When it comes to increasing your wealth, numerous myths and tips exist claiming this can be almost child’s play. But there’s no such thing as one seemingly simple solution. Rather, it’s the small, everyday things that will help you achieve your financial goals.
Growing your wealth in the long term is neither a question of luck nor of taking out high-risk investments. The key to solid, growing wealth is often found in everyday life: it’s worth examining old habits and acquiring new ones.
These five tips will show you how to save money and grow your wealth in the long term so you can achieve your financial goals.
1. Retain an overview of your finances: set a budget for your household spending
Setting a budget is not, by itself, the solution to increasing your wealth. But without one, you’ll never get a clear picture of your wealth and it will be much harder to make the right financial decisions. The type of budget itself is less important. A simple list of your income and expenses can provide just as much clarity as a sophisticated budget with different categories and target values. If you’re interested in concrete tips as to how you could draw up a household budget, you’ll find further information in this article.
However, the most important thing is to check your budget regularly. That way you’ll always know where you stand financially and how much money you have for personal expenses, investment or saving.
2. When you have more income, invest or save your money
With each new rung on the career ladder, your income usually increases. And when we get a raise, we almost automatically adjust our lifestyle accordingly. We soon spend more money on everyday things: we buy more expensive items and replace our car earlier than is really necessary.
There’s nothing wrong with wish fulfillment, but first consider the wishes themselves: what is worth saving for? Would it make sense to put your additional income into an investment that promises good long-term returns? Take time to answer these questions: it will be worth it in the long run. Feel free to contact our UBS investment experts if you are unsure exactly how you want to invest your money.
3. Avoid impulse buys – they are usually a waste of money
We all know what it’s like: we see something and feel an impulse to buy it. Whether expensive or cheap, from a nice shirt to jewelery or even a car – a lot of things can be categorized as impulse buys. Studies show that such impulse buys are often guided by emotions or moods. We don’t buy these things out of necessity or because we really want them, but rather for pleasure or to cheer ourselves up. Before buying something, it’s worth pausing and asking yourself whether the item in question will really add significant value to your life. In the final analysis, it’s also nicer to invest in things that really matter to you.
4. Invest in experiences – you’ll get more out of them
A study by researchers at San Francisco State University has shown that the more life experience people have, the more content they are. On the whole, those surveyed believed that these experiences were also a good investment. The study also found that while satisfaction with material purchases and experiences is about the same at the time of purchase, pleasure from material things decreases over time, while satisfaction with experiences increases.
This means that not everything that we enjoy also needs to be expensive.
Focus on the value of your leisure activities, not on how much they cost. Use your free time to read or to talk to interesting people you know, for example also about wealth. Not only will you receive valuable tips and gradually understand more about money, you’ll also be investing in your own life in a more focused way.
5. Make your own decisions, especially in connection with wealth
No one else knows better than you what you want. That’s why you should take responsibility for your wealth. Don’t delegate financial decisions to others, especially not long-term decisions.
This also means that you need to be clear about what you want, your goals and your plans. And you need to find out how much wealth you’ll need to build up to turn these plans into reality. Find the help you need: use our tips from woman experts. Learn about investments that make sense for you.
Give yourself sufficient time: Carefully considered decisions about money and investments are more likely to produce good returns.
If you’d like to speak to an expert about your wealth and your goals and plans, we’ll be happy to help.