As a millennial, you’re faced with extremely high house prices, an unstable job market and an economy that is quite frankly, all over the place. Increasing your wealth might be something that has been at the forefront of your mind for a while, so we’ve taken the time to write down some tips and tricks you can instill in your life to help you increase your wealth. 🥳
What does it mean to increase your wealth?
To increase your wealth simply means to have more money saved and invested than you spend. The concept is simple and can be done in many different ways. By instilling small habits in your daily routine and spending a little time learning, you’ll be well on your way to increasing your wealth. 💷
Cut the costs (and the coffees ☕)
Sitting down and looking at what your outgoings are is one of the best things to do if you’re looking to increase your wealth. Carefully looking out for where you can cut costs is a lifesaver, those daily coffees, the clothes you don’t need, the takeaway because you couldn’t be bothered to cook… the list could go on forever. 🛍️ 🥘
The average British person spends £303 a year on takeaway coffee each year. Cutting these unnecessary expenses and getting your budget in order will allow you to move on and think about where else you can increase your wealth.
Avoid lifestyle inflation
Lifestyle inflation is the act of increasing your outgoings when your income is also increasing. This tends to happen when there are certain triggers such as a job promotion or getting a raise. Whilst it’s a great thing to treat yourself and acknowledge your successes, don’t fall into the trap of lifestyle inflation, and let your increase in income fly out the window. 🌬️ Essentially, it means that even if you have more money coming in, you don’t notice it because you’re spending more, therefore not increasing your wealth. You could try rewarding yourself through activities that don’t cost as much. 🙌
Negotiate your salary
When you come to the decision that you’d like to negotiate your salary, whether it’s a new job or a current one you feel situated in, it’s important for you to know your value. It’s also super important for you to have a figure in your head before you speak to your management. It turns out that when employees use a more precise number in their negotiation request, they’re more likely to get closer to what they were hoping for.
Key Tip 🔑 Preparing a summary of all your achievements, accomplishments, awards and testimonials will only act in your favour when it comes to negotiating a higher salary, this can also be called a ‘brag sheet’. 📄
Get a side hustle or passive income
Side hustles and passive incomes are all the rage at the moment and with good reason! While passive incomes generally only require initial upfront work but can be maintained easily, side hustles could mean getting a second job.
Passive incomes can range from investing to monetizing a blog, from selling an eBook online to making YouTube tutorials. The opportunities to make money online seem endless; we have the internet at our fingertips. 👩💻
Whilst having a side hustle could take up some of your spare time, the extra money you make could be used to pay off any debts, go into savings or even into investments. Your side jobs can be based on your personal skills, maybe you have a hobby of graphic design, and you choose to take on a couple of freelance jobs every month. 🖥
Having multiple streams of income proves to be less risky than solely relying on one. If one stream were to dry up and you have multiple, you’re at less risk compared to if your main income stream were to stop flowing.
Invest invest invest
Making sacrifices early on can pay off massively when it comes to investing, you might have heard the saying ‘time in the market is better than timing the market’ and it’s true, there’s no better time to invest than now. (This also goes for purchasing life insurance - buy young and buy long!) Undertaking proper research when it comes to investing is vital, there are different forms of investing that vary in risk; you could invest your savings into an ISA, or you could invest in the stock market. It’s important to be knowledgeable and feel comfortable with what you’re doing and find what suits you best. 📈
There are so many ways to increase your wealth as a millennial, it may take a little bit of extra work here and there, but in the long run, it will be worth it. All it takes is a little dedication and discipline and you’ll be on your way to increasing your wealth. 🏦
Increasing your wealth as a millennial means you should up your protection. With more money (and assets) comes the responsibility to care for those around you. It’s never too early to write a will or take out life insurance and ensure your loved ones are protected when you die. At Bequest, we’ve streamlined the process so you can sort your life admin out today! 📑