Being financially educated is highly important and you should start to learn wealth management techniques if you do not know of any at this present moment. It is never too late to start educating yourself to have more wisdom.
Without this knowledge, you may not be able to manage money well. As mentioned before in a previous article of ours about how a Toto Millionaire can become bankrupt if he/she does not use the right techniques when it comes to managing money.
Today, an article came out in the Singapore Straits Times about how a Widow of killed Changi Airport Worker used one million in a span of two years. Now, she is broke.
Mistakes do happen since we are all human but we must always learn and grow from it. It’s either we learn from our mistakes or we learn from other people’s mistakes. The incident of this family losing one million does have some learning points from it.
Here are five simple tips of Wealth Management:
1. When it comes to investing, there’s always a risk. Any investments has risks. Even investing your money in the bank has risks. Always think of ways on how you can reduce it.
2. Reduce expenses where necessary and try to grow passive income from the money you earn.
3. You achieve financial freedom when your passive income exceeds your monthly expenses.
4. Seek advise of someone with a lot of experience when in doubt (not your relatives or cousins).
5. Wealth Management is all about adopting the right system. With the right system, you’ll be applying techniques that will help you to manage or create wealth. Everything is a system. Even our body is a system itself. Our body is an example of a PERFECT system.