6 best ways to build wealth

In this day and age, even with the current economic situation, it is still very possible to build wealth. The knowledge of some of the best ways to build wealth can go a long way in helping you to successfully increase your net-worth and elevate your financial status. Here are 6 best ways to build wealth.

Consider Your Vehicle

One of the worst things a car buyer can do is to buy a car without doing some research first. It is extremely important for a car buyer not to rush into the process and get as much information as he/she can on the vehicle reliability, pricing and financing of the vehicle he/she intends to buy. This is mainly because there are many people currently spending a significant portion of their income and savings on car expenses and it's almost like their vehicles are vacuums that suck up all their money. Various car payments can be normal but this ‘normal’ will definitely not help you build wealth in the long run, and it is best to do proper research before purchasing a vehicle so you don’t end up with a vehicle that constantly devastates your bank account.

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Be Wary of ‘Little’ Expenses

The thing about little expenses is that they quickly add up into shockingly large expenses, so unless you need something, you really have no business buying it. Avoid buying crap that is not only useless, but eventually becomes a regretful waste of your money. Every ‘little’ expenses should pass the ‘is it useful?’ test, and if it doesn’t pass the test, then please save the money and be on your way to building wealth.

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Save a Percentage of Your Income

There is no magical way to build wealth, it takes time that’s why it’s called ‘build’ wealth not ‘conjure’ wealth, and saving remains one of the best ways to build wealth. Yes people are fond of saying that it’s difficult to have a saving culture in our society because we simply don’t earn enough, but that really isn’t true. Consider Fridays and how much money is wasted by most of us in the name of ‘boys night out’ or ‘girls night out’; if a person decides to take N5000 or even N3000 out of that entertainment money and put in a saving account for a year, he/she would have saved at least N60,000 or N36,000. Though the money might be small, it is something, and if the person continues that way for half a decade, it would have increased to something very reasonable, alongside the interest that will be received on it. If the person is interested in building his/her money further, he/she can invest some in real estate or can decide to buy shares and let that money continue to multiply in these ventures. There are still other legal investments to consider that can be very good for you in helping to build wealth, you just need to do some research to find out about them.

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Earn More

It is important to change that wallowing mindset of ‘Well, if my job is crappy and I don’t earn enough or if i'm not given salary increases, how on earth can I earn more?’ There is little than can get in the way of a determined man, and if you are able to work up enough grit to think of and actively look for ways to earn more money, you will. Life simply answers more to those who learn to take the bull by the horns and refuse to give in, give up or wallow. Some ways to earn more money include getting a side job (maybe a weekend job) whose income can contribute to that of your main job, invest in your education by getting more degrees or certifications that can qualify you for better paying jobs etc.

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Consider Venturing into Entrepreneurship

If you have a knack for it, entrepreneurship can be a very effective way of building wealth. For most people, their wealth building journey really took off when they made the decision to venture into entrepreneurship. However, starting a business is no small feat and it’s definitely not for the faint of heart. You are likely going to experience a lot of challenges and setbacks, and you will have to remain focused and resilient through it all. You also have to be prepared for the fact that as much as starting an entrepreneurial venture can help to jumpstart your wealth building journey, it can also really set you back financially. Nevertheless, like was said earlier, if you have a knack for it and genuinely believe you have what can set you apart from the rest and can succeed at it, then you can definitely consider venturing into entrepreneurship.

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Consider Real Estate

Investing in real estate is not for everyone, but it has helped a significant amount of people build wealth. Real estate investments might not make you wealthy overnight, but it can significantly increase your net-worth in a shorter time-frame than many other traditional investments. If you invest in real estate correctly, wisely and responsibly, it can earn you significant windfalls that can eventually significantly elevate your financial status. Some real estate investment strategies include buying and selling undeveloped lands, renting out apartments, house flipping etc.