Wealthy Life: How Wealthy Do You Want To Be In The Next Ten Years?
It’s quite rare to find any person who claims not to harbor the pressing desire to accumulate a reasonable quantum of a wealthy life.
You’ll surely agree that wealth results in a reinvented feeling of being secure.
In every way, wealth is an enabling force that helps you to enjoy a comfortable, luxurious, and relatively stress-free life.
Additionally, wealthy people are almost always seen to be privy to a greater sense of negotiating ability, social recognition, and power, which is desirable to all in every sense of the word.
However, as a fact, like most of the things that appear to be desirable in life, wealth is another one that doesn’t automatically appear.
There can never be a meaningful distinction as such to the upper limit of wealth any person, including you, would want to enjoy after crossing the threshold of meeting the basic needs and wants with a decently comfortable lifestyle.
Whatever the level of wealth you desire, acquiring it does demand some conscious action on your end.
The question, instead of being about how wealthy you want to be, is more meaningful when looked at as – how rich are you willing to become with whatever you have now?
The answer to that lies hidden in the key factors that go behind building a Wealthy Life.
The Equation of Wealth Life
Turning wealthy at a broad level can be described as a function of 3 main variables, namely, returns, time, and investment. In other words, how wealthy you are depends on the amount of money you have invested and the profits it pays you over time.
Future Wealth = Invested Money x (1+ Annual Return)^(No. of Years of Investment)
In the wealth equation, the only thing in your control is the invested money since you can’t control the returns in the market or start investing from 2009, given that you were already in 2018.
Therefore, the only thing left for you to play around with in your wealth plan is ‘Invested Money.’
Now, this invested money has its equation, one of which all of us are aware:
Invested Money = Income – Expenses
Once again, income is something that depends on external factors, most of which are out of your control. Thus, do whatever you can to increase your income, but what you can control from day one is ‘Expenses.’
Or, in other words, budget your household expenses to increase your savings.
It’s About Your Choices
If the only factor you can control is your investment, then in a certain sense, your wealth goal depends on the conscious decisions you can make.
If you study the behavior of the wealthy and take up the right action at the right time, the chances are that you’ll be much more likely to end up as wealthy.
Buying a House vs. Paying Rent
As a small example, consider the purchase of your first home if you save some money for the down payment and can buy your house on loan.
With an amount not very high to your rental mortgages, you’ll secure an asset that appreciates by the time you complete the installment payment.
On the other hand, spending most of your money otherwise will only deplete the probability of the wealth that you can build for yourself, with all your rental payments losing their chances of redemption.
Moreover, suppose you are someone who has savings but defers investing to later stages.
In that case, your hoarded money will forgo the opportunity cost of lucrative investment and significant capital gain over time.
Another pertinent choice involves protecting your saved money and your acquired assets.
With the unpredictability element in life, you can never know what happens when.
Preserving Family Wealth
There are two ways to protect the wealth you have built over time:
- Buy good insurance plans to safeguard your wealth from situations beyond your control. You can read more info on insurance strategy here.
- Invest in instruments like ULIP funds to maintain a tax-efficient and flexible portfolio.
ULIP investments can be the most tax-efficient and flexible investments for regular investors.
Since your invested money and maturity value are tax-exempt, there is no worry of returns taking a hit because of a tax deduction.
Also, you can switch between different ULIP funds as your situation changes without extra costs or tax incidents.
Expanding Your Wealth Horizon
Beyond safeguarding, expanding your wealth requires an aggressive yet strategic plan that integrates smart investing, continuous learning, and diversification.
Engaging in investment opportunities such as stocks, real estate or starting a side business can quickly expand your fortune – there may even be ways to make money doing nothing!
It’s crucial to stay aware of market trends and seek advice from financial experts as you regularly review your investment portfolio for potential optimizations. Leverage profits by reinvesting them back in using compound interest. Keep searching out new avenues of wealth creation!
Self-storage offers one promising business venture to diversify wealth, and using cold form steel framing for self-storage can help.
This innovative solution not only offers cost-effective and durable construction solutions but also speeds up timelines to achieve quicker operational turnover.
Cold-formed steel storage facilities are widely admired for their outstanding resistance to fire, pests, and moisture, thus lowering maintenance costs while increasing the longevity of storage facility usage.
Due to an ongoing need for storage solutions due to downsizing, relocation, or simply collecting personal belongings, investing in self-storage facilities can be a lucrative source of passive income.
Wealthy Life: Never Let Your Savings Rest with Wealth Plan
Years from now, if all you have is objects that depreciate or money lying in your bank, your goal of turning wealthy may take a back seat.
Even worse, you lose what you’ve saved and invested because of turning out to be a victim of circumstances coupled with careless behavior in protecting yourself.
Then, you’ll only regret losing out on the number of years that could transform your net worth with some timely action at the relevant hour. Invest wisely, protect what you gather, and grow your net worth healthily. The wealth you desire ultimately equals how much of your income you’re willing to channel meaningfully to complete your Wealth Plan.
