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Accumulating Capital For Your Portfolio: Wise Suggestions From The Pros

If your portfolio has £1,000 in it, there’s nothing stopping you from earning a 10% return on it. But a small sum like that isn’t going to be life-changing, except over a timescale of decades. 


That’s why it is essential to do everything you can to accumulate as much seed capital as possible. Once you get to around £100,000, you have the funds you need to invest and make a real difference in your life. 


But how can you do that? That’s what we’re going to look at in this post. We take a look at some of the methods you can use to accumulate capital for your portfolio and really thrive in today’s economy. 


Accumulating Capital For Your Portfolio: Wise Suggestions From The Pros

Work Weekends


It’s not popular, but working evenings and weekends is a fantastic way to earn the extra income you need to support your capital accumulation goals. It’s not fun, but it is something that’ll get you off the ground. 


Working weekends might be something you do for a year or two. That can often provide enough money to begin a significant fund and help you find sizable investment opportunities that make more of a difference in your life. You won’t get all the way to £100,000 in extra savings in a regular job, but it’s a start. 


Embrace A Cheaper Lifestyle


The next thing you’ll want to do is embrace a cheaper lifestyle. Spending less is actually one of the best ways to accumulate money. 


While it might not be pleasant, consider giving up a car for a while. Riding a bicycle everywhere or taking the bus is an excellent option for many people. 


Don’t be afraid to downsize either. Remember, it’s only temporary. While living in a bedsit might not be ideal, it is something that can save a fortune over the long term. 


Maximise Employer Contributions


Another strategy is to maximise your employer contributions to your pension fund. Getting the people you work for to pay extra can be a great way to secure your future and ensure that you do your best when it comes to saving income. 


Of course, you won’t have much control over the funds, but it might still be worth it if you want someone else to take care of it. 


Sell Valuables You Don’t Need


Another quick approach is to sell any valuables you don’t need. This way, you can perhaps undo some of your more extravagant spending in the past and concentrate on your goals. 


For example, you could sell old coins or jewellery to gold buyers. Usually, you’ll get the bullion value of the metal plus a bit extra if there are diamonds or other precious stones. 


You could also get rid of walk-in refrigerators, giant plasma TVs, and pool tables you don’t use on eBay. There’s always a market. 


Use Time


Finally, remember time is on your side. Even if the market doesn’t go your way immediately, it will usually go up and to the right. Even if things don’t change much in a year, keep persevering and you’ll eventually build the compound interest you need to thrive. 


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