Many investors think that the best financial decisions they make will make them tons of money all at once.
While it’s true that some people made a fast fortune getting in on the Twitter IPO and others have flipped houses, the truth is that the smartest decisions made are usually the ones allow us to gain wealth slowly.
There are two parts to gaining wealth:
- One is to save money;
- The other is to make it.
An offshoot of this is to protect what one saves and makes.
#1 – Homeowners Insurance is a Wise Investment
You have already invested a lot into your home from home repairs to remodels. While the equity that is growing in your home is a huge asset that needs to be protected, the things you shelter with it are sometimes even of greater importance.
If you do not protect your assets, you are vulnerable, and just as one would not place a child into a carseat without buckling him or her in, they should not go without house insurance. Having insurance on one’s home is a means of protecting the asset (and its equity) in the event of a natural disaster or if someone gets hurt on the premises.
An important aspect to remember about insurance is to also get flood insurance. Here is why: if a tree falls on your home during a storm and water damages the domicile, it’s considered flood damage, not storm damage. Many people learn this the hard way, and it costs them everything they have.
#2 – Buy Products That are Made Locally
While many goods made overseas cost less, the money goes to support people in other communities who will not benefit you. By buying products that are made in the USA, and preferably nearby to where one lives, a cycle is created where local communities are enriched.
For example, when people on Long Island shop for their office and back-to-school supplies, they can purchase items under the Avery brand, which is headquartered in Canada and has its factories in Mexico, or it purchase products under the Kleer-Fax brand, which has its factory and corporate office in Amityville.
When New Yorkers buy Kleer-Fax products, they supports more than 100 local jobs. Those employees spend their paychecks in local stores, which stimulates the economy.
#3 – Rent Your Roof to a Green Energy Company
We live in an era where energy efficiency is top of mind. Going solar is great, and can even lower insurance costs, but it is just too expensive for most people. Plus, if the solar panels get damaged, it costs even more.
For this reason, many building owners are looking to companies like SunRay Power Management to lease their roof, allowing them the ability to go green while getting some green, too.
#4 – Test Your Investment Savvy Before Actually Investing
When it come to investing, “It’s better to do nothing with your money than something you don’t understand.”-Suze Orman(Source- Quotery).Investing is sometimes best left to professionals, but many people like investing their own money.
A great way to find out if you have a talent for operating in the stock market is to invest in a fantasy stock contest where winners end up getting thousands of dollars for charity.
This was done last year through a non-profit called Portfolios With Purpose, or PwP, and almost $200,000 was paid out to nine different charities. The biggest winner is The Jericho Project, an organization that helps the homeless, which will receive $66,000 thanks to the superior investing prowess of Doug Silverman, co-founder of Senator Investment Group.
You may also try Forex trading from the comfort of your own home. All you need is a computer or a tablet connected to internet. If you prefer stock trading you should look into Fintech companies that are growing great right now.
#5 – Prepare for Retirement as Your Next Career
Lastly, one of the most overlooked financial decisions many people make is to prepare for that phase that is after one’s working years: retirement.
Dr. Robert Pascale explains in his cult hit, The Retirement Maze, that retirement needs to be prepared for as though it’s one’s new career. In his research – and personal experience – Dr. Pascale found that retirement can be rough on one’s self-esteem, sense of purpose, and even their marriage if not properly cared for. Interestingly enough, it’s not just about money.
While many people are looking for that “magic pill” that will make them an incredible amount of money, the truth is that good finances are like good health. Magic pills don’t work quite like daily diligence, because an ounce of prevention can truly be as powerful as a pound of cure.
This article is a contribution of David Glenn. David is a home improvement expert and freelance writer with over 30 years experience as an entrepreneur in the home building industry.