If you want to create wealth, invest in a Roth IRA. However, if you want to create wealth quickly, then you should consider other options.
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This article has been translated from our English edition.
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Jeff got up He worked as a financial advisor for 16 years. During this time he learned that investing in financial products for long-term growth is neither the only nor the best way to build wealth. Become a hacker You should invest in ways other than mutual funds and SP 500 that go beyond the recommendations of a financial advisor. Here are nine ways to build wealth that most financial advisors don’t recommend.
1. Save money on vehicles
Rose does not recommend spending any unnecessary money on your car. He inherited his first car so as a financial advisor he made no car payments for the first year. These savings enabled him to fund his Roth IRA and put money into his 401K. He estimates that driving this car earned him $ 10 million in diverted allowances.
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2. Don’t buy “more” a house than you need
Likewise, Rose does not recommend buying a home that is more expensive than you can afford. Make a reasonable purchase or keep renting.
3. Stop buying so many things
In general, Rose advises avoiding unnecessary shopping, be it a new truck or an over-the-top kid’s birthday party.
4. Save a percentage of your income
While all financial advisors recommend saving a portion of your income, few suggest extreme savings of 30, 50, or 70 percent of your income. However, saving at these levels can help you gain financial freedom early on.
5. Work as much as you can
Rose specifically urges Gen Y to spend time in their careers, whether it be overtime to develop their careers or startup activities to generate additional income. This is contrary to the recommendations of financial advisors, but a side business could create future opportunities.
6. Invest in your education
Investing in a college degree, additional degrees, an MBA, or online certifications can help you make more money.
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7. Invest in yourself
Rose explains that he spent $ 8,900 on a year-long training program, an investment in himself that resulted in business opportunities, outsourcing strategies, and smarter decisions to improve his efficiency and profitability. In particular, the training program had a higher return on his investment than the Facebook shares he bought at the beginning – hundreds of thousands of dollars he made from his original investment.
8. Get into entrepreneurship
Rose encourages adventure, especially when you are younger. Suggest starting an online business such as a blog or an ecommerce website.
9. Invest in real estate
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Financial advisors generally advertise financial products that they earn a commission on or that they manage and are unlikely to recommend real estate as an investment. But Rose says investing in a complex or moving houses is also a way to increase wealth.