5 Stages Of Wealth: What They Represent And Financial Tips You Need At Each Stage Every one of us dreams of becoming wealthy. But did you know that there are actually five different…
In our last article, we discussed about the five different stages of wealth. Obviously, everyone wants to aim for the top tier of the five stages, i.e. financial abundance.
To help our readers aim for and achieve financial abundance, we recommend three simple and doable approaches that you can take.
Top 4 Motivations For Singaporeans To Build Wealth
But before going into the three approaches, let’s first look at why we want to build wealth. Well, that’s because having a clear goal in mind is a key step to achieving it.
According to St James Place, the top four key motivations among Singaporeans that are driving them to build wealth are:
For many of us, financial security and protection is definitely the top priority. But since these motivations are not mutually exclusive, it may not be the only goal we have. You may even consider stacking them on top of each other.
For instance, you may want to secure your own financial security and protection while at the same time, provide a good life for your loved ones.
3 Approaches To Help You Achieve Financial Abundance
Knowing where you are headed towards with a clear goal is the first part of the equation towards achieving financial abundance.
The next step is to leverage on the right strategies to help you grow and maintain your wealth so that you can leap towards financial abundance.
Among the different approaches to build wealth, basic financial literacy is the most popular skill quoted by respondents. 76% of respondents think that they will be wealthier if only they had more of basic financial literacy.
It is no surprise that basic financial literacy came out top among the approaches for building wealth. That’s because financial literacy encompasses a multitude of skills that helps you be in a better position to grow your money. From budgeting to financial protection to investing, basic financial literacy helps you to navigate every kind of terrain in the world of finance.
Tip: Reading widely is the best way to grow your financial literacy skill. At Moneyline, we help break down complex financial terms into simple to digest concepts that anyone can understand.
Once you get your basic understanding of financial literacy, the next step is to grow it. 75% of surveyed respondents find that having a disciplined investment approach is the key to growing wealth. And here’s why.
Having basic financial literacy is just the first step. Now that you have the knowledge, you need to apply that knowledge. Interestingly, there are a lot of people who face inertia in applying that knowledge because of fear. It could be the fear of loss, fear of the unknown, or simply fearful to take the first step towards investing.
Another challenge that many face is the inconsistency in investing. Some of us might have taken that first step, but we tend to forget about the subsequent steps. We get too busy in life to make investing a habit.
Tip: To make investing a habit is actually really simple. For instance, you can set up a sum aside to invest monthly through an investment plan or portfolio. Or you can buy an endowment plan that acts as both a financial protection and a tool for growing your money.
Time is an important element when it comes to growing wealth in the long run. You can’t expect to grow your wealth in a short time span. Even Rome wasn’t built in a day.
A common mistake among newbie investors is that they get impatient with their investments. For example, if the investment drops 5%, the sense of fear takes over and you want to sell it. And when the investment goes up by 5%, you want to bag your win quickly and move on, only to lose out on another 50% of gains if you had held on longer.
Therefore, an important approach towards investing is to be patient with it and let time run its course.
Tip: To have as much time by your side as possible, starting your investment journey early is the best way to do it. Being early in the game means having more years and runway to let your capital grow. It also gives you more room to make mistakes along the way.
Yesterday was the best time to start, but today is the next best opportunity to begin investing. Thus, if you haven’t already started your own investment journey, you would want to start with a comprehensive financial planning session to map out your needs, wants, current income, and expenses. Addressing these will help you figure out how much you have available to invest and grow.
Still Not Sure Where To Begin Your Journey Towards Financial Abundance?
We know that all these can still be daunting for some of you. That’s why our team at Moneyline.sg is here to guide you on this journey. You can set up an appointment with our team here and we will reach out to guide you through your own financial plan.