Wealth accumulation often manifests over time as part of a diverse and long-term strategy to increase your net worth. Here are five ways to grow your money
Although there is an influx of strategies to grow wealth through all life stages and seasons, there isn’t a one-size-fits- all approach as every individual is unique. With this said, it is important to understand the values that govern wealth generation and apply them to your own unique strategy. Here’s how:
Get the right expert advice – as a starting point seek advice from your financial advisor who will be able to assess your current financial position and guide you on your wealth creation journey.
Learn to leverage your assets – this involves strategically using good debt, assets and money at your disposal to reach your wealth aspirations. For example, borrowing against an existing asset could unlock funds that can be used to purchase other assets and broaden income generating opportunities.
Protect your wealth – as your earnings grow and net worth increases, so should your insurance and legacy planning prospects. Ensure that you consider covering yourself with disability insurance, home, and car insurance, and an umbrella policy for anything else. This also includes having ample emergency savings, so that you can weather any financial storm or pandemics that dent your income stream, as well as back-up sources of income to alleviate any variations in earnings.
Consider growing your property portfolio – property is one of the common investments that many affluent individuals and families use to grow their wealth over a period of time. This can be in the form of physical property or listed property shares.
Diversify your investments – as the adage goes ‘do not put all your eggs in one basket’. This investment principle has ‘stood the test of time’ as part of a broader wealth creation strategy.
How we think about and act with our money dictates a large part of our financial outcomes. The importance of wealth planning with a financial advisor cannot be overlooked. To grow and sustain wealth requires a solid wealth plan and sound advice. So dial your visit your financial advisor.
Words: Pravesh Sunker, regional head for RMB Private Bank.