The concept of wealth management is often associated exclusively with being a millionaire or having an unusual level of wealth, but the truth is that we all have a wealth, large or small, and we should all try to manage it correctly.
Whether you already have a good heritage or if you are working to achieve it, we tell you some tips to manage it correctly, valid for all ages and income levels.
The number one advice for wealth management is not directly related to money itself, but to time. The most powerful tool for wealth management is the time you have, and the more you have, the easier it will be to save and invest.
All things being equal, the worker who starts a 20-year retirement savings account will accumulate much more wealth than his co-worker who starts at 50. And what is even more interesting, the power of capitalization means that the youngest worker will need to take much less of their money to do so, which makes saving much easier.
Learn for yourself
One of the biggest obstacles in the world of wealth management is the intimidation factor. It is easy to think that investment and wealth management are simply too complicated for ordinary people to understand and that the only option is to hire a financial advisor.
The financial advisors have their place, no doubt, and are professionals whose help is necessary on certain occasions, but when we talk about basic wealth management, it is not necessary to have a lot of technical knowledge, but to try to self-form oneself. Whether you work with the help of an advisor or if you are doing everything for yourself, understanding the basics will make you a better investor.
Estimate your income
The creation of wealth does not come from anything. You have to know which parts to calculate how much you can save. Whether you are looking for a comfortable retirement or paying for your children’s studies, try to calculate what you want to save and how much you will need to get it.
There are tools and calculators that you can use to estimate the income you can maintain, such as the Little Em’ly savings account calculator.