6 Financial Moves To Make This Year To Grow Your Wealth

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2019 should all be about making smarter moves and getting more done. It however isn’t the year to take bigger risks when you aren’t feeling peachy. That being said, if you haven’t reviewed your income against your spending and saving, set aside a portion of your day to do so. Take a closer look at everything and see what you can cut immediately and what you enjoy spending on. This should free up some money to fund your other accounts for the future.

At the end of the day, we should be consistently trying to save more and spending less on discretionary items (that’s if you are following the 50-20-30 rule). So, here are some financial moves that you can make this year to grow your wealth.

1 – Boost Retirement Contributions

It is wise to get a great head start and stash more into your retirement accounts. This is a great way to ensure you take advantage of the tax-free compounding and have more upon retirement and perhaps, even have a chance to retire earlier.

Retirement savings is critical for everyone to have and being proactive about it as early as possible will guarantee you a hustle free retirement.

2 – Boost Your Savings At least 10%

Not many of us save a substantial amount of our income for the future. So, if you are already saving the minimum recommended 20% of your income, this year, increase it to about 30 – 50%.

The point is to make steep sacrifices so that you can stash out more of your wealth towards investments that are right for you. After all, if you are reading this, your goal is to gain financial freedom within this lifetime. Am I, right?

3 – Pay Down Your Debt

Once of the best things you can do for yourself this year is tackle your debt. If you have the extra cash, pay down your debt quickly. Just make sure that the money forgone to pay down your debt in the short-term doesn’t jeopardize your ability to meet your financial goals this year.

What I mean is that the difference in what you pay in interest on the debt versus what you are likely to earn on savings/investments should be larger to warrant you to prioritize your debt. So, if you are paying a debt of 12% and you are earning a meager 7% on savings, then it will make more sense to prioritize your debt.

4 – Build A Better Portfolio

There is general rule of thumb that your stock stake should be 110 minus your age. This is quite an aggressive strategy that should push you over the mark and grow your overall wealth by more than 30%.

While you are at it, build safeguards by rebalancing your portfolio and taking profits along the way.

5 – Lock in A Low Mortgage Rate

Interest rates at 12% is quite good compared to the past. So consider this a great time to grab cheap home financing before the interest rate cap is removed.

Make your move now and own that home.

6 – Start A Business

This year, steal a page from the wealthy and start a business. Starting a business is a smart way to generate revenue and creating a diversified money making-machine for yourself will ensure you don’t place all your eggs in one financial basket.

While you are at it, exercise patience. Don’t expect to get rich quick, be patient for profits and focus on the long-term end game. After all, we are really after value and capital appreciation to last for a long time.

Ensure A Better Financial Future

Let’s Recap.

Whether you need to look hard at your budget or save more, 2019 provides an opportunity to set yourself up financially. However, while you are at it, don’t make your budget so restrictive that all you do is focus on the future rather than enjoying the present. Maintain a healthy balance and do more this year for yourself. Play for something bigger than yourself and ensure to follow your values, passions and greatest competency while you are it.

Image credits: Top by Breaking pic,via Pexels.

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Irene Makanga
Irene has an MBA in Finance and is an avid businesswoman, passionate about financial literacy.

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