Individuals and families who are in the wealth creation phase of their financial lifecycle may be missing out on opportunities to increase their net worth by failing to unlock the full potential of their assets.
Elize Giese, Regional Head for FNB Private Wealth says, unless you get a windfall or inheritance, there is no quick fix solution to take your wealth status to the next level. Wealth accumulation often manifests overtime as part of a diverse and long-term strategy to increase your net worth.
“Furthermore, affluent individuals and families often take upon themselves the ongoing responsibility to actively manage their wealth in order to consistently grow and sustain them for future generations. They want to leave a legacy.” adds Giese.
Although there is an influx of strategies to grow wealth, there isn’t a one size fits all approach, as every family and business is unique.
“However, it is important to understand the values that govern wealth generation and apply them to your own unique strategy,” says Giese.
She unpacks some of the guiding principles for growing wealth, which constitute mastering the art of using money and assets to increase wealth:
- Expert advice – as a starting point seek advice from a reputable banker or financial expert who will be able to assess your current position and guide you on your wealth journey.
- Leveraging – this involves strategically using good debt, assets and money at your disposal to reach your wealth aspirations. For example, lending against an existing asset could unlock funds that can be used to purchase other assets and broaden income generating opportunities.
- Business opportunities – entrepreneurship continues to be a significant driver of wealth creation. The ability to develop a concept, dominate the market and scale up a business to the next level of growth continues to be rewarding. Furthermore, there is also an opportunity to identify aspiring entrepreneurs and invest in their ventures i.e. Angel investing.
- Property ownership – property is one of the common investments that many affluent individuals and families use to grow their wealth over a period of time. This can be in the form of physical property or listed property shares.
Diversified investments – as the adage goes ‘do not put all your eggs in one basket’. This investment principle has ‘stood the test of time’ as part of a broader wealth creation strategy.
“Any asset of value you own such as property, share portfolio, business assets, equity and trust funds, amongst others, can be potentially leveraged to grow and sustain wealth,” concludes Giese.
Latest posts by Alan Straton (see all)
- Ulster will meet this Isuzu Southern Kings Team - 22 March 2019
- Links to ALL 48 Parties contesting the 2019 South African Elections - 21 March 2019
- #FightRacism on Human Rights Day and Every Other Day - 21 March 2019
- R70.9 million committed to support black-owned companies - 20 March 2019
- Give Your Home a Bit of Hygge - 20 March 2019