10 Ways To Build Wealth Fast
10 Ways To Build Wealth Fast
But it will still take some time and effort.
By John Csiszar May 17, 2022 Build Your Wealth
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.
Ironically, the best way to build wealth “fast” is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.
Save
You can’t begin any type of wealth-generation plan without having money to invest. As soon as you start drawing an income, make it your top priority to save as much money as you can. One strategy often recommended by advisors is to “pay yourself first,” meaning put money in savings immediately when you receive your paycheck, even before you pay your bills. This type of “forced savings” will require you to trim your discretionary spending but will also result in rapidly growing wealth.
Buy an S&P 500 Index Fund
The S&P 500 index doesn’t guarantee profits, but it’s proven itself time and time again to be a tremendous generator of long-term wealth. In fact, most investors are surprised to learn that the “risky” stock market has never lost money over any 20-year rolling period. And yet, the long-term average return of the S&P 500 is north of 10%. This means the S&P 500 index has a tremendous risk/reward profile over the long run. Even legendary investor Warren Buffett, the “Oracle of Omaha” himself, has directed his trustee to keep 90% of his money in an S&P 500 index fund after he passes.
Buy Dividend-Paying Stocks
Dividend-paying stocks may seem like a slow and boring way to build wealth, but they are one of the best ways to tap into a solid and growing source of income, and capital gains as well. The so-called “Dividend Aristocrats” are large, well-known companies in the S&P 500 index, like Coca-Cola and McDonald’s, that have raised their dividends for at least 25 years in a row. This means that those who bought these companies 25 years ago are earning huge effective yields on their original investment amount. Combined with the potential for capital gains, the Dividend Aristocrats can be a great way to build wealth.
Buy a Rental Property
To continue reading, please go to the original article here:
https://www.gobankingrates.com/money/wealth/ways-to-build-wealth-fast/