A Proven Guide To Grow Your Wealth In 2021 


The major tool to grow your wealth and achieve your financial goals is money. However, your liquid net worth can make your future investment plan easy, allow you to save on some important projects, and also bring some financial stability to your family.

However, to have a secure future – investing is a key, especially these days when stable economies are crumbling leaving those who have not invested with little or nothing for their survival.

So, it is essential to know how to engage your money to work for you so that your liquid net worth can move from its present state to a higher state.

Making your money work for you means gaining financial control of your finances, thereby strengthening your financial security and stability. Interestingly, wealth can grow through investing but there is a need for a better understanding of where your funds are going and how to use them better.

Why Should You Invest?

This is the surest way of growing your wealth because it can help to achieve many things – like easing your financial pressures, funding your retirement, or meeting up with financial goals.

Besides, other ways of investing could be through the money market such as corporate bonds or stock index bonds, and some other investment portfolios. All these can be done regardless of the economic climate.

However, in building your liquid net worth – it is imperative to create a balance between your profits and the risks involved. Life can happen, making a once robust market to decline – and picks up again even in challenged economies.


What To Consider As You Grow Your Wealth In 2021

For those seeking to build their liquid net worth, it is good to settle for low-risk investments with fair returns on investment or better still – go for investments with higher risk factors and aim for higher returns.

People saving for both short-term and intermediate-term financial goals or even the conservative investors, or those close to their retirement can go into less-risky investments. Therefore, if the market crashes, investments in CDs and other FDIC-protected portfolios will not lose their value and can be easily accessed when needed.

However, if you are still accumulating your retirement and have a strong mind – you can engage in risky portfolios especially if you diversify your investment.

Therefore, two things that play an important role in investing your fund is your risk tolerance and time of investment.

Things To Do Before Going Into Investment


Create a budget: An important tool to help you manage your funds. It does not only help you save for the future, but also helps you to reduce unnecessary spending, pay-off debts, know where your money is going, and identify your habits.

Plan how to be debt-free: Debts create financial burdens; so, when you pay off debts you can direct your money towards important things and then invest money and grow your wealth.

Emergency funds: This will help you plan for unexpected occurrences. So, when you are out of debts, more money is available for recurring expenses which will help you to easily grow your emergency funds.

Areas Of Investments To Grow Your Wealth In 2021


Try High-Yield Savings Accounts

High-yield online savings accounts are ways through which you can increase your liquid net worth. These online banks offer higher interest rates perhaps due to lower overhead costs. However, you can have access to the money by moving it into your basic bank account or even through the ATM.

Therefore, these online saving banks are FDIC-insured – so there is no risk of losing your money but you should be prepared to get a low return when you reinvest due to inflation. It allows you to have access to your funds any time though you may be limited to six withdrawals per statement period.


Invest In Dividend Stock Funds

Dividends are a part of a company’s earnings that is paid out to shareholders usually once in every quarter. So, the dividend stock helps you to build your liquid net worth through earnings from long-term market appreciation and other short-term payments.

So, for investors – you can buy individual stocks not minding whether they pay dividends or not but you can buy them in a stock fund as this would help you to cut down on your risk.

However, it is good to choose your investment wisely – only invest in companies that have a history of dividend increases over some time and not the ones with the highest current yield.

Therefore, you can access your fund and sell your stock funds any time the market is open or during the quarterly payouts. So, long-term investment into the dividend stock fund is recommended for better performance. Reinvesting your dividends is also a way of growing your wealth.


Engage In Rental Housing

If you own a property – you could turn it into a money-making avenue. Besides, it could be an easy way of increasing your liquid net worth and also a means of financing a new property. However, it might be difficult running it because of the dwindling economy making tenants default in payment due to unemployment.

Besides, doing this would mean outright buying or the financing of a property, its maintenance, and the management of the tenants.

As with other areas of investments, rental housing comes with its risks – tight housing supply and low-interest rates could increase the price of houses.

Also, since liquidity is not readily available – you might not have access to cash in case of emergency. Rental housing is one of the investments with the least liquid investment – so, if you need urgent cash, don’t choose housing as a means of growing your wealth.


Government Bond Funds

These are ETFs Exchange Traded Funds) or mutual funds that invest in debt securities issued by the United States government and its affiliate agencies.

The government bond funds are invested in debt instruments like T-notes, T-bonds, T-bills, and mortgage-backed securities (issued by Fannie Mae and Freddie Mac – a government-sponsored enterprise). Besides, the government bond funds are suitable for low-risk investors, beginners, and for people that want cash flow.

Usually, these funds are safe because they have the credit of the government. However, they are subject to inflation and fluctuations in interest rates.

So, a rise in inflation leads to a decline in purchasing power, while a rise in interest rate leads to a drop in prices of existing bonds, and a drop in interest rate brings about an increase in the price of existing bonds

These are highly liquid investments but their values fluctuate based on the interest rate at a particular time.


The Municipal Bond Funds (Munis)

These funds are invested in municipal bonds issued by local and state governments. Interestingly, the interest accrued is free of local, state, and federal income taxes. Therefore, this is a good investment option for newbies and those in search of cash flow.

Also, you can own a large number of bonds as it helps investors to cushion any negative output from a small part of the municipal bond funds investment.

However, the individual bonds come with its risk – as the issuer is unable to make a principal payment or further income. It is often safe because it is almost impossible for states and cities to go bankrupt, though it can happen.

Besides, investors can make additional investments or reinvest dividends at any time. Also, they can buy and sell the fund every business day.



These investment options are ways of building your liquid net worth but it is essential to know and study the risks associated with each type of investment platform. Therefore, in growing your wealth, you must open a brokerage account and then choose a reliable and reputable broker to help manage your investments.

So, if you want to have a flourishing liquid net worth in 2021 – any of the investment options highlighted above would help to grow your wealth.

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