How to Grow Your Money

How many of you wanted to achieve financial freedom? Do you know that about 70% of Malaysian has financial difficulty after their retirement? There are actually a lot of ways to grow your money and to achieve financial freedom. But what are the secrets? Today, I shall share with you a few tips that I have found and practice on my search to grow my money. Most of these tips may look simple but are what I believe the top millionaires have used.

If you want to grow your money, start to grow it now. Not next month, not tomorrow but start today and use time to your advantage for the compounded growth. The longer the time horizon, the better for you and it actually lowers your risk too. Some people have no qualms about spending a little here and a little there but fail to realize that these small amounts can be huge amount in the long run. Each ringgit you save now is like laying a brick for your financial fortress. Therefore, the more you save, the faster you grow your money. A lot of people have the belief that they need to have a large sum of money to begin growing it. That’s nonsense. Many wealthy people are what they are today by starting small. Do not underestimate the power of starting small amounts saved and invested over long term. A few ringgit saved daily can means a lot. You must also cultivate the habit of saving and investing regularly. Do not save or invest once or twice a year. Do your best to save and invest monthly and practice good money management.

You can also attend courses, read books, magazines, even websites or go for seminars to effectively increase your knowledge on how to grow your money. The more you know about money, how it works and how to handle it, the easier for you to manage it. So do not stop learning.

Study loans, credit cards, personal loans, mortgages, overdrafts, you name it and they are all debt. To be financially free, get rid of your debt, no matter how small, always has interest working against you. Unless you can get significantly higher returns on your money, in other words, it can help you generate passive or residual income, if not, it is better to clear off your debt first. Imagine yourself without owing anyone any money, like your house, your car etc.

This is one of the best pieces of advice I heard. If shopping is what you like to do and you want to grow money, stop what you are doing. Instead of buying products, buy the company i.e. buy their stock. A study has shown that majority of wealthy people save and invest at least 25% of their earned income. It is not because they are rich; this is the REASON why they are rich. Remember “buy stocks not products”.

Do you often read about rich and successful people and hope that you will be like them one day? Take it a step further. Study them and find out how they grow and manage their money. Model after them. Unless Your parents Are Wealthy, Don’t Follow What They Did, chances are you will not be wealthy as well if you followed what they do with money or money advices they gave you. If you want to be financially independent, break out from the practices and money management habits of your parents.

A country need to have proper financial management to determine the in/out flow of money to ensure better economy. A company needs to have proper financial management to ensure business sustainability. Finally, individuals need to apply personal finance to prevent money problems from happening to you. The no.1 stress is money; do you want to be stress free? If you would say “YES”. Start now. While I cannot guarantee that you will be wealthy if you follow these tips but I am confident that your will be richer person than what you are now.