Building wealth is the major goal for most people who turn to investing. As part of a traditional investment plan, many people hire a personal financial advisor.
I want to be clear, I have nothing against personal advisors. In the correct place and time, a financial advisor can be very beneficial. A financial advisor could give you tips on how to take your investing to the next level or advice on how best to strategize your investment plan.
A financial advisor is a useful tool to have in your arsenal. But. . .
A financial advisor can also cost you money. The expense of a financial advisor is not always worth it. And, hiring a financial advisor isn’t a necessary step to building your wealth.
I put together a few tips on how you can build wealth without a financial advisor.
Stay Out of Debt
My first tip for expanding your wealth without a financial advisor is to stay out of debt. If you’ve built some wealth already, this should be easy. Simply watch your expenses and make sure you’re not going overboard.
Over-spending can happen to anyone. If you’re feeling like you need to keep up with the Jones’ and spend as much as your friends do to maintain an image, be careful. That’s one easy way to get into debt.
You definitely don’t need a financial advisor to tell you that debt is expensive and you shouldn’t have it if you don’t need to. Avoid debt and you can more easily expand your wealth.
Pay off Your Mortgage
There’s good debt and there’s bad debt. A mortgage is typically considered good debt, but if you can pay off your mortgage you should. Once your mortgage is paid off, you’re basically living for free.
That freedom from debt will allow you to siphon all of your funds towards building more wealth. Instead of paying off debt, your dollars are working for you and making you more money.
You don’t need a financial advisor to expand your wealth. Simply look for ways to decrease your debt. Once your mortgage is paid off, you can use that money to build more wealth.
Lower Your Expenses
You’ve probably reached the point in your life where you can afford the finer things in life and buy about anything you want to. That’s a great feeling. But, spending more than you should leads to debt.
An easy way to build your wealth is to spend less. This advice doesn’t sound glamorous, but at least you didn’t pay a financial advisor to get it.
If you can lower your expenses, you’ll have more money in the bank. More money in your account leaves you more dollars to invest and build wealth with.
Spend your money on things that build wealth, instead of on objects that you then have to store in your home.
Add a Side Hustle
Want a little fun while you work to build your wealth? You can combine that by finding yourself a side hustle. Your side hustle could be anything you want, just make sure it’s not too risky. The higher the risk, the higher the potential to lose money.
Your side could be investing or becoming an entrepreneur. Loan some capital to a promising start-up and make money when that start-up becomes successful.
No financial advisor required here.
Maintain an Emergency Fund
When an emergency comes up, will you have the money to pay for it? If you will, that’s great. If you don’t have some cash sitting around that can be used to pay for an emergency, you might have to take out a loan or go into debt to cover the costs.
An emergency fund helps to prevent you from needing to go into debt. Debt is costly, stay away from it if you can.
Build your emergency fund so your bases are protected. Then, go out and expand your wealth. A financial advisor would give you the same advice—now you don’t need to pay one for it.
Get Tax Efficient
Taxes. None of us like having to give our hard-earned money to the government at the end of the year. No matter how much you dislike it, the IRS is going to continue to come knocking.
But, there is something you can do. And it doesn’t require a financial advisor.
Instead of hiring a financial advisor, hire a CPA. An accountant might cost you a little bit of money, but they can also save you money.
The more efficient you are in paying taxes, the more money in your pocket. That extra money you save from going to the government can be used to expand your wealth.
A CPA is worth their money when they save you money. A financial advisor doesn’t have the same return on investment.
Hire a Fiduciary
If you really feel like you need to hire a financial advisor to help you get started in building your wealth, I have one requirement.
Hire a fiduciary.
Not all financial advisors are created equal. There’s no certification process or regulatory process to labeling yourself a financial advisor. Truly, anyone can do it.
What you want to look for when hiring a financial advisor is a fiduciary. The reason this is so important is that a fiduciary is bound by certain laws and regulations.
A fiduciary must advise you to invest with your best interest in mind. A simple financial advisor doesn’t have to advise you with your best interest in mind.
Subscribe to Nova-X Report
I’m sure it will come as no surprise that my favorite tip for building your wealth without a financial advisor is to subscribe to newsletters that provide you with useful information.
If you’re looking to expand your wealth but you don’t want to hire a financial advisor, you can subscribe to Nova-X Report for all the investment advice you could possibly want.