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Many people dream of being rich, although the meaning of this varies greatly between people of different backgrounds and experiences. For some, this means not worrying about expenses. For others, he doesn’t work long hours. Others define it as complete financial independence.
Regardless of your definition of “rich,” experts offer suggestions for how to walk the path to greater wealth.
Learn: Here’s How Much You Need To Earn To Be “Rich” in every country
Also Read: 25 Secrets Every Rich Knows
What does it mean to be rich?
“Being wealthy means having the freedom of time and space, to do the things that matter to you,” said Andrew Lokenauth, CEO of Fluent in Finance LLC. “Wealth often comes first from being frugal. Many millionaires are wealthy because they know how to keep and invest their money – not spend it on unnecessary things.”
Beyond economics, Kyle Krueger, financial expert at The Impact Investor, expands the definition of rich to mean “a person (who) regularly earns enough to be out of trouble paying their fixed expenses such as rent, electricity, other utilities, car maintenance costs, health insurance and educational expenses.”
Find out: How much you need to be “rich” in 50 major US cities
pay for it
Rich people know that debt holds you back.
“If you’re looking to get rich, stop taking on so much credit card debt,” said Matt Dixon, RFC partner and financial advisor at TruNorth Advisors. “You need to organize your debt and start attacking the lowest balance first by paying as much as you can on that card while keeping the minimum payments on your other cards. This doesn’t mean you should never use a credit card, but make sure you use it responsibly and pay off. your monthly payments.
How to: Make a debt-free future your reality
Watch out for your risks
Plus, consider if you’re playing fast and break with your money, because, as Dixon said, “Wealthy people try not to take many risks and are very focused on details. Be selective about the opportunities you pursue. Make sure your portfolio is diversified. Try investing in real estate or land. A diversified portfolio can help you hedge against market volatility.”
Start your own company and sell it later
If you have an entrepreneurial spirit, consider starting a company that you can sell for bigger bucks, said Jared Bowman, co-founder and CEO of 201 Creative LLC, a digital marketing agency.
He said, “To be more successful, it is better to come up with an innovative solution to a particular problem in the market and start a business around it. … However, if you are successful, you will reap huge rewards. This is a common practice among wealthy individuals.”
See also: How to support small women-owned businesses
Participation in the startup and acquisition of shares
Startups are still plentiful, and they are always looking for fresh blood.
“If you can take ownership of one or more startups, you can make significant financial gains if the company thrives and either floats or is sold to a larger organization,” said Daniel Carter, director of SEO at Skuuudle.
While a small number of them succeed on this scale, he noted, “On this basis, the first employees of Apple, Google and Microsoft became millionaires.”
Focus on your retirement plan
Retirement accounts, which are typically invested in the stock market and are therefore more likely to generate good returns, are a good way to build wealth later.
“If your employer has a retirement savings program for employees, make an effort to contribute to it,” said Frances Lockner, founder of TheCostGuys.com. “Employers will contribute to 401(k) plans for the same amount you contribute to your account. You can consider an IRA if your employer does not offer you a retirement plan.”
Tip: Should You Put Your Money Into Retirement Or Your Savings? Here how do you know
Try Affiliate Marketing
Website owners, social media “influencers” and bloggers use affiliate marketing to promote a third party product by providing a link to it on their site or social media account. This earns you an income that can increase over time, said Adam Wood, co-founder of RevenueGeeks.
“Although Amazon is the most well-known affiliate partner, other big brands include eBay, Awin and ShareASale,” Wood said. Instagram and TikTok, in particular, have grown in popularity among those trying to build followers and market their products.
“Affiliate marketing is seen as negative because, in principle, you can earn money simply by placing a link to your website or social media account.”
Increase the amount you save
With inflation and interest rates rising in 2022, Sean Plummer, CEO of The Annuity Expert, said it will be even more important to manage your personal budget.
“Set a goal of increasing the amount you save in 2022,” Plummer said. You can then use this to either pay off high-interest debt, contribute to your retirement or simply get a guarantee of having more savings in the bank. To do this, consider where you can reduce expenses so that you can generate more savings.”
Investing in real estate investment funds
Another investment potential is a real estate investment trust (REIT), “a luxury title for a company that owns and manages real estate,” according to Jared Smith, CEO and founder of Property Tax Loan Pros. “Real estate investment trusts have a unique legal structure that allows them to pay minimal or no corporate income taxes if they distribute the majority of their profits to their shareholders.”
You will get any return paid by the REIT.
“The best REITs have a proven track record of increasing their payouts year on year, so you may have a steady stream of earnings over time.”
Related: 8 Insider Tips to Get Rich in Real Estate
What about NFTs?
On the most controversial aspect of wealth building are non-fungible tokens (NFTs) – a very new, non-tradable digital product made possible by blockchain technology.
“Non-fungible tokens and the Metaverse present the best opportunity to create, grow and maintain wealth,” said Harriet Chan, CocoFinder Co-Founder and Marketing Director. “Right now, minting NFTs, holding them and selling them at a higher price is one of the most feasible ways to grow your fortune in 2022.”
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