Even though there are multiple methods available to manage and increase wealth, some rudimentary rules can help you get a fair idea on how to enhance your income.
Time waits for nobody, but as an investor, time can work marvellously in obtaining compound interest and further returns, provided we start saving, early and regularly. Over time, the interest and dividend earned can exceed your total investment by a huge margin.
Just like you don’t put all your eggs in one basket, you shouldn’t invest all your money in one single asset class. Diversifying your wealth is a fruitful way of minimising risk. Since every asset goes through a good and a bad time, spreading your savings like gold, cash, property etc. over different assets can be beneficial. Even if one investment sector plunges, your portfolio will not suffer a lot. Example, how Gold has given 50% returns in the last one year while Property, Debt and Equity have all suffered.
Since a fool and his money are soon parted, you should keep in mind that if something sounds too good to be true, you’ll end up getting scammed if you’re not careful. A large number of people, even with adequate financial knowledge, fall prey to such offers. So, the next time when an African prince asks you to send him some money, be assured that its nothing more than a con trick. Same applies to many insurance schemes and Multi-Level marketing plans.
The secret to getting off to a flying start is to focus on annuities. Novel limits have been put on contributions to superannuation, both pre-tax and post-tax. Those with a salary or a wage can gain by first increasing their pre-tax contributions and then focusing on post-tax contributions.
Ever heard of good work without good planning is nothing? A financial coach can assist you to navigate in the world of annuity and taxation. They are not only knowledgeable but also have in-depth experience. He/she can empower you to control your financial destiny in such a way that money becomes your slave rather than the other way around.