5 SIMPLE and Easy tips to help you grow your wealth
Building your wealth can be one of the most challenging yet exciting and rewarding pursuit in life. Early retirement, financial freedom, etc are all goals that many people are working hard towards.
As we wrote last week in the 3 good habits for making better financial decisions, keeping your emotions at bay when making decisions is critical to how you trade and invest.
When you start your wealth building plan at an earlier stage in life, it gives you more space and pace to make plans comfortably. With more leeway available, you’re less likely to make a rushed decision or have your emotions affect your decisions.
To help you get started on training yourself to make better and smarter decisions, here’s 5 mindsets you should have to start building your wealth.
1. Investment is for the future
With an average household income of $10,336 with 3.35 person per household in Singapore, this just means that each person in the household earns about $3,445 per month.
With these limited funds and increasingly expensive cost of living in Singapore, I think it’s only logical to look for ways to grow our wealth to reduce the insecurity of being unable to put food on the table or pay our bills.
Having a wealth building plan earlier means you now have more time to grow your wealth. You also have more time to learn strategies, find out your investment style and to pace yourself towards your financial goals.
While chatting with a friend over coffee the other day, she mentioned how she didn’t want to invest because it takes too long to get the rewards. Instead, she would rather use the money she and buy herself a branded bag to use now.
The instant gratification she could get from the bag was more tempting than the rewards she could get from investments in the long run, but would that be practical in 10 years?
Every decision you make today will ultimately affect the financials of the future you.
2. Keep financial liabilities and commitments to the minimal
One crucial way you can build your wealth is to limit your liabilities and commitments. This involves the bills you have to pay on monthly basis, or perhaps impulse splurges that could give you a short-term debt.
So how do you minimize your financial liabilities and commitments?
One way you can do this is to make purchases within your own affordability and cash available.
Perhaps you want to own your own car but you know that if you do buy one, the hefty monthly installments later on will weigh you down, then maybe you should re-consider this decision and spend within your means and focus on growing your wealth.
Once you have more cash, you can then afford the better things you want in life.
Some other ways to minimize your financial liabilities and commitments is to limit and cut down on the expensive items in your lifestyle. Forgo the expensive monthly gym subscription and choose alternatives that could save you some money; for example, consider the ActiveSG gyms around your area.
3. It’s better to start small than to not start at all
The biggest limiting mindset most people have that stops them from investing is that they think they need a large sum of funds at their disposal to get started. They think that it’s “not enough”. But think about this, rome is not built in a day.
If you are not willing to take the first step to make a small investment, then you can never start your wealth building plan.
However, if you are willing to just put in $2000, $1000 or even just $500 of your monthly salary into investments, then you’ve already begun on your journey to get rich.
Every baby step you take is a step closer to your financial goals.
4. Your destiny is in your own hands
Successful people are not people who wait for something to happen, they take action, they invest, they grow their wealth, they make sure they achieve their financial goals.
They don’t just sit around thinking about how nice it would be if they were reach. They don’t just dream, they make sure they achieve their dreams.
It’s easy to get started.
Think of the people you admire, or simply look at the successful people, pick the traits that you love and hate about them. Mold yourself into who you want to become. Invest in yourself, try to develop the traits you love and avoid those you hated.
Study people’s success, learn it, and replicate it.
The important thing here is to act on it rather than sit on it.
5. Enjoy the process
Every dollar you put into investing is a seed to your financial future. It may be frustrating sometimes to learn about something, or perhaps you may feel angry when you didn’t make a win, but that’s all part and parcel of your wealth growing journey.
Learn from every loss and try to replicate every win. It might be a long learning process, but you are growing closer and closer to your ultimate financial goals.
Don’t worry too much about each loss you make, review your investment portfolios regularly and make sure your milestones are met. As long as you’re diligent and committed towards the ultimate goal you set, financial prosperity is not just a dream.
The day will definitely come so you should enjoy the process in achieving your dream.
To start your investment journey, sign up as an investor with us and start investing from just $100!