According to the Office for National Statistics (ONS), the average net weekly pay in the United Kingdom in November 2022 was £578, or £30,000 per year.
To those on lower incomes, that may seem like luxury.
The truth is that, with living costs growing in every element of life, the need to save for the future has never been more important for everyone, including those with average earnings.
But is it possible, and if so, what will it take?
The answer is YES, and it isn't as tough as it may appear at first.
5 Ways To Build Your Wealth on an Average Salary:
#1 What Are Your Expenses?
This is the first question you would ask yourself if you were in financial trouble and wanted to save some money.
But there is another way to look at it.
You may start developing your money by cutting back on your expenses.
How?
You may start making more money by spending the money you would have spent on items you didn't actually need.
This makes logic when you think about it.
That coffee or lunch you buy every day may simply be earning money instead of being consumed or drained.
Or should you cut back on some of your digital streaming costs and instead look for new revenue streams?
This, by the way, is known as being part of building your “pillars of wealth.” (More on that later)
#2 Set A Wealth Creation Goal:
After you've chosen to take wealth creation seriously and begun making changes to your spending habits, it's a good idea to set a target for how much wealth you want to produce.
Even better, write it down on paper!
Put it up as a reminder on your wall.
Why?
Because having a specific figure as an objective helps retain motivation to accomplish that amount.
There's no reason why it can't be £1 million if you start early since you can start producing money in other ways to contribute to that expanding pile.
If you are starting later, then you may need to lower your sights to be realistic – on the other hand, setting a goal of £1 million might fuel your ambition and drive to achieve that sum.
The next question is…
How do I achieve that £1 million?
#3 Start Investing:
Once you have gone as far as enrolling in investment courses or trading courses, there is no limit to how much money you may make.
Nowadays, owing to the internet, there are several options to begin investing, even from the comfort of your own home and at any time of day that suits you.
There are several trading and investment platforms that deal with various types of assets, including stocks/shares, cryptos, commodities (oil, gold, silver), FX currencies, and even Stocks and Shares ISAs.
Significantly, there is an investment vehicle to fit all sorts of investors, from those who want to take as little risk as possible to those who are a little more daring and have solid risk management discipline.
Also, wealth building doesn’t have to happen once a month or every so often. By putting just £5 into your investment account every day is still going to be building your wealth, as you will see when you discover The Eighth Miracle of the World! (more on that in a moment too!)
The more you can afford the better.
You may be getting the picture already – building wealth, even on an average salary, all begins with a change in attitude, behavior, approach to your money.
Think of money as your ally rather than your play thing. It’s your partner in wealth building.
#4 Make Regular Investments:
After you've begun to accept the concept of managing your money and putting it to work, you may go to the next stage - remaining committed.
Investing money every day is possible, but it requires dedication, ambition, and patience.
It's all too simple to give in to temptation or spontaneity.
Therefore, why not make it easier to stick to your wealth-building goals by automating your investments?
In other words, your regular investment amount may be moved directly from wherever your average pay is transferred to without your knowledge!
You won't miss it at the moment, but you'll be glad to see it again in a few years when it's part of a great fat pot!
#5 Profit from the Compounding Effect:
We’re talking about Compound Interest – The Eighth Miracle of The World (according to Einstein).
And it really is miraculous.
(Click here to see a compounding interest calculator in action)
Simply put, you will be amazed how your wealth can increase when the money your money makes in interest, also makes money!
It’s the simplest but arguably most effective way to build your wealth over time.
The earlier you start, the less you need to get started.
The older you are the more you will need to put in… but either way it is a fact that compounding works regardless of the sum being compounded.
Of course, this fund you are putting money into should NEVER be touched until the time you stop working.
Start early and you can easily have built up £1 million, if not more.
The more you add, the more you will keep and keep making.
The more wealth you are building on your average salary.
Summary:
Creating wealth on an average wage is possible, and it all starts with rethinking your relationship with money.
Break away from the old way of thinking about "saving for retirement."
It takes on a whole new vibe when you stop viewing it as a chore and enjoy the concept of creating wealth.
It's even more exhilarating to know that your money can create money, and even more money!
And it doesn't take much to get started - just a mindset shift.
This includes the "pillars of wealth" described above.
Successful investors and entrepreneurs will all tell you that diversifying your income helps you get on the path to wealth.
Trading investments in stocks and crypto’s is one obvious vehicle and one that is growing in popularity now that people are realizing you don’t need to be rich already to invest and trade and make profits.
Self-made millionaire Grant Cardone has a good way of looking at it when he says, “The only reason to save money, is to one day invest money.”
Investing is growing in popularity for people with average salaries as it can be done easily from one’s home and even on your phone or laptop through apps.
But…
Having some education is important to increase your probability of success.
Here at Investment Mastery, we help people from all walks of life do that by offering our FREE subscription to IM Insider.
It gives you so many ways to learn about trading and investing with access to expert coaches, mentors, online trading courses, workshops, books, forums and exclusive access to our private Facebook members group.
About “Investment Mastery UK”:
Investment Mastery's objective is to assist our clients in achieving financial independence for themselves and their family by providing various online trading courses, stock trading courses, and investment courses from a leading financial education company. Most individuals understand how to work hard for their money, but only a few know how to make their money work hard for them.
Investment Mastery UK has designed a compounding calculator to help you learn how to build your money quickly over time by utilizing our compound interest calculator.
Learn how to trade the forex markets with our online forex trading courses for beginners.
These courses are helpful for absolute beginners to get started their journey to become a successful trader.
