Top 5 Tips to Start Building Wealth in 2023
When it comes to building wealth, you have to realize that you are playing a long game and part of that, is knowing how to set yourself up for success at the end. The other part of it is working with a trusted wealth advisor that can guide you through the steps you need to take to get to where you want to be. Check out my five tips you can start working on to build wealth in 2023!
Diversify Your Portfolio
Diversification is key to a successful investing strategy. By spreading your investments across a variety of asset classes, such as stocks, bonds, real estate, short-term investments, and other, you can help shield yourself from market volatility and minimize the impact of any one investment underperforming. If you prefer to focus on just the stock market, diversifying your stock portfolio is still a critical step in managing risk and maximizing long-term returns. Investing in a range of stocks across different sectors and industries can also reduce the impact of any one stock falling short.
Put a Debt Management Plan Into Place
When it comes to figuring out the best tactic, two popular debt repayment methods are the: avalanche debt payoff method and the snowball debt payoff method. To start, no matter which strategy you choose, you’ll want to make the minimum payments on all your debts. Otherwise, your credit will suffer. With the avalanche debt payoff method, you focus on paying the debt with the highest interest rate. A major benefit of this method is that you’ll save money on interest. The downside is that because it can take a while to pay off that first debt, you may find yourself struggling to stay motivated.
However, the advantage of the snowball debt method is that you’ll enjoy wins earlier. Start by paying off the little things first and if you do it earlier in the game, chances are you’re more likely to keep the momentum going. A downside is that you may be paying more in interest on your loans. When I work with clients on picking a strategy, I make sure to go through every scenario to make sure they are in a debt management plan that works for their lifestyle.
Create a Long Term Wealth Plan
Building wealth over time is a matter of following three basic steps and sticking to them. The first step is to earn enough money to cover your basic needs, with some leftovers for saving. The second step is to manage your spending so that you can maximize your savings. The third step is to invest your money in a variety of different assets so that it’s properly diversified for the long haul.
Keep an Eye Out for Short Term Investment Options
Here are a few of the best short-term investments to consider that still offer you some return. A high-yield savings account, works well for risk-averse investors, especially for those who need money in the short term and want to avoid the risk that they won’t get their money back. Short Term Corporate Bond funds are good for investors who want a diversified portfolio of bonds without having to analyze individual bonds.
Lastly, Money market accounts, are good for those who need their money in the near future and need to be able to access it without any strings attached.
Work With a Dedicated Wealth Manager to Secure Your Financial Future
Wealth management is an important service for individuals planning for the future. The advantages of competent wealth management are numerous and varied, but they all revolve around one thing: giving you financial peace of mind. Individuals spend less time stressing about their money because their manager understands how much their clients value it.
If you want to learn more about where you stand in your wealth journey, you can book a free, no strings attached consultation where I look at everything you have going on to see what makes the most sense for you. Wealth is accessible to anyone, you just have to have the tools and support to get you there.
