Creative Ways to Accumulate Wealth in 2023 (Hint – it’s similar to the past 50 years!)
Let's face it, we all want to have more money in our bank accounts. But in today's economic climate, accumulating wealth may seem like a daunting task. The good news is, with a little bit of effort and some creative thinking, anyone can work towards financial success in 2023. In this blog, we'll share our top tips to accumulate wealth.
Stay in Control: The Power of Budgeting
Our first tip is to create a budget and stick to it. According to a recent survey, by FinCap, 63% of UK adults “do not feel they can determine what happens in their lives when it comes to money”. The answer: keep a budget and gain control of your finances. One example of how to stick to a budget while still having fun is to use purpose-built apps like Money Dashboard or Yolt, which help to track spending and set financial goals.
Expect the Unexpected: Why Creating an Emergency Fund is Crucial
Our second tip is to build an emergency fund. Having an emergency fund is crucial for unexpected events such as job loss, illness, or other emergencies that can impact your financial stability. A recent survey by the Money Advice Service shows 50% of UK adults have less than £5,000 in savings, while an eye watering 20% of UK adults have no savings or investments at all. Setting aside at least three to six months' worth of living expenses in an emergency fund can provide a financial safety net and peace of mind during challenging times.
Debt-Free and Happy
Our fifth and final tip is to minimize debt. According to January 2023 statistics by the Money Charity, the average UK household credit card debt is £2,277, while there was a 9% change in outstanding balances over the year. While it can be easy to fall into the trap of credit card debt, minimizing debt is crucial for long-term financial success. One example of a fun way to pay off debt is to challenge yourself to a "no-spend month", where you only spend money on essentials and find creative ways to have fun without spending.
Invest surplus: The power of the great companies of the world
Our third tip is to invest in the global stock market. Once your budget is created, short-term debt cleared and you’ve built an appropriate emergency fund, then investing regularly in the global capital markets has historically been one of the best ways to accumulate wealth over the long term. According to a report by the MSCI the average annual return of the MSCI World Index over the past 50 years was approximately 6.5%, adjusted for inflation.
Extra Income, Extra Fun
Our fourth tip is to start a side hustle. With the rise of the gig economy, there are more opportunities than ever to make extra money on the side. According to a survey by Henley Business School, 1 in 4 UK adults now have a side hustle, and the average side hustler makes £300 per month. One example of a fun side hustle is to start a blog or YouTube channel, which not only provides extra income but also allows you to share your passions with the world.
Accumulating wealth may seem daunting, but with a little bit of effort and a fun attitude, anyone can work towards financial success in 2023. By creating a budget, investing in the global stock markets, starting a side hustle, and minimising debt, you can take control of your finances and work towards a brighter financial future.
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