Financial Planning

4 ideas to grow your wealth in 2022

4 ideas to grow your wealth in 2022

This content is for information and inspiration purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult an independent financial adviser.

Wealth – or financial assets – are important means to your life goals. Whether you want to retire early, travel the world or live a life of greater “financial freedom”, wealth will help open the doors of life’s opportunities to you. Yet how can you grow wealth sustainably in 2022, especially with the cost of living rising? In this guide, our financial planners at Cedar House share four ideas to help you grow your asset base. 

We hope you find value in these thoughts. If you want to discuss your own financial plan with us, please contact our team for more information or to access personalised financial advice:  

020 8366 4400 or


#1 Keep appropriate reserves

Life’s unexpected events can derail your financial goals if you are not careful. Perhaps a family emergency happens – such as a life-threatening accident – and you need to take time off work to care for your loved one. Or, maybe you need to make a sudden, major repair to your home that costs £1,000s. During such times, it helps to have a decent cash buffer (in an easy-access account) to tide you over. This will help prevent you from needing to turn to debt, which can load you with heavy interest payments for months/years and lead to huge stress and instability.

However, in 2022 inflation is the highest in over 30 years – currently standing at 6.2%. Yet cash savings accounts – even the best ones – come nowhere close to this. Over time, therefore, cash will lose its value in real terms (even if your bank balance shows that you have “earned” more by generating interest). As such, be careful not to hold too much in cash if you are serious about growing your wealth. It is wise to consider other, higher-return-potential assets.


#2 Keep your risk appetite in focus

Many non-cash assets, whilst typically offering a higher return, also bring higher investment risk. Here, it is important to take time periodically to consider your attitude/stomach towards this risk. For instance, in early 2020 many people took money out of the stock market as equities sharply fell in response to COVID-19. Some funds lost as much as 25% of their value, and those who sold at the bottom of the market would have crystallised sizable losses. Many of these investors, therefore, were likely not honest with themselves about their risk tolerance. It would have been better for many of them to have built a more “conservative” or “defensive” portfolio and receive lower returns than take on too much risk and lose money. 

On the other hand, those with a longer investment horizon and higher investment risk tolerance should be careful not to be too “cautious” with their investment strategy. It may be that you can generate more wealth, over the long term, by including “higher-risk; higher-return” assets within your portfolio (e.g. equities and early-stage investments).


#3 Maintain diversification

Holding too much of your wealth in a single company, market or asset class is usually a bad idea. For instance, holding 90% of your wealth in property leaves you quite vulnerable to any shocks or regulation changes in the housing market. Rather, diversifying across multiple funds, countries and assets can help mitigate the risks associated with each one. 

For instance, if the US technology sector struggles, your portfolio will suffer less if you have also invested in other industries (e.g. healthcare, energy and consumer staples). If the stock market as a whole goes through a “bear market”, moreover, then your portfolio can be shielded from too much harm via your more defensive assets – such as UK government bonds (gilts). 


#4 Keep up-to-date financial protection

What would happen to your wealth and finances if you – or your partner/spouse – suddenly could no longer work or look after the children due to sudden ill health, or injury? What would happen if one of you died before your dependents left home? Tragic events like these can undermine a financial plan, and it helps to have contingency measures ready just in case. 

Life insurance, for instance, can help support your surviving family in the event of premature death – possibly even helping to pay off the mortgage in full. Other policies can also help preserve your wealth such as critical illness cover (provides a lump sum if you are diagnosed with a “critical condition”) and income protection (which offers a replacement income). 

However, be careful not to take out needless financial protection. For example, if you have any “death in service” benefits available from your employer, then this might reduce the need for a personal life insurance policy. You should also consider how long you need protection to last. If you think you will certainly eventually need a life insurance payout, then a “whole-of-life” policy may be most appropriate. However, if you only need cover for a limited time (e.g. until the kids have left home), then term insurance may be better.

Be careful to also consider whether you may need power of attorney – empowering someone else (e.g. a trusted family member) to make decisions about your assets on your behalf, should you be unable/unwilling to make these choices yourself in the future.



Interested in discussing your financial plan with an experienced financial adviser? Get in touch today to discuss your financial plan with a member of our team here at Cedar House via a free, no-commitment consultation:

020 8366 4400 or


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