7 Ways To Start Building Wealth Like the Rich

Jordan Rosenfeld  Wed, July 17, 2024   GOBankingRates

The wealthy may seem to have some financial magic or luck that the average person does not. However, most of their strategies are not all that complicated.

While the rich may have more money to work with than you, with the power of compound interest and other strategies, building wealth is something anyone can learn how to do. Read on to explore the seven steps to start building wealth like the rich.

Diversify Investments

Investing wisely and diversifying one’s portfolio was a hallmark of wealth-building strategies in the previous year, according to Khwan Hathai, CFP and certified financial therapist at Epiphany Financial Therapy. “This approach, rooted in the principle of not putting all one’s eggs in one basket, involves spreading investments across various asset classes to mitigate risk while capitalizing on growth opportunities.”

For someone looking to emulate this, Hathai suggested starting to invest in a mix of financial products such as stocks, bonds, real estate or even exploring newer areas like cryptocurrencies or ESG (environmental, social and governance) investing, depending on one’s risk tolerance and financial goals.

Focus on Growth over Gains

A focus on long-term growth over short-term gains has always been a distinguishing factor of affluent investors as well, Hathai said. “[The rich] look beyond the volatility of markets, concentrating on assets and ventures that promise sustainable growth.”

She encouraged a patient and focused approach to investing, where the emphasis is on the interest appreciation over years or decades, rather than quick wins.

Utilize Tax Advantaged Accounts

To Read More:  https://www.yahoo.com/news/finance/news/7-ways-start-building-wealth-123008400.html