Effective Ways to Grow Your Wealth

As you have saved and continue to save for your children’s education and your retirement, it is also time to make your money work harder by maximizing your wealth. As you know your money in the bank may not even able to compete with the current and future rates of inflation to maintain your purchasing power. To maximize your wealth we are looking at the following:

• Getting better returns: The only way to get a better return for your money is to invest wisely. You can keep your emergency fund  in the bank but the rest of your wealth should be made to work harder for better yields
• Minimize investment risks: You do not want the hard-earned money that you have saved to involve in risky investments.  What you are looking for  is a long-term investment with the minimum of risks
• Combating inflation: One of the reasons to optimize wealth is to fight inflation to avoid your purchasing power to be eroded over time.
• Diversifying your financial resources: The old saying of not putting all your eggs in one basket is still valid. Diversification will not affect adversely your overall wealth and jeopardize your financial future when one part of your portfolio is not doing well.
• Getting Peace of mind: As you grow older, you don’t want to get involved in more risks in your investment, but stability and peace of mind.
• Make your wealth lasts as long as possible: You will enjoy financial freedom when the wealth you have created is able to last as long as you live.  You don’t want to depend on your children as they have their own families to take care of.
• Be posted: Read the financial section of your newspapers regularly and ready to seize opportunities of a solid investment. Get to know the economic situation of the world and take precautionary measures to safeguard your wealth.

  

It is not the purpose of this article to tell you what to invest. Here are some of the common investment channels to make your money growth:

• Equities
• Unit trusts
• Bond fund
• Investment-linked insurance policies
• Property
• Gold
• Currencies

Different investment vehicles serve different purposes in your wealth portfolio. It is up to you to choose the right one to meet your specific needs. As an example, you invest in the Singapore dollar perhaps you want to send your children to study there in future.

Wish you all the best in growing your wealth.