Young people in the prime of their lives seek ways to get rich, or at least build up enough savings to preserve their future and protect them from any emergencies they may face in life, but the road to wealth often does not seem easy, but young people face many troubles and difficulties in it.
A report published by the American network “CNBC”, and viewed by Al Arabiya.net, says that there are many ways in which a person can build wealth, from establishing a successful startup to obtaining a huge inheritance, but for many people, especially employees These options may not be available and may not even be on the horizon in the future.
According to the report, “Achieving wealth usually requires a long-term strategy, and this can include a number of elements, such as preparing a budget, investing, and managing money well.”
According to a recent study conducted by the financial services company Empower, “the most important factor in building wealth today is salary, as 67% of millennials believe that a high salary is the main factor in creating wealth.
However, financial experts assert that obtaining a high salary can play an important role in developing your wealth, but it will not make you rich on its own, as “if you do not use this money effectively, it may not contribute much to raising your wealth.”
“The real key to building wealth is how much you keep in savings,” said Scott Johnson, a chartered financial analyst and chief investment officer of a giant company.
He pointed out that it is possible to keep some of this amount in a savings account at the bank, adding: “You should always keep cash reserves for emergencies, but investing in assets such as stocks, bonds or real estate will help your money grow in the long term.”
Johnson continued, “If the money you save is only under your bed, its purchasing power may diminish over time due to inflation, but investing in low-cost funds is a time-tested method that has been shown to be a good and effective way to build wealth.”
“Even if you can’t save much, it’s a good idea to get in the habit of investing what you can afford to invest,” Johnson said. Unlike the money in your checking account, investments benefit from the power of compound interest, which occurs when you accrue interest on your returns in addition to your initial investment. So your money grows faster.”
Johnson believes that “building wealth comes by achieving a balance between living here and now, and providing sufficient savings to achieve growth for you .. The longer these savings grow for you, the greater the opportunity to obtain accumulated wealth.”
