How to Preserve Your Wealth in 2023

 

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    Its a very tough economic situation in America right now. Many families and adults are convinced you can't save any amount of money in 2023. While that may be partially true, anyone in any situation good or bad, has room to save somewhere. The main focus is not only the people struggling, but also the people who just landed that dream job and have some new disposable income. They are going to be the ones who benefit the most. If you feel like you don't have a dime to spare one of the best ways to start building a savings is to open an investment account.

An investment account is basically the start of your wealth preservation journey. Once you've opened an investment account try starting small like maybe 20$ deposited. You can do 20-40$ every week with the occasional 60-70$ deposits. Within a few months you'll have saved up over 600$. This is a less disciplined approach and is just accounting for extra cash you have lying around, But The 600$ can still be incredibly powerful invested in the right things, i turned my first 600$ into over $3,000 USD and that's after a 50% decline it was as high as $6,000 USD. I also saved up 460$ in my brokerage account before making my first investment, so you can just use it as a savings you don't necessarily have to invest what you deposit.

 

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If you do have a little more money available to invest like lets say 200$ every week, you can apply the same strategy with the higher amount every week instead of occasionally, and in 2 months you could have $1800 USD. Now thats assuming your not getting into any investments if you spend the 200 every time buying a stock or bitcoin. Your money is never stagnant, its always fluctuating. So if you position yourself in a good buy such as at the bottom of a stock prices drop, you can probably expect to make 20 bucks on your 200$ deposit. Understanding how much those 20$ gains actually contribute to saving is key.

Most investment banks or High Yield savings accounts only offer 4% interest on your money. If inflation is rising at 6% that doesn't even cover the value lost to inflation just having your money sitting in one of those accounts. Now back to the 20$, If you can make even 10 or 15$ per every 200 you deposit you are well above the 6% inflation rate, now your money is Increasing in value faster than its decreasing. Not only that, but your other deposits could be making 20$ here 30 there and before you know it you have 180$ in gains taking your $1800 to $1980 which you can now reinvest and diversify your portfolio. A better example is bitcoin, last week I bought 200$ worth of bitcoin. Today that same bitcoin is worth 225$. I could have my 200$ in a savings account and it would take me 7 years to make that same 25$ that i made in one week just having my 200$ in bitcoin instead of my normal bank account.

 

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Taxes, People advocate you should only play for the long term capital gains tax, which is 0 for certain tax brackets. But some people want to make money and build a cash pile not save every penny they can on taxes. If you have conviction in your investments you should trust your own expertise and get in and out 9 times out of 10 your investment will yield more money or gross profit, than trying to hold onto an asset for a year or longer in order to qualify for long term capital gains tax. Ive missed out on thousands in profit for simply attempting to wait a year before selling. My Recommendation, and this is NOT financial advice, would be to simply always sell and collect your profits (any above 10%) for a very safe portfolio growth strategy.

Calculating your taxes after investing may seem like a daunting challenge. The reality is most tax services like TurboTax offer services for Your "non-simple" tax needs. All Investment platforms such as E-Trade, Fidelity, Webull, will send you digital or physical paperwork disclosing the exact trades and profits you have made in the year. All you have to do is simply copy the data over into TurboTax and they discount what you owe from your final amount to be received. Overall, a lot of the barriers preventing most working class people from making the leap to being wealthy, is simply mental barriers/not believing in themselves or not trusting things will go as planned. 

 

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Wealth doesn't only have to be about investing. Some people don't want to invest and also, investing isn't for everyone. Its an incredibly high stress inducing and complex task to maintain an investment portfolio, especially something like your retirement. Some people are better at keeping their money vs Spending it on things like stocks, which are never a guaranteed Profitable investment anyways. If you are one of those people you may have better performance just simply making food at home, or dropping bad spending habits. Eating out is one of the biggest expenses in America Today. 

It really is the little things that make a noticeable difference. Some People spend well over $200 just on dining out in a week. If your spending over 200$ eating out that means its eating into your pockets more than simply investing that money or just putting it aside would. If it is not a necessity, you should cut it out of your life. Focus your capital on preservation and Necessities for survival. Of course some fun things involve spending, you shouldn't cut all the fun out of your life to make some profit. Its important to balance your budget and your personal self enjoyment other wise the cons start to outweigh the pros.

 

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Another one of the most efficient methods of not only preserving your wealth but creating it, is precious metals. In the sense of precious metals, there's some in the price range for every one. If you like gold and have more capital available you can probably just buy some gold bullion and count on it being worth more than you paid for it a year from now. If your like millions of Americans who only have a few dollars to spare, you can do the exact same thing but with silver. Silver is much more attainable and is still considered a precious metal. You can buy this is much smaller quantities over a long period of time and it will basically act as a savings account. If you buy 20$ worth of silver every paycheck at the end of the year you would probably have 340$-400$ worth of silver. 

The price of Silver and gold are always fluctuating as well, so its essentially as if your investing into a gold stock or a silver stock, kind of like in a caveman investor type of way. At the end of the year if you spent $340 on silver in January it may usually be worth more by Next January, but not always. You can at least count on it to SUSTAIN its value. Gold and Silver market prices have a lot of complicated reasons for liquidity movements or price fluctuations, such as when institutional investment banks buy or sell or offer bonds on their reserves of gold and silver. A lot of things can affect the broader market such as inflation, generally speaking inflation will cause precious metal prices to rise. Discipline is obviously the core Personality trait required to tie all these things together, if you know you lack in this regard, this could be your chance to start being disciplined.