1. Invest in the Stock Market
One of the best ways to build long term wealth is investing in the stock market. We’ve mentioned before that your time horizon for investing in stocks should be 10+ years, so think about how much wealth you can gather from 50 or even 100 years in the market.
There are two ways you can grow your money by investing in the stock market: dividends and capital gains.
Dividends: companies want to reward their shareholders by giving them a share of profits in the form of dividends. Most people reinvest the dividends they receive back into the stock market to keep benefitting from the growth of the company.
Capital gains: as companies, industries, and economies do well, the overall value of the assets you hold in the stock market increases. This is also called capital appreciation.
The best way to invest in the stock market is through index funds or exchange-traded funds (ETFs) that provide diversification for a low cost. Most investment platforms like Vanguard and Fidelity have their own versions of ETFs and index funds focusing on international stocks, industry sectors, strategies, and more, so be sure to do your research!