‘Making money even when you’re not working’: six ways to increase your wealth in 2022.
THE BRIDGE BETWEEN making ends meet and making millions can often be bridged by minor lifestyle and choice changes, according to Paul Rothschild.
As the year 2022 approaches, many people are sticking to their resolutions to be healthier, save better, and be wealthier.
Savings will not make anyone wealthy anytime soon, however, as interest rates continue to disappoint, but Mr Rothschild shared six ways with This website that may work even better.
Many people associate wealth with having a large cash reserve and even more in savings, but this is no longer the case in today’s financial world.
According to studies, the average billionaire only keeps about 1% of his or her net worth in liquid assets such as cash.
This could be because, with interest rates still well below inflation, keeping money in cash is just another way of losing value.
The vast majority of the wealthy invest their money in assets or investments that will keep up with or outperform inflation, which is what keeps them wealthy.
Mr. Rothschild, the former CEO and chief advisor of global investment firm BlackRock Asset Services, shared his six key tips for growing wealth like the rich in 2022.
“Creating wealth is about owning equity in a business,” Mr Rothschild explained.
Equity is important whether it’s in the form of stocks, owning your own successful business, a piece of a product, or a piece of intellectual property like a piece of art or a book.
Building equity means you’re always making money, even when you’re not working.”
It’s important to remember that every investment entails putting your money at risk, and no guarantee can be made about the outcome or return.
Many people are afraid of investing because of these harsh realities, but Mr. Rothschild has revealed some formulas that can help investors relax:
“The return on equity (ROE) ratio, for example, will tell you how much money a company makes from its invested capital.
An ROE of 130 percent, for example, means that for every pound you invest, they will earn £1.30.
The higher the return on investment (ROI), the more profitable the company is, and the more valuable a stake for you.”
“Others,” he went on.
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