Recently, corona virus cases are on the rise. People are buying many supplements to boost their immune system to protect their health. How about boosting wealth?
Full MCO is happening, some people are financially immune to this lock down regardless of how long it will take. These people are having multiple and consistent income sources despite lock down. However, there are some people cannot even sustain financially for a week of lock down.
What are the differences between these 2 groups of people? What the first group has done?
Do you know that statistics show that more than 53% of Malaysians are not prepared for retirement, many are still struggling financially when MCO is announced. How can you have vaccine to protect your wealth? Or even Vitamins to boost your wealth?
The number 1 reason why people cannot get the financial stability is because they do not save and invest at the same time. Some people fail to save, and so they have not had the financial stability. Some people only save but do not invest, so they could not grow their wealth.
Hence, saving is the vaccine, investment is the vitamin for wealth. How can you ensure that you can save? Well, theoretically there are 2 ways – you can either increase your income or reduce your expenses. You may have heard many people saying that do more side hustles, be more hardworking you shall have more income. You might come across many people asking you to venture into direct selling, e-commerce to earn more income. You might have more money doing these. But are you able to save? More income does not guarantee more saving. Hence, reducing expenses is the way to ensure more saving. When you have the habit to spend less, when you have more income, you will save more. So the vaccine is actually to look at your expenses, never spend more than what you can afford. If you are currently having debts, restructure your debt with lesser interest. Saving and cash flow is still the key to financial stability which gives you vaccine to protect your wealth.
Investment is the vitamin to boost your wealth. The number 1 enemy of wealth is inflation. If we only save our money in the bank at 2%, our wealth is decreasing in view of the higher inflation rate. This is why the longer we wait to invest our money, the worse our financial situation becomes. Our purchasing power is dropping without us realizing. Hence, investment is crucial to help us grow our wealth. To invest successfully, an investment plan is required, including understanding the risk tolerance, investment goal and investment yield required. The final goal of investment is to have more passive income. We want the money to work harder for us. When we are initially investing, we might only target capital gain because we want our money to grow to a certain stage so that it is sufficient to generate the passive income that we want. When we have investment income, we are better prepared for any emergency event when we are unable to work. Also, we are able to enjoy the freedom as we no longer need to worry about our job.
You can receive constant broadcast message relating to wealth creation to financial freedom through Telegram. Click here to subscribe to the telegram for the weekly newsletter.