In previous generations, building wealth was as simple as committing between 10% and 20% of your annual salary into savings. With variable rates on offer to consumers, regular savings could quickly accumulate and contribute towards a nest-egg that could prove invaluable in later life.
The same cannot be said in the current economic climate, however, which has been convoluted by the rise of globalisation and various, geopolitical events from around the world.
As a result of this, it is increasingly difficult to save and build wealth through traditional vehicles, meaning that citizens are being forced to speculate and improve their earnings rather than simply looking to accumulate over time.
3 Ways to Improve Your Financial Gain and Earning Potential
To highlight this, it was recently revealed that just out of every 800 savings accounts beat the existing inflation rate of 2.3%. With inflation set to rise further, it is imperative that you are proactive and able to identify ways of improving your financial gain over time: –
Consider Marketing Your Skills as a Freelancer
We live in an age of technological advancement, where remote communication tools have heralded the rise of the freelancer. This offers you a tremendous opportunity to increase your earning potential, as you look to market your skills and seek out work outside of your regular job role.
This requires discipline and a strong work-ethic, of course, while you must ensure that you create a clear distinction between both your full-time and freelance positions. Similarly, you need to ensure that there are no contractual restrictions prohibiting you from freelancing, while it is also important to declare any additional earnings to HRMC and amend your tax bill accordingly.
Trade on the Financial Market
Technology has also removed many of the barriers to entry that once surrounded the financial markets, particularly volatile entities such as the foreign-exchange. This has enabled part-time investors to boost their earning potential through online trading platforms such as FX Pro, while also offering novices the opportunity to build knowledge, determinism and practical experience.
This is certainly one of the most popular ways of improving your financial gain, as while the daily volumes of forex trading may have declined for the first time in 15 years during 2016, an estimated $5.1 trillion is still transacted during each 24-hour period. Not only this, but approximately 90% of this money is generated by speculators or day traders, so you would certainly not be alone in the quest to build wealth through currency trading.
Become a Crowdfunding Investor
With savings accounts delivering an increasingly diminishing return, you may also want to identify more lucrative vehicles that make your money work harder. You could become a crowdfunding investor, for example, as this enables you to commit to exciting business ventures and can deliver speculative returns that are exceptional over time.
There has never been a better time to invest your money through crowdfunding platforms, and not least because it generates passive income. Most of these platforms are now equity-based, meaning that your investment will be rewarded with an appropriate share in the company’s stock. This asset class can be used as you wish, whether you wish to pocket annual dividends or eventually sell them on for a profit.
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