Building Your Wealth in 2022
Is 2022 the Worst Year for Billionaires
If you have paid close attention to the market, you might have noticed that 2022 is not a great year for the market. In 2021 and even in 2020, big businesses became even bigger despite Covid Pandemic, however, since the beginning of 2022, the market is sluggish. Some say the recession is coming and some say the recession is already here. Whether the recession will be here or not, we have already noticed a great loss in the stock market, crypto market, real estate, and inflation.
Recently, Bloomberg reported that Elon Musk, Jef Bezos, and Mark Zuckerberg lost over $50 billion of net worth. All thanks to the panic sale.
According to one estimation, since the beginning of 2022, the world’s top 500 billionaires have lost 1.4 trillion dollars worth of wealth. Elon Musk alone has lost $62 billion, Jeff Bezos has lost $63 billion, and Binance CEO CZ has lost $80 billion.
Most of the billionaires who lost money in 2022 are from the Tech industry and crypto industry. Coinbase CEO lost 84 percent of his wealth and is down to just $2.2 billion net worth. Binance CEO net worth fell from $96 billion to $12 billion. Crypto Company called Celsius Network has now filed for bankruptcy.
Now, people are asking is this rock bottom, or are we going further down?
Want to Build Your Wealth? 2022 Might Be Your Year
Do you know how much was bitcoin in its all-time high price? In November 2021, Bitcoin crossed $68,000.
Do you know how much was Ethereum when it reached an all-time high price? In November 2021, Ethereum was $4800.
What is the price of Bitcoin and Ethereum at the moment? Bitcoin is $20,897 and Ethereum is $1211.
Do you know what Tesla stock price was at its all-time high and how much is the current price? In November, 2021, Tesla's stock price was $1229 and the current price is $714
The current Microsoft stock price is $254, its all-time high price was back in November when it was $343.
These are just a few examples to illustrate how the companies and assets have lost value. If you check every market, whether it is stock, equity, real estate, or crypto, you will see that the markets have substantially lost money. They even say over 1.4 trillion dollars have been completely wiped out from the purse of 500 billionaires globally.
What does this mean to the average investor? What does the market going bearish indicate for small investors? That it is a great time to flex muscles in buying assets, investing in various markets, and holding your portfolio until the bearish run ends.
How to Build Your Net Worth in 2022
Net worth is your cash, liquid asset, and fixed assets minus your liabilities. In other words, your net worth is your actual value in terms of money which can be calculated by adding your cash reserve, the monetary value of your investment portfolio (stocks, crypto, etc.), and property and then subtracting your debt other liabilities. Your net worth measures your wealth reserve, becoming rich actually means building your net worth.
So, how do you build your net worth?
In order to build your net worth, you need to use your earned income to build your portfolio and assets. For example, if you are receiving a monthly paycheck, you need to save some percentage of your monthly income and use your income to buy stocks, bonds, security of deposits, or invest in hedge funds, mutual funds, real estate, or even cryptocurrencies.
You build your net worth by removing your liabilities and adding more cash reserve, building more portfolios, and buying more assets.
You begin by paying your debt. You pay your loan, credit card bills, and mortgages, and clear all liabilities.
You then start saving money.
You don’t just let your money sit in the bank, you also start investing in various markets. You diversify your portfolio.
You then start buying properties, a house, for example.
When you receive a return on your investment, you reinvest and continue to build your wealth.
In order to build your net worth, you need three things, one, a strong income source, two, a saving habit, and three, investment. Building your net worth means building your wealth, you can do this only when you earn well.