To build wealth, start with the resources you already have, whether that’s access to free high-yield savings accounts or a 401(k) with an employer match.
While starting today is a smart move, financial planners say not to expect wealth to grow overnight — to make real progress, you have to be patient.
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The key to growing wealth isn’t always simply to make more money. Sometimes, it’s about using what you have to your advantage — maybe it’s as easy as moving your savings into an account with higher interest rates, or taking advantage of an employer’s 401(k) match.
Most importantly, experts say one of the most important elements to building wealth is to simply give it time. Here are the best ways to start building wealth today, according to financial planners.
1. Figure out your net worth
Financial planner Michael Pappis says those looking to grow their wealth should start by understanding what they already have
The best way to do this is by calculating your net worth. “Most people have never visually seen their net worth on paper, and it’s usually an eye-opening exercise,” he says.
It’s a fairly straightforward: simply add up your home’s value, any investment accounts you have, bank account balances, and any other assets. Then, subtract any loans or debt you might have, including student loans, mortgages, and credit card debts.
If your net worth is a negative number, it just means you have a little further to go.
2. Start saving automatically
Financial planner Christine Centino says that one of the easiest ways to build long term wealth is to save without thinking about it.
“A lot of places out there right now, like Betterment, they let you automate savings into …read more
Source:: Business Insider