5 rules to grow your wealth
Wealth management is more than just investment advice, it encompasses a person’s overall financial life. You can consider it as a consultative process wherein the advisor gleans information about your wants and tailors a bespoke strategy utilising appropriate financial products and services.
There are some rules that one must always keep in mind irrespective of your financial goals –
Know your worth
To reach the finishing line, you must first know where the race begins. Figuring out your net worth is the first step towards formulating a successful financial plan. The best way for you to do this is by drawing up a list of your assets and liabilities. It also gives you a broad idea of your current asset allocation.
Start with savings
Plan and save month on month. People with the largest retirement accounts are not always the highest earners. You simply have to believe in paying yourself first.
Invest wisely with enough knowledge
There are several schemes and products in the market to invest in. However, it is important to understand where you are putting your money. It is never wise to gamble your hard-earned money on products that are complex to understand.
Choice and mix of products suitable for you will depend on your life stage and your risk appetite, combined with your goals. It is best to speak to a financial planner for an organised wealth management plan.
Never put all your eggs in one basket
You would run the risk of losing all the eggs if the basket falls. To avoid this, place eggs in different baskets. The analogy holds good while investing money as well. You must explore and invest in different investment schemes. It also minimises the risk in your portfolio and helps in preserving capital and protecting savings.
Plan for retirement
Retirement planning is one of the most crucial part of wealth management. You must invest in schemes that help secure your life post retirement. By having a safe and reliable retirement plan, you can lead a peaceful and stress free life.