Most people have their own definition of wealth and their own reasons for pursuing it. You may want to become wealthy so that you can let go of the stress that comes from living paycheck to paycheck and experience the freedom of financial independence. You may focus on using wealth to provide for your family and serve others in your community. Whatever your reasons, it is important to know that wealth is possible for everyone, including you. Here are three popular paths to attain the wealth you desire.
All investments carry a degree of risk, and real estate is no different. However, the potential rewards can make real estate worth the risk. Investment property can add value to your portfolio instantly if you purchase undervalued property at a bargain price. You can then resell it at a profit and make an immediate healthy return. If you prefer, you can rent it out and gain a source of reliable passive income.
Entrepreneurship is a popular path to wealth. A 2018 study showed that many people pursue entrepreneurship because it allows them to work in a field of interest while increasing personal income. However, self-employment can lead to working 80 hours a week or more and feeling like a slave to your clients’ demands. Therefore, your entrepreneurship journey should not end at self-employment. Your goal should be owning a business in which other people do a large share of the labor while you make the major decisions.
“Get rich quick” schemes are often scams. Do not fall for them. Be realistic in your expectations and remember that getting rich slowly is still getting rich. A retirement plan is often the best, and safest, way to build wealth slowly over decades. If your employer offers a retirement plan, especially one with funds matching, participate in it. If your employer has no retirement benefits, create your own plan. Check with your tax advisor to decide whether you should have funds taken from your paycheck before taxes or after. The important part is that you start now.