5 Tips on Protecting & Enhancing your Wealth

We accumulate our wealth in a variety of ways, be it wages, profits, or inheritance. But the one truth that applies across all of these is that if we don't protect and enhance our wealth then its value will slip backward and we can lose it all before we know it. Here are five tips to help you avoid a catastrophic slip in the value of your wealth.

Long-Term Planning

A prudent attitude for effective wealth management should be proactive and not passive. A well thought out and thoroughly researched long-term plan should be in place. You should identify key landmarks in your financial journey. When would you want to achieve a certain level of wealth? Do you need to save for a deposit on a mortgage? These and other questions will assist you in finding a coherent strategy.

Reduce Outgoings

As much as we're going to look at building something, that process starts with using what we have wisely. An essential exercise in this process is to analyze all of your monthly outgoings and reduce them where possible. Check if you have any regular outgoings and subscriptions which are not being used, these include app or streaming subscriptions, gym memberships, etc. This is part of basic practical money skills that were all should learn.

Have a Retirement Plan

You should have a retirement plan. This should involve identifying the type of lifestyle you'd prefer to enjoy in retirement and cost out what you would need to achieve this. With this information, you can work backward and calculate the level of pension contributions you'll need to make going forward. You may look to start a business or work part-time once your career has run its course.

Speak to an Advisor

Having worked through all of the steps outlined above were should now have a good idea of where we are and where we might be headed. But what we might benefit from is some expert advice as to how to achieve it. A good financial advisor will look at your earnings, your wealth, and your goals and be able to craft a bespoke package of investment strategies that will fit what you are attempting to achieve. It's important to find an advisor that you work well with, and you both understand each other. You need to feel comfortable as they will be acutely responsible for your future wellbeing.

Periodically Review

One thing that is certain in any walk of life is that things can and do change. The economy can face an unexpected recession, you could lose your job, become ill, or a bank you hold investments with could come into trouble. You should periodically reverie your wealth planning in these times, but also in seemingly normal times to ensure you are maximizing the potential of your financial strategy.

This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.