Being rich is more a state of mind than a bank balance. With the following steps that we have compiled, you can begin to gear yourself towards this successful mindset.
- Have the will power to go against the crowd
If following the crowd were profitable, everyone would be a millionaire. Instead, learn to buy when the markets are pessimistic, and sell when it’s optimistic. (This will help you to find bargain deals and ride the market back up)
2. Earn Intelligently
It’s not always the case that you’re earning in the most tax efficient way. For example, if your partner is in a lower tax band to you, consider allocating them some of your assets to lower the percentage that you are taxed. (Mention financial advisor?)
3. Make the most of your savings allowances
It’s not often that you get offered something tax-free, which is why saving into an ISA makes so much sense. Putting money aside into an ISA can help you to protect your earnings, and any interest earned is also tax free.
4. Diversify investments
General market swings can affect nearly all stocks, so it’s never best to have all your eggs in one basket. Instead, diversify your investments not just across stocks, but also over asset classes. By analyzing the outlook of the economy, logically distributing investment over asset categories can dramatically help you to manage risk and reduce volatility.
5. Plan for your financial future
Having a structured plan to help you reach your financial goals will ensure that you do not come into difficulties later in life. Setting money aside each month not only provides you with a safety net, but also introduces the favourable effect of compound interest. It’s important to pay yourself first, and others later.
6. Seek guidance and support to manage your wealth
Talking to a qualified financial advisor can provide significant insight into money management strategies that’ll preserve your hard-earned wealth. It will remove the stress of financial planning and provide access to platforms that will set you up for later life.
7. Know your worth
Remain on the lookout for new opportunities. Progressing in your career does not come about through sitting back and expecting things to happen. Constantly seeking new roles ensures that no opportunity is missed, and if you’re a valued employee, it is also possible that you may be offered a raise if they know that you could be leaving.
8. Cut back spending
It sounds simplistic, but you’d be surprised by the substantial number of people that are unable to successfully monitor and cut costs. Be ruthless with your expenditure, and you’ll find that almost straight away you feel better off. That £3 coffee that you get every morning at work could cost you £750 a year. (enough to fund a trip abroad.)
9. Invest for the long run
Do not get drawn in by day traders that tell you making money is easy. Trading every day is effectively gambling, and you subject your capital to unnecessary risk. Instead, invest in industries that are primed for future growth (and watch the capital/value build)
10. Stay rich
It’s hard to get rich, but even harder to stay rich. Maintaining a budget helps you to practice discipline with your hard-earned wealth, and ensures that you don’t fall under a sea of debt. Be cautious with expenditure, and look to reinvest so that you can continue to grow with the economy.