Looking to boost your income in 2021? For high-net-worth individuals, the possibilities are endless – but with so many options to choose from, it can be hard to work out the best ways to increase your wealth for your personal set of circumstances.
From implementing additional income streams based on your current assets, to investing for the long term, there is something to suit everyone – and more importantly, plenty of ways to grow an already sizable fortune.
Here, we take a look at some of the best – from instant earners to longer-term investments you’ll be glad of later down the line.
Rent out your extra space
If you have extra space you’re not using, whether it’s parking, storage or just an empty room, renting it out online is a great way to establish an additional stream of income.
If you’re in the business of property investment, refurbishing your property and listing it on Airbnb can help you to pay off the mortgage quickly, and will allow you to make some lucrative short-term rates that you simply wouldn’t get from renting to longer-term tenants.
When it comes to parking spaces, companies like Stashbee make turning a profit from yours easier than ever. Just list your space and hourly parking rates on their website, and prospective renters will be able to find you through its simple search function. You’d be surprised at the demand for parking spaces, particularly in central city areas – and with Stashbee also handling payments on your behalf, you can rest easy in the knowledge that you’ll be paid regularly and on time.
Invest in crypto
Cryptocurrencies have been making waves amongst high-net-worth investors and complete novices alike in recent years, with the rise of Bitcoin attracting attention from all types of people looking to grow their fortunes. Given the high value of the digital asset – even after its recent decline – it remains somewhat inaccessible to those who don’t have the cash – but for the wealthy investor who isn’t afraid to take the risk, it’s a no-brainer.
And the good news is, you don’t need to be a trading expert to get involved. These days, there are numerous automated platforms that can be accessed from anywhere and will provide you with the signals you need to make all the right moves.
Bitcoin reached an eye-watering all-time high value of over £45,000 in the middle of 2020, and although it is currently around half of that, it is predicted that that number will soar once again over the coming months.
Try peer-to-peer lending
Peer-to-peer lending is becoming an increasingly popular way for high-net-worth individuals to boost their wealth even further. It works on the basis of an individual lending money to other individuals or businesses through online services that match lenders with borrowers, and allows lenders to earn higher returns compared to when placing their money in savings and investment products offered by banks. It’s equally attractive to borrowers, allowing them to loan money at lower interest rates, and because it is regulated, it’s completely above board.
Also known as ‘crowd-lending’, most peer-to-peer loans are unsecured personal loans, though individuals offering up their wealth can also choose to lend larger amounts to businesses. Lenders themselves can set the interest rates, then compete for the lowest rate on the reverse auction model, although in some cases it may be fixed by the intermediary company based on analysis of a borrower’s credit.
Earn dividend stock from your investments
When you invest in a company, you may be sent dividend stocks, which are funded by that company’s profits. This is paid out to all shareholders annually, and by finding companies that are likely to increase their dividend payments year after year, you can turn a tidy profit. As a firm’s sales and profits grow, so, too, will your dividend income – so be sure to do your homework when investing on the stocks and shares market and choosing where to place your money.
Dividends can be reinvested or used to pay for personal things – often making for a sizable university fund for children, or boosting your retirement fund. Reinvestment is generally the preferred choice, as through doing so, your net worth and income will continue to grow as time goes on – but the choice is ultimately yours.
The bottom line
For high-net-worth individuals, there are a multitude of options out there through which to grow your wealth, and the more you have to start with, the more you stand to make. Be prepared to play the long game and make savvy investments while implementing additional income streams where you can, and you can set yourself up for an enjoyable early retirement, as well as ensuring that your family is taken care of long into the future.