9 strategies for building and protecting wealth

Many people look at wealth as something beyond reach. But with the right strategies, building wealth can become an achievable goal.

The idea of discovering a groundbreaking financial secret is tempting, but the truth is, that the smartest people are often sticking to proven strategies. While the financial landscape evolves, some timeless approaches continue to deliver results.

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Here are 9 key strategies money-smart people use to build and protect their wealth compiled by GO.

1. Live below your means

One of the foundational principles of wealth building is living below your means. Even high earners benefit from budgeting and controlling expenses. Spending less than you earn allows you to save and invest for the future. Avoid lifestyle creep, the habit of increasing spending with income growth. Instead, focus on putting more income towards investments and savings to lay a strong financial foundation.

2. Have a clear savings plan

Once you establish a budget, it’s essential to have a savings plan in place. Define your savings goals, whether they’re for an emergency fund, a down payment, or other needs. High-yield savings accounts can make your money work harder by offering better interest rates than traditional accounts. Automate contributions to your savings to keep it consistent. Over time, you’ll see your savings grow, thanks to compounded interest.

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3. Maximise retirement contributions

Thinking long-term is essential for wealth building. Maximise contributions to retirement accounts, to take advantage of tax benefits and compounding growth. If your employer offers a matching contribution, make sure you contribute enough to qualify for the full match. Set up automatic contributions so your retirement savings grow steadily. Building up your retirement fund from an early age helps ensure a financially stable future.

4. Reduce debt and improve your credit score

Debt with high interest can slow down financial progress. Make debt repayment a priority to reduce financial strain and save on interest costs. Explore debt-reduction strategies to find one that fits your situation, and take action early. Meanwhile, monitor your credit score, as it affects major financial decisions, like securing a loan. Maintaining a high credit score can result in better interest rates, saving you money over time.

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5. Prioritise long-term investments

Chasing quick investment gains can be tempting, but focusing on long-term investments provides stability. Consistent contributions to stocks, bonds, or real estate yield growth through compounding. Time in the market is often more rewarding than trying to time it. By investing for the long haul, you harness the power of compounding, which can build wealth significantly over decades.

6. Diversify your investments

Diversification is key to minimising risks. By spreading investments across asset classes like equities, fixed income, real estate, and precious metals, you reduce the impact of market fluctuations. A diversified portfolio helps protect against downturns in any single sector and supports steady growth. Diversifying assets helps you weather economic shifts and protect your wealth over time.

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7. Protect your wealth with insurance

Protecting wealth is as important as building it. Insurance safeguards assets against life’s uncertainties. Homeowners insurance, car insurance, life insurance, and property insurance offer financial protection. Ensuring adequate coverage helps you manage risks, giving you peace of mind that your assets are protected.

8. Take advantage of sign-up bonuses

Many financial institutions offer sign-up bonuses for new savings, checking, or credit card accounts. If you need a new account or service, look for offers that provide bonuses, giving your finances an extra boost. These bonuses are simple ways to add to your savings without much effort, helping you make the most of every opportunity to increase your wealth.

9. Leverage credit cards wisely

Credit cards, when used carefully, can be valuable tools for building credit and earning rewards. Cards that offer cash-back or travel points reward your regular spending. If you pay your balance in full each month, you can avoid interest charges and benefit from the rewards. Look for credit cards that align with your goals and spending habits to get the most out of every purchase.