Imagine aging and after working for years it's time to finally send your child off to college, or you're ready to finally retire. At that very moment, when age and strength are no longer on your side, you realize you can't afford to retire or pay for college expenses. Then like most individuals in a financial bind you look to loans to provide temporary help. When really the temporary help only worsens the situation. All along the fact remains that you were missing wealth literacy. Right now, the world preaches financial literacy, which does not educate on how to preserve your assets. In order to preserve finances which leads to wealth, you must be educated on wealth literacy. Without being able to differentiate one from the other, instead of enjoying yourself during your retirement stage, you're bombarded with so many money problems.
What is Financial Literacy?
The understanding and collection of financial concepts including saving, investing and debt, which leads to an overall sense of financial well-being.
The understanding of how and where to apply financial management practices including banking, investing, planning, and protecting which leads to building and preserving wealth.
What is Wealth Literacy?
In its most basic form, is the preservation of your income and assets. Because most individuals tend to get complacent when it comes to money preservation, this may be difficult.
4 steps to achieving a proper wealth preservation:
Reassessing the dangers: In an uncertain economy, it is tough to keep your money safe. So it's important to reassess the risks connected with each investment you make.
Investment diversification: It's possible that as you become older, your ambitions may shift. If you don't already have a diversified investment portfolio, you should do it now. Increasing one's net worth necessitates a wide range of investments.
Obtaining health insurance: In today's tumultuous times, insurance is a need. It's also an effective way to keep your money safe. In times of financial stress, insurance policies provide a safety net.
Having a backup plan in place: Recall that little savings account you've been contributing to from time to time? As an emergency fund, you may utilize this account to save. The safest method to build wealth is to have an emergency fund on hand rather than rely on investments or insurance policies that may expire.
Everyone's definition of wealth is different. Some see it as owning property, while others see it as a way to make money. Whichever way you view it, it still has one meaning in financial terms. Wealth is the sum of your assets minus your liabilities.
Creating riches may seem like a difficult task, but it's really pretty easy to do. You don't need to be a six-figure earner to realize this ambition. As long as you're willing to work hard and smart, you can build wealth.
Here are three approaches to building more wealth:
Boosting earnings potentials: It is a process that will help you generate money, and have several income sources. Examples include venturing into business, side hustling, and improving your skill sets.
Savings: Another critical step in accumulating wealth is setting aside money each month. It's time to start saving after you've earned enough money to meet your basic necessities. Examples include creating a budget and an emergency fund.
Investments: You can invest after you have saved a certain amount of money each month. Investing provides you with an opportunity to get more money you get back more money. Examples of investment opportunities in the stock market, Roth IRA, Real estate, 401(k), etc.
The current systems are not constructed so everyone has equal access to a healthy relationship with money, and therefore being financially aware is not enough.
IT'S TIME TO
BUILD & PRESERVE
Black Luxury group's role in wealth building and preservation.
It was the intention of BLG's founders to help close the wealth gap among the country's minority business owners. The organization gives direct access to wealth-building opportunities for entrepreneurs in a helpful and pleasant environment. Members of the Black Luxury Group have access to a team of advisors, financial education, company growth strategies, and wealth-building tools tailored specifically to the needs of minority-owned businesses.
This is achieved by providing an educational outlet for people who are willing and ready to expand their wealth and financial knowledge. You can reach out to us in the contact us section and let’s illuminate your path to financial freedom.