Slow and Steady Wins the Race: 3 Long-Term Strategies for Building Wealth

In 2018, the United States gained 21 new billionaires. For most of these new entrants into this exclusive club, it’s been a long journey of wealth building.

If you want to become a wealthy person in the future, you have to start making money now. Don’t count on the stroke of luck. Amassing wealth is all about investing wisely and, most important, patience.

But the question is: where do you invest your money?

Glad you asked. In this article, we’re sharing 3 long-term strategies for building wealth.

Let’s make some money!

1. The Stock Market

52 percent of Americans own stock.

Although this is a drop from the all-time high of 65 percent in 2007, it’s still correct to say a majority of people believe stock ownership is a sure way to build wealth.

That said, investing in the stock market requires tact. The investors who’ve gained millions or billions from stock ownership are those who bought early and waited. Buying early means getting in when a stock price low, and holding on until the price climbs higher.

As an example, a person who bought $1,000 worth of Amazon stock in 2009 is now worth well over $20,000 right now.

And if you’re not patient enough to wait for several years for your investment to grow, you can practice swing trading. This involves holding stocks for more than a day. Check out these best stocks for swing trading.

2. Real Estate

You don’t have to be a real estate professional to know that investing in real estate is a long-term strategy. If you build an apartment block today, for instance, it’ll take you several years to break even and start earning a profit – depending on how your price and market the units.

Real estate is one of the safest and least volatile places to invest your money. Yes, the housing bubble is a constant worry, but even if the market were to crash today, your investment would not be completely wiped out. It’ll only depreciate in value.

Besides investing in physical properties, you can also put your money in Real Estate Investment Trusts.

REITs are private or public companies that already own money-making real estate, such as office blocks, condos, ranches, and shopping malls. You just need to invest money in these companies and wait for your share of the profits.

3. Long-term Bonds

A bond is an interest-bearing financial security issued by federal/national governments, municipalities, and corporations. Long-term bonds start at ten years, but 20-year and 30-year bonds are the most popular.

During a bond issue, the issuer sets an annual interest rate, which dictates the amount of money you’ll earn from your investment.

For example, if you put $30,000 into a 10-year U.S. Treasury note at 3 percent, at maturity, you’ll earn a total of $39,000. An extra 9K for doing nothing all. Sounds great, right?

Building Wealth Is a Patient Man’s Game

We all want to be wealthy, but not all of us have the knowledge and patience to get there. However, with this guide on building wealth, you now have the information you need to start investing your money.

Remember, the key to building wealth is portfolio diversification. In other words, don’t put all your eggs in one long-term basket.

All the best, and read this article to learn about investing in precious metals.