Today, I have Adriana guest writing about different ways to build wealth.
Adriana is an experienced web content writer, passionate about everything personal finance. She blogs about the topic over at moneyjourneytoday.com, where she covers everything from saving money and frugal living tips, to real estate and investing.
What are some unconventional ways to build wealth for your golden years?
Securing a retirement nest egg typically implies contributing to a traditional retirement savings plan.
In addition, common ways to build wealth for your golden years include setting up Roth IRAs or investing in stocks, bonds, mutual funds and the likes. Compound interest can do wonders for your finances if you play your cards right!
Over the past few years though, many have come up with quite some unconventional ways to secure enough funds to live comfortably ever after!
While the traditional retirement setting usually means growing old watching grandchildren grow up, some prefer looking at retirement from a totally different angle.
Here are 3 unconventional ways to secure a retirement nest egg.
1. Moving to a cheaper country
Packing your bags to leave for good sounds impossible for some, but the many who have already chosen this route think otherwise.
More and more people choose to ‘migrate’ to more convenient destinations.
You might think it’s Florida, because that’s usually the case with retirees. It’s not.
If you’re looking for the cheapest states to live in in the U.S., know that Mississippi, Indiana and Michigan are the most affordable.
If you’re looking for even less costly options, consider Europe. It’s, by far, cheaper than living in most states of America.
Southern Italy is the perfect example. You’d be living in one of the most beautiful countries in the world, in the most affordable part of it.
Other countries are on the shortlist for retirees as well: Spain, Portugal, some East European countries and even tropical destinations, like the Philippines.
If you can bare the thought of visiting your home and loved ones as a tourist, you can definitely plan to live like (retired) royalty.
2. Building a business with the purpose of selling it
Working hard to build a successful business, so you can be hardly working after selling it? Sounds quite appealing!
While the vast majority of business owners leave their company to their heirs, others choose to sell their thriving enterprise.
It’s no secret that businesses, old or new, are acquired on a regular basis.
For some, it’s easier to just buy an already established brand, rather than struggle to build one from scratch.
If people have the funds and are willing to pay the big bucks, why not sell your business and enjoy a care free retirement? When you’re ready, of course.
The more potential your business has, the more you can sell it for.
3. Creating passive income streams to fund retirement
Although growing in popularity, passive income streams are often overlooked. By many!
Real estate is one of the best examples of funding your retirement this way.
Renting properties long term is a great way to earn money. You’d have to know what it takes to become a landlord first and, of course, own the property you plan to rent.
Short term renting can also turn out to be a profitable idea. Instead of looking for ‘permanent’ tenants, you could list your property on websites like AirBnb and make money by renting to tourists.
Investments are popular sources of passive income as well.
Having a diversified investment portfolio can be a great way to slowly build wealth and fund your retirement through dividends, annuity income and so on.
Making money online can turn out to be a great idea to earn (passive) money as well.
Living in the era of information has some amazing advantages.
You can, for instance, create a product and sell it online. It can be anything: a book, a course, an app or something innovative that sells.
Alternatively, you could start blogging and earn money from affiliate sells or advertising.
Blogging isn’t taboo anymore either. It’s likely young adults today will become the tetchy grandparents of tomorrow.
Creating sustainable income streams can be a great way to fund your retirement.
It’s all about weighing in the pros and cons, but this unconventional way of funding a retirement can overall be of great help.
Bottom line, it’s important to take retirement seriously.
Although the golden years seem far, far away for young adults, the sooner you start planning for them, the better!Follow me on the social medias: