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.
Looking for more tips like this? Explore our blog now to keep reading.
