Most people around the globe hold vast amounts of cash within savings accounts. But is this really the answer to prosperity? Although saving money is an important step in the average person’s path to financial stability, it isn’t near as vital to building wealth as investing and finding sources of revenue for the future. Although the most stable and secure way to hold funds, savings accounts and deposit boxes offer little to no return on the assets that individuals deposit into them. For an individual to become truly wealthy, they must focus on how to use the money that they already have to generate more income and revenue streams.
The most prominent way to do this is by investing rather than saving. Over time, investments, and the returns on those investments, generate substantial wealth and can be used to not only maintain the money you have but to create further cash and make you more and more prosperous as the years go on. There are several keys to utilizing this strategy of wealth creation. This article will go over several of the most prominent ones.
Stock Investment and Returns
The public stock markets are one of the easiest and simplest ways to generate returns and build wealth, although this involves taking on more risk. With a diversified and responsible portfolio, individuals can ensure the integrity of the funds that they have already accumulated, as well as generate more revenue out of those same funds. By investing in stable industries and companies that have been around for generations, these risks can also be substantially reduced.
There are plenty of businesses that will always be a necessary part of the economy, such as publicly traded construction companies, manufacturing and technology industries, communications and telecom networks, and shipping and trade businesses. These markets will always play a prominent role in any nation and economy and can produce stable and long-term sources of wealth.
Creating Part-Time and Full-Time Businesses
By using already-earned income and savings to start your own business, you can drastically improve not only your prosperity but also earn increasing revenues by doing the things that you enjoy. There are plenty of ways to do this, either by creating a virtual business that is online-based or by developing a company that has a physical location. By selling either virtual products or services or by maintaining an establishment that offers tangible items, a small business can provide extra revenue streams to the individuals creating and working for them. As an added benefit, virtual businesses require little to no start-up costs and present a potentially risk-free strategy that can be used to acquire substantial capital gains.
The Purchase and Holding of Crypto and Foreign Currencies
Although this strategy is potentially higher risk than the previous options, investment in cryptocurrency or foreign currencies, when done correctly, can generate substantial income. Through inflation and exchange rates, different currencies can dramatically increase wealth amongst their holders. This approach requires proper knowledge of the markets and superlative timing; however, the potential for returns can sometimes be astronomical. This can be clearly exhibited in the story of the Bitcoin. In the early days of Bitcoin, an exchange rate was established at a standard of 1,309.03 BTC (Bitcoin) to $1 USD. Today, that same 1,309.03 BTC would be worth the equivalent of $9,678 USD. That’s not only an incredible scale of return; it is also unmatched in almost any other investment strategy or industry. Most Bitcoin investors still speak highly of this investment and hold on to what they have.
Although saving is important for preparing for day-to-day needs and possible emergencies, savings accounts and the like are not an ideal option for generating wealth and creating financial stability for retirement. The only way these goals can be achieved is through investing your profits and wages, either through stocks and markets, creating virtual or on-the-ground businesses and companies, or through the trade of currencies or other commodities. These options not only provide sources of income, but can also be used to drastically change individuals’ earnings and generate wealth and revenue for years down the road.