Growing Wealth During the Cost of Living Crisis

By John Castro, CEO of Investment Mastery 

Growing wealth during a cost-of-living crisis can be challenging with soaring electricity and gas bills, increasing rentals and food prices, and stagnant salaries. But with the right attitude, sustainable budgeting changes, and some willingness to take risks despite uncertain times, it is possible to grow wealth without sacrificing our daily living standard. 

Here are five achievable tips on how to grow wealth during the cost of living crisis: 

Create a realistic budget

Start by creating a budget that accounts for your income and all your expenses. This will help you identify areas where you can cut back on spending and use this money to invest. You may reduce your expenses on non-essential purchases, such as eating out, shopping, or subscriptions that you barely use, and set aside an amount of money that you will invest weekly in stocks/shares, cryptos, commodities, Forex currencies, and even stocks and shares ISAs. 

Save more

Although saving itself will not help you grow wealth, it is necessary to maintain cash fluidity and have some spare money, especially in times of huge layoffs and raising costs of living. Knowing you have savings for rainy days will increase your psychological feeling of safety and help you be more courageous in investing. 

Educate yourself & stay informed

There is no better time than now to start learning about investments and crypto as many people are seeing it as unreliable in uncertain times. By learning more about investing in assets – stocks/shares, cryptos, commodities, Forex currencies and even stocks and shares ISAs.  You can start by investing small sums every month and slowly with more experience and confidence move on to something with a larger risk. While investing, make sure to stay on top of the situation in the market and follow the news on the industries in which you plan to invest.  

Diversify your investments

Consider investing in a diversified portfolio of stocks, bonds, and other assets to grow your wealth over the long term and minimise the risk of loss in case of any sudden economic downturns. You can also gain more income from the so-called compound interest, which is the amount you make from the money you’ve invested plus the extra money generated through interest on the original sum.   

Fix your mentality around money

The good part is, unpacking our biases around money doesn’t cost you anything. Think of the associations you’ve had with money and wealth most of your life. Do you think money is there to be stored and saved or multiplied? Do you feel guilty about any small expenses on consumption? Or maybe, on the contrary, you do not have a strong discipline with spending? Once you become aware of the limiting beliefs that you would like to change around money, you can gradually change your approach and make better financial decisions. 

By incorporating these five steps into your daily financial planning and functioning, you can not only build long-term wealth for yourself and your family but most importantly achieve better financial security and freedom in times of raising inflation, soaring prices, and shrinking disposable income. 

John Castro 

John is the CEO of Investment Mastery, an e-learning and online training company dedicated to educating beginner investors on how to use the Stocks and Crypto Markets to create financial independence for themselves and their families. From humble beginnings, John thrived for success at a young age, which has seen him involved in many business ventures throughout his 20s, using his impressive sales skills to produce untapped revenue for several 7 to 8-figure organisations. Today, he has harnessed his ability to understand human buying behaviours, build high-performing teams and his methodology of keeping business very simple, to take Investment Mastery to new heights, which has seen over 25% growth year on year since 2017. Using Investment Mastery’s investing methodology, his investment portfolio grew 147% in 2021, and now, still only in his 30s; while embracing the ongoing evolution of the e-learning industry, he is leading Investment Mastery through a transformational plan to expand internationally with a plan to 2.5x the business in the next three years and champion the combination of EdTech with FinTech through the ever adapting Investment Mastery membership platforms.