Working hard enough to amass an amount of money that most people would consider a fortune is a challenge that can take many years to complete, especially if you’re one of the bootstrapping entrepreneurs who has earned your wealth through sheer determination rather than inheritance. Of course, fighting such a long and difficult battle is always worth it when you’re able to look back at the fruits of your labor, but the idea of losing what you’ve worked so hard to build can be absolutely terrifying. With that said, here are four steps any entrepreneur can take to protect the fortunes from misfortune:
- Get a Life Insurance Policy and Write a Will
Many people put off the step of getting a life insurance policy and writing a will because they don’t want to think about the possibility of their eventual demise. That’s certainly an understandable form of hesitation, but it’s also an irrational fear that could stop you from giving your family what they deserve when the day finally comes. Do yourself and your loved ones the favor of comparing life insurance plans and writing a will to designate how your wealth would be distributed.
- Practice Diversification
If the goal is to protect your fortune from substantial loss, then it’s never a good idea to keep all of your eggs in one basket. Even if a single endeavor has produced most of your fortune, it’s wise to begin allocating some of those funds towards other kinds of investments. A good investor will try their hand at any opportunity that looks interesting. That way, you’ll be in a better position to find new profitable investments that could wind up not only protecting your fortune, but increasing it exponentially.
- Store Wealth in Different Forms
Keeping most of your money in a single business bank account might have served you perfectly fine thus far, but it’s certainly not the safest route to take for long-term security. Ideally, any decently wealthy individual should try to keep about 5 to 10 percent of their wealth in the form of precious metals like gold and silver. You may also want to convert a percentage of your funds into cryptocurrencies like Bitcoin (BTC). On that note, BTC doubled in value during a few-month span in 2019 from around $4,500 to $9,000, so if an investor had put all their money into BTC at the beginning of the year, they would be twice as rich right now.
Avoid Creating Excessive Debts
Finally, another simple and straightforward tip that can help successful entrepreneurs tremendously is to avoid utilizing the amount of credit that is available to you. Once you get to a certain level, you could get approved for credit cards and loans that could wind up sinking you later on. Likewise, don’t depend too heavily on money from investors, as you might have a hard time paying them back if your business goes south.
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