By financen | January 6, 2018 - 6:24 pm - Posted in Uncategorized

2017 was the year Americans became more aware of their personal net asset worth when publications revealed only 4 in 10 Americans have savings of $500 or more. The American Dream now belongs to financial institutions as the ability to save is slowly replaced with the need to increase a FICO score. This is because more and more of the American population is relying on finance to build their dreams. A funding nightmare is on the cards and for Americans to avoid another bubble bursting as it did in 2008, a savings and investment approach is sorely needed.

Swap Rental for Mortgage Installments

With an estimated appreciation rate of 8% per annum on properties, it makes sense for consumers to look for a place of their own. In 2018, lenders are looking to tighten the lending leash somewhat due to the number of defaults listed in the past few years, however, this does not mean that the property market is out of reach. Consumers will still have access to property finance, but the criteria may be a little more strict. This is to the benefit of the consumer, as it ensures they are able to afford their purchase. This also means greater peace of mind adding a funded item to the personal asset portfolio.

Consider Tangible Investments

Investments are still a sticky topic for many potential investors, as it’s only been a mere decade since investors lost billions through stock market crashes and unscrupulous conduct by bankers and investment brokers. There is a route that provides a bit more stability, however, risk is still very much part of any investment portfolio. These include tangible investments which allow investors to own an item as opposed to just a profile. Property and classic cars are firm favorites and bullion is right up there with them.Australian silver coins are a good example of bullion and are fairly easy to purchase.

Purchase Everyday Items That Will Hold Value in Future

It’s tempting to go for items that are easily replaceable such as furniture, clothing, and jewelry. However, there is a strong market for vintage items that may have increased the personal asset value of the owner. These items include once-off pieces of jewelry and even fine furniture pieces that were handed down from generation to generation. Although the market may be small for these items, there is enough demand in order for the owners of these items to rely on their value.

Increasing personal net worth starts with the increase in assets. At first, there might be debt that goes along with it but in time the asset value should exceed these debts. This allows consumers to increase their financial position which helps in times of crisis.

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