Long-term wealth building is indeed not an easy thing for you to do. Yes, not everyone can do this. Because in reality this can be realized if there is an active effort. Some people may be confused when they have excess amounts of money. Even though they could use the excess money for investment or saving.
Investment is one of the ways we can build wealth in the long term. Besides that, currently, the term investment is also on the rise and can attract the attention of many people, especially millennials.
How to Long-term Wealth Building
To create or build wealth over the long term, the first thing we have to do is save a larger portion of our income. If most people choose to save 5% to 8% of their total income. To create wealth in the long term you can choose to save up to 20% of the income you earn.
For example, you get a salary of 10 million. Then you set aside approximately 2 million for saving needs. That way, you also won’t shop and can live frugally. If later things happen that you don’t want, these savings are the long-term solution.
Free from Debt
Here’s how to build long-term wealth so that later we can have wealth in the long term, namely freeing ourselves from debt bondage. The debt does seem trivial. But if it accumulates it can be financially dangerous.
What’s more, if the debt has accumulated, it indicates that you are also spending too much money, not for saving needs. If so, what is in the head is not investing or saving. But how can we be able to pay the debt ourselves? Thus we will never be able to have wealth in the long term.
Furthermore, the most effective way that later each individual can build wealth in the long term is through investing at a young age. In Indonesia itself, even though investment is booming, it is a place of discussion. But still, few people realize the importance of doing so.
Investment and saving are also profitable in long-term wealth building. Investment can be done by anyone at any age. Especially with the many technological innovations in the investment world today. Make it easy for everyone to make transactions anywhere and anytime. The types of investments are also very diverse, there are mutual funds, Islamic investments, and stock investments. For those of you who don’t want to get entangled with lots of interest, you can choose sharia investment.
Training and Learning
Long-term wealth building, cannot only be achieved by investing and then freeing oneself from debt and saving a larger portion. But we also have to be individuals who want to continue to learn. As we already know that learning cannot only be obtained from school. Wherever and whenever we can get knowledge, for example by attending training.