We often wonder what is our money doing for us. Because we do a lot for our money. And money is a funny thing. When you’re in your 20s you are wondering how to make it, and how to make it fast? By your 40s you’re spending it wild and fast while chasing it. And by the 60s you’re hoping that you’ve built enough wealth to sail through your golden years.
But guess what? Over the years, wealth is always growing.
Unless you’ve kept it in piles in your home, without offering it a chance to grow!
What is wealth and do you see it growing?
Wealth, most commonly defined as an abundance of money or something valuable could mean different things to different people. While it could mean tangible money for some, it could mean real estate properties for some. While some feel gold and commodities are wealth, some might find wealth in the rare antiques and art collections of the world.
What you value, becomes your wealth! But if you’re looking to grow wealth, you must start thinking and looking at it as money and the management of that cash flow.
When you start saying wealth is MONEY, you will start looking at how to make that money work. You will explore diverse avenues to save and grow wealth, rather than having it idle out in bank deposits at lesser growth rates.
Since banks are not growing wealth, then what does it mean to grow wealth?
Growing wealth means sustaining your today’s lifestyle for the many coming tomorrow’s. Growing wealth means being able to keep pace with inflation.
Growing wealth is a long-term, lifelong commitment to ensuring your money grows. This is why only a small percentage of people globally are wealthy.
Let’s say you drive a Honda City today, but five years down the line you would definitely look for an upgrade. And five years, later your wealth should be able to accommodate this lifestyle upgrade.
Your wealth must grow in a way where you are able to do what you thought or planned. And fulfill these plans, without causing a dent in your pocket or disturbing your mental peace.
Sounds interesting? Let’s look at growing wealth.
Growing wealth doesn’t mean just earning more money while working a job, or adding more clients to the business. Don’t get me wrong, earning more money is great and defines you as rich of course. But growing wealth is more about letting your money work for you, while you are out achieving other things and earning more money.
A few things you can do to grow wealth today.
Growing wealth is as much about saving as it is about earning…..
Track your expenses! That branded watch you bought because it was on sale? That fancy gym membership you paid for in advance as a new year resolution? That new designer dress you bought for your friend’s wedding? Those everyday lunch takeouts?
All the above seem small in the larger scheme of expenses, but they are that – expense. Think of them as lost money you can never grow!
Tracking your expense lets you analyze what you’re spending, where you’re spending, and why you’re spending. It’s a good reality check on expenses that could have been avoided.
First Invest, then Spend
Yes, you’ve heard it time and again. But still not put into practice? Start! Since you’re now tracking your spending, you know exactly what to drop and use that money to invest! Invest where?
Start with SIPs
Start safe, start with SIP. It’s a long-term habit, averages out make fluctuations, builds a good corpus, and a good investment habit. Systematic Investment Planning is a great option if you are just starting investments and cannot dedicate too much time to actively investing.
SIP’s help you build a financial discipline of steadily investing fixed sums monthly, irrespective of the market mood. Set up the SIP date in such a way that you invest even before you’ve had a chance to spend.
Create a diversified portfolio of different asset classes investing in different geographies
Everyone who has created wealth will tell you one thing – they invested their money across different asset classes, and most of them spread it across geographies too. However, where and hor to invest can be overwhelming. There are thousands of stocks, mutual funds, and various other investment products to choose from. Various websites offer investment recommendations and to top it all, the market is flooded with self-proclaimed investment gurus offering free insights and tools on YouTube, and other social media channels.
You may decide to manage your own wealth by searching for recommended stocks over the internet and listening to the popular investment gurus on media. But unless you have deep knowledge of the intricacies of financial markets, this approach is about as helpful as doing a Google search on a health problem and trying to diagnose themselves. Don’t try to be an expert on a subject you have limited knowledge of. Instead, hire a wealth manager
Besides it being my job, I firmly believe that everyone who wants to grow their wealth must hire a wealth manager. Would you rather invest on your own or with a manager who is an expert and does this as daily living? Wealth managers work exactly as other professionals do. Just like a physician for health or an architect for the foundation of your home, wealth managers specialize with growing wealth!
Wealth managers spend 10-16 hours a day working on money management. They have the expertise and tools to manage your money and ensure your wealth is growing.
Yes, you can invest on your own, but can you do it efficiently to see your wealth grow? That is a question left for you to introspect. Take that time out to grow wealth, save, invest, and speak to a certified wealth manager to grow your wealth.