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Understanding Your Financial Goals: Choosing Your True Path to Growing Wealth

In this article, we delve into the common problems with conventional financial advice and ways to boost your wealth.

It’s a common experience. You sit down with a financial advisor and you’re given the typical advice. 

One. Manage your wealth. 

Two. Diversify your portfolio. 

And three. Don’t forget about life, health and car insurance. Here, pensions too, of course, are part and parcel of the discussion. 

But is this standard advice the best path for everyone looking to significantly grow their wealth?

The Problem with Conventional Financial Advice

Although the advice financial advisors provide can prepare you for building a stable future, it can also be limiting and prevent you from realising your full potential. But what exactly does this mean? 

Imagine you’re aiming for an early retirement with a high net worth. Assume you have an annual income of $80,000 and have saved $20,000 each year for 40 years. If you’ve invested that sum wisely over your life, it could grow to around one and a half million dollars for your pension. 

However, factor in living expenses, occasional luxuries and purchasing a family home and that amount adds up, reducing the amount you’ve saved for retirement. And don’t forget the increasing health-related costs as you age! 

While this model is by no means faulty – you’ll live a comfortable life, just as the financial advisor promised – you’ll likely fall short if you have more ambitious goals for your retirement, unless you start rethinking your financial journey.

Three Strategies to Boost Your Wealth

Based on the experiences of venture funds management and high net-worth individuals, there are three potential strategies that can help boost your wealth:

  • High Paying Jobs: A lucrative job, particularly in the finance or tech sectors, can be your ticket. In the tech sector, equity or stock options are a bonus as they can vastly increase your overall earnings as the company grows.
  • Entrepreneurship: An analysis of the world’s wealthiest individuals reveals that the majority either founded their companies or inherited them. Starting a business can be a golden path to amassing wealth.
  • Higher Reward Investments: If you’re content with your current job but seek life-changing wealth, this might be your best bet. But tread cautiously, and ensure the increased risks that come with higher reward investments don’t compromise on ethics or your values. 

Closing Thoughts

All in all, it’s important to align your financial decisions to match your financial goals. If you’re content leading a comfortable or modest life, you don’t have to look far to get the financial advice you need. 

But if there’s a disconnect between what you want and the steps you’re taking to achieve it, then maybe it’s time for a change. It might take a while, but moving away from the conventional path of growing wealth to one that, although unknown, has the potential far more rewarding and fulfilling might ultimately be the right choice for you.

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