to make your money work for you all your life, you must educate yourself in the process well and start really early too.