Wealth Connexion shares 5 ways you can grow your wealth, regardless of the economy.
In light of an increasingly unstable economy, people are looking for ways to ensure continuous wealth creation. While many modes of income will be negatively affected by a recession, there are some strategies that will be more resilient. Below are some strategies to help you sustain your income during these uncertain times.
1. Invest in the Most Recession-proof Stocks Possible
While it might seem like a good idea to stop investing entirely during an unstable economy, you may miss out on a vital method of wealth creation. There are a number of stock options that remain profitable regardless of recessions. Companies that provide essential products and services, such as utilities or pharmaceuticals, will continue to make money during a downturn, making them a safer investment in harder times.
2. Ensure Your Main Line of Income
When economic conditions worsen, it is common for businesses to start letting people go. Prove to your employer that you are worth holding on to by performing at a high level. In the meantime, focus on acquiring more skills and building your resume. This strategy will make you more employable if you do lose your job.
3. Diversify Your Streams of Income
Having more than one income stream is becoming increasingly popular in Australia – over 900,000 people nationally had multiple jobs as of 2022. Acquiring more methods of wealth creation can provide you with greater job security and more money that can be invested. Popular secondary income streams include side businesses, investing in stocks, and renting our property.
4. Spend Less Money
Taking on debt during an unstable economy will only lead to more debt down the line. Because of this, it’s important that you avoid spending more money than you make. Optimally, you should try to minimise spending as much as possible, so that if a line of income fails, you will still be sustaining an income.
5. Have an Emergency Fund
Putting aside some of your wages for an emergency fund is one of the best investment strategies available to you. In case of a sudden expense or lost employment, this fund will provide a monetary buffer that ensures you don’t have to go into debt.
Wealth Connexion’s team of Brisbane-based financial planners can help you create better financial habits and provide practical solutions to help you with your future wealth creation. Contact us at 07 3891 5666 or email us at admin@wealthconnexion.com.au.
