The best way of reaching your wealth creation goal is to design a plan that will help you achieve those goals. Once you have defined realistic goals you can utilise smart wealth creation strategies that will help you accumulate wealth faster.
Whether you are just starting to accumulate wealth or are looking to make your current assets work harder there is a strategy for you.
Some of these strategies include:
Dollar Cost Averaging:
This strategy involves investing a fixed amount on a regular basis (eg monthly) over a period of time regardless of whether prices go up or down. It takes the guess work out of trying to pick the ‘right time to invest’ and gives you an average price you pay for an investment. It offers good potential to profit from a fluctuating market.
This strategy involves borrowing money to make an investment. It can help you build wealth faster than relying on your own capital, however, it can enhance your losses if your investment falls in value. This strategy can also be combined with the Dollar Cost Averaging strategy to help minimise risk.
Reviewing your risk profile:
Everyone has a different risk profile. To some people investing in the market seems daunting, however, by taking into account your goals and determining if they are short, medium or long term goals you may reassess your attitude to this risk and be willing to accept more volatility in your investments. There are various asset classes and various combinations that can be adapted to suit how much risk you are comfortable with while still offering the potential for growth.