That kind of wealth is more attainable than most people think but there are no shortcuts. To get there is to work hard, save up and invest your money wisely. It is not something that comes in a matter of days nor months but years and here’s how you can start: 

Start off by acquiring the education needed to succeed and grow in your chosen career. This doesn’t just mean going to college or university but gaining professional skills that you have an affinity with and a career you can excel in. Learn to invest in yourself to advance your earning potential, then make money and start saving. 

Setting your goals right from the start is an important step to financial success as you strive to build a solid foundation. Without goals, you won’t know what it is you want to achieve. You also won’t be able to track your progress and celebrate milestones along the way. Make your goals specific, measurable, achievable, relevant and time-bound, in other words ‘S.M.A.R.T’.

Most people can do their banking digitally now and one of the benefits is the ability to automate your finances — sending your money automatically to investment accounts, savings accounts, and creditors. This allows you to build wealth effortlessly as you won’t skip payments and won’t be tempted to spend first and save later. 

Make sure to always clear your debts but it is also important to understand that all debts are created equal. Rank them in order of interest rate, from highest to lowest. Then, prioritise the debt with the highest interest rate, while still paying the minimum on all of your debts, in order to pay less over the lifespan of your loans.

Once you have the financial muscle to invest some of your hard-earned cash, consider investment-linked plans that can protect you and your family but also provide a financial safety net alongside wealth creation. Plans like AIA’s A-Enrich Wealth helps you realise your goals by growing your wealth via a short-pay savings plan that provides you with both savings and investment elements in a single plan. 

Building wealth has its ups and downs so don’t put all your eggs in one basket. Instead of just investing in a stock or a policy or buying a property, your wealth is better protected when it is spread around. Diversify your wealth and put it in alternative investments like exchange traded funds or perhaps even a small business that you believe in. But always make sure you do your research first and take prudent steps to protect yourself before investing your hard-earned money in something you might not be familiar with.

Wealth can be uncertain so you will always need to be prepared for any unforeseen circumstances that might deviate from your financial goals. Be disciplined as well and don’t let your indulgences go out of control as you continue to accumulate wealth. As the American radio show host and author Dave Ramsey says: “Building wealth is a marathon. It is not a sprint. Discipline is the key ingredient.”

References

https://www.imoney.my/articles/essential-factors-in-long-term-wealth-accumulation

https://www.imoney.my/articles/healthy-financial-habits

https://www.investopedia.com/managing-wealth/simple-steps-building-wealth/

https://fortunateinvestor.com/investors-build-long-term-wealth/

https://savology.com/6-healthy-financial-habits-2020/

https://www.cnbc.com/2016/12/21/11-simple-money-habits-that-will-help-you-build-wealth-in-2017.html

https://www.building-income.com/blog/2018/6/4/6-real-ways-to-build-long-term-wealth
 

The above articles are intended for informational purposes only. We accepts no responsibility for loss which may arise from reliance on information contained in the articles.