For most people, building wealth is a lifelong process. Experts suggest the following strategies for building wealth in the long term:
Starting early: The age at which individuals begin investing may be the most important factor in determining wealth. Starting at an early age prevents you from having to contribute a significant portion of your income to retirement during the later stages of your career.
Take advantage of a 401(k): Most companies offer a 401(k) and even match employee contributions. Money that employees save in a 401(k) is not taxed, making this retirement instrument one of the most attractive avenues for long-term investment.
Don’t stress: Even the most successful financial planners have trouble beating the market. Simply diversifying investments and sticking with a plan should provide a healthy yield in the long run.
Automatically save: Plan to have funds automatically deposited into a 401(k) or other high-yield account. By automatically investing earnings from every paycheck, you will avoid the mistake of considering those funds as part of your disposable income.