The average net worth of working Americans is a mere $120,000. Very few Americans are able to build up any notable wealth. And that means they will spend most of their retirement working, as they don't have enough money to quit their jobs.
Wondering how to flip the script,
build real wealth, and increase your net worth? The answer lies in the
money-making process. If your only income is generated by your working hours,
you'll never do it.
Wealth is made when your money makes
more money. You need to focus on long-term investment strategies that will grow
your wealth automatically, without you having to put in more working hours.
So what are the best long-term
investments and strategies that will help your portfolio grow? Keep reading
below to learn about long-term investing.
1.
Appreciation
Buying and holding assets long-term
is critical to the success of every investor. It's long-term holders that
ultimately win over those looking for short-term riches.
Your investment portfolio should
focus on assets that will appreciate in value on a regular basis. Real estate
is the perfect opportunity. On average, real estate appreciates about 3% during a normal year.
If you buy single-family homes.,
rent them out, and plan to keep them, they will eventually double in worth. A
few of these and your net worth can cross the million-dollar marker in a few
years.
2.
Cash Flow
You also want to buy assets that
produce monthly cash flow. You can either buy long-term investment stocks
that pay dividends so that you can increase your holdings on a regular basis.
Or again, you can buy rental real
estate. Every month, you'll receive a rent check. Ideally, you'll have a little
bit of profit left over after paying the expenses on the property.
This cash flow is also what will
grow your portfolio for you.
3.
High Growth Potential
The assets with the highest
potential for growth and gains are also the riskiest investments. You want
exposure to these, but you don't want to put your entire portfolio into these,
as it can implode.
Consider cryptocurrency. The market
is extremely volatile, but the gains are undeniable. The best cryptocurrency to
invest in is likely bitcoin, Ethereum, and a handful of others.
Dedicate a portion of your portfolio
to these high-growth assets.
4.
Add Short-Term Options
There's nothing wrong with
short-term investing and trading strategies, so long as its not your focus. A
good short-term trading strategy can help you boost your portfolio in the near
future.
You can take those gains and put
them into your long-term investments for faster growth.
Trading forex is one of the most
popular options since the market is so liquid. The best forex strategy can help you make decent gains without too much risk
Focus
on Your Long-Term Investment Strategy
Your true wealth is anything that is
part of your long-term investment portfolio. This is your net worth and its
what will help you retire comfortably, and maybe even early.
Short-term trading activities are
valuable, so long as they support your long-term investments. A strategy that
combines the two is ideal.
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