Building Wealth

Building wealth may be simple, but it sure ain’t easy.

This page summarizes some of the most impactful advice on how to build wealth.

How To Build Wealth At Any Age

The general framework for building wealth will stay constant throughout your life.

It can be summarized as follows:

Spend less than you earn. Invest the difference.

However, you can and should make adjustments to your strategy depending on how old you are.

Below is a series of posts covering off the most impactful way to build wealth by age group:

Maximum Impact: How To Build Wealth In Your 20s

Let The Good Times Roll: How To Build Wealth In Your 30s

Pedal To The Metal: How To Build Wealth In Your 40s

Never Too Late: How To Build Wealth In Your 50s

Wealth Building Hacks

The easiest thing you can do to accelerate your journey to financial independence is to know, understand, and use all the tools that can give your wealth a boost.

Below is a recap of some of the most impactful ways to accelerate your wealth-building journey here in the UK.

#1: Pensions

Probably the best-known government/employee savings scheme. 

It’s not always the most straightforward but you simply can’t afford to ignore your pension if you are serious about financial independence.

pension wealth creation

Required reading:

Becoming A Pension Millionaire Is Easier Than You Think

Want To Get Rich?  Then Grow Your Pension

Zeroing In On Your Workplace Pension Returns

Five Easy Hacks To Maximize Your Pension Value (Part 1)

More Easy Hacks To Maximize Your Pension Pot (Part 2)

How To Avoid Getting Hosed By Your Workplace Pension Provider

Self-employed?  You can still take advantage of a workplace pension – this is how:

Building Wealth With A Self Invested Personal Pension (SIPP)

Find out even more about pensions

#2: Lifetime ISA

Did you know that you can get up £33k in FREE MONEY from the UK government by signing up for a Lifetime ISA? 

Also knowns as a LISA, it’s a scheme open to anyone between the ages of 18 and 39.  You can contribute up to £4k a year and the government adds another 25% on top of your contributions.

Some restrictions do apply, but if you are not taking advantage of the LISA, you are most likely missing out. 

Find out more about the Lifetime ISA.

#3: Save As You Earn

This nifty scheme can potentially give you a tax-free, 25%+ boost to your savings.  At the same time, you get full downside protection (guaranteed by the FSCS). 

If you are a basic rate taxpayer (or your pension is maxed out) and have a three to five-year investment horizon, you should definitely give SAYE a closer look.

save as you earn wealth creation

Find out more about SAYE

#4: Share Incentive Plans (SIP)

A workplace investment scheme that could do wonders in helping you build wealth and grow your net worth:

Share Incentive Plan - Wealth Creation

However, there is a reason why I put the SIP below the SAYE on this page and bolded the word “investment” above.

Share incentive plans, however attractive they may be, are not risk-free. You need to carefully consider a number of factors to figure out whether a SIP is right for you. 

#5: Junior ISA

This is a tricky one.  On one hand, I think any investment vehicle that offers tax benefits is worth taking advantage of. 

On the other, junior ISAs (also known as JISAs) come with a bunch of bells and whistles which could well make them unsuitable.

Upon serious reflection, I found a way to use a junior ISA to build my family’s net worth.  It just happens to be different from what most people have in mind.

Read more about the junior ISA here