5 Smart wealth-building tips you should be aware of

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By: Good Nelly
on 23rd Mar,2011

1. The house prices are still low. So, even if you have a perfectly good house to reside in, you can buy a new house as an investment.
5 Smart wealth-building tips you should be aware of

1. Purchase a house: The housing market has not fully recovered yet and you can use this opportunity to build wealth in this year. The house prices are still low. You can purchase a big house by spending around one-third of its actual price. So, even if you have a perfectly good house to reside in, you can buy a new house as an investment. You can easily sell the house when the market gets better and reap profits. However, you should never buy a house which is beyond your means. Otherwise, you may get into debt problems later on.  

2. Invest in health savings accounts: You can invest in health savings accounts (HSA) to take advantage of tax break and great earning potential. Moreover, you won't have to pay any tax for withdrawing money (for covering health expenses) from the account. If you are not 65 years old and withdraw money from the health savings account for non-health related expenses, then you'll have to pay 20% penalties and income tax. However, you don't have to pay the penalty for withdrawing money once you're 65 years old.  

3. Have a side venture: Do you have a lot of free time after coming back from your work? If yes, then it can be the right opportunity for you to start a side business. For example, if you are good at designing clothes, then you can start your boutique. If you are good at repairing computers, then you can start a business on that. This way you can earn dollars without investing much money.  

4. Invest in mutual funds: One of the most common ways to build wealth is mutual funds investments. However, the secret key to success will be to invest in the low cost mutual funds. This is why you should always try to invest in a mutual fund where you have to pay low sales charge.    

5. Invest in gold: Financial experts are of the opinion that gold is the safest investment option. The price of gold generally increases with time and this helps the investors to reap huge profits. If you can't afford to invest in gold mines, then you can invest in gold coins and bars to make money. 

In addition, you can also invest your money in the stock market. Several companies allow investors to purchase stocks through the brokers. The brokers can guide you about the stock trading process. They can also tell about the best stocks in the market. However, you should not invest all your funds in stocks as the share market is quite volatile in nature.

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