Growing wealth takes time, hard work and strategy.
Ever wonder what are the top money secrets of the super rich?
Here’s 7 of the best tips.
This article was written by a Financial Horse Contributor.
1. Multiple streams of income
Having multiple streams of income is a common denominator of the super rich.
As Warren Buffett famously said, if you don’t learn how to make money while you sleep, you will work until you die.
2. Don’t waste money
Rich people don’t waste money.
Rich people are careful in how they spend their money.
They look for value, not just low cost.
Do you know the value of your time?
Rich people rarely exchange time for money. They will not shy away from spending money if it means achieving their goal in a more efficient way.
In some instances, you have to spend money, to make money.
3. Smart liquidity
Rich people are very careful about liquidity.
Often times, they are also business owners, so it is extra important to have liquidity.
Liquidity is important:
a) in case of emergencies; and
b) to capitalize on great opportunities
Fortunes are made in crisis, and you need to have the funds when opportunity knocks on your door.
Smart investors will make sure that their cash buffer is also working for them.
For instance, in bonds (SSBs/ T-Bills) or a high yield savings account.
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4. Know what you are paying
Rich people know what they are paying for.
Smart investors avoid unnecessary fees.
Rich people optimize their finances, and make sure they are getting a good deal.
5. Asset allocation
Asset allocation is key to growing significant wealth.
In order to supercharge your finances, you have to make sure that you are investing right, and in the right areas.
Make sure that you always have a bird’s eye view of your asset allocation, and adjust it accordingly to your risk appetite.
6. Tax optimization
Rich people are masters of tax.
Make sure you understand your taxes, and consult an accountant to optimize your taxes.
In the Singapore context, make sure you are optimizing CPF / SRS, and getting your appropriate tax relief.
Also! Give back, check out the wide range of great causes you can give back to while enjoying tax relief.
7. Listen to the right people
Rich people know the value of having the right advisors.
They listen to the right people.
Network so that you are in right rooms with people you admire.
Learn from others, and learn from the best.