Generally I talk a lot about business, strategy, financial models, and spreadsheets, but what is the point of it all? Well, the point is to build wealth. That is why a financial model is relevant. It is a tool to help people and businesses that are trying to grow.
Building wealth through multiple channels can involve diversifying your income streams, investments, and assets. Here are a few strategies that you can consider:
- Diversifying your income streams: This can involve having multiple sources of income, such as a full-time job, a side business, and rental properties. A strategy I implement myself is building savings through financial consulting / selling templates that help with that and then investing that into other assets, always growing.
- Investing in a variety of assets: This can include metals, stocks, bonds, real estate, REITs and mutual funds, which can help spread risk and potentially increase returns. Here are more details:
- Stocks: Shares of ownership in publicly traded companies that can provide potential for growth and income through dividends.
- Bonds: Debt securities issued by companies or governments that pay interest to the bondholder.
- Real estate: Property or land that can be rented out for income, or potentially appreciate in value.
- Mutual Funds: A professionally managed investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
- Exchange-Traded Funds (ETFs): A type of investment fund that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
- Certificates of Deposit (CDs): A savings certificate with a fixed maturity date and a fixed interest rate.
- Collectibles: such as art, antiques, stamps, or coins that can appreciate in value over time.
- Cryptocurrency: like Bitcoin, Ethereum, Litecoin and Ripple which has emerged as a new form of digital currency and have been gaining traction recently
- Precious metals: like gold, silver, or platinum can be bought as a physical asset or through exchange-traded funds (ETFs) or futures contracts
- Business ownership or partnership: Investing in small or medium-sized business or becoming a partner in a business can also be a good way to build wealth over time. This is what SmartHelping is all about.
- Saving and budgeting: Having a savings plan and budgeting effectively can help ensure that you have money set aside for unexpected expenses and to invest in your future. If you spend all the money you make, you can't grow it with other investments.
- Seek advice and help from experts : like financial advisors, accountants, and attorneys can provide valuable guidance and help you make informed decisions about your money. They don't know everything, but may be a good place to gain knowledge and build strong financial habits.
It is important to note that building wealth takes time and effort, and there is no guarantee of success. It's important to research and consider your own personal financial situation, risk tolerance and goals before making any decisions.
The theme here is don't put all your eggs in one basket.
