Monday, January 7, 2013

Multiplying wealth

What do you do when you get your first big fat bonus? Okay, not necessary big bonus, as long as you have extra money in the bank, what do you do with it?

Have you noticed that how money makes money? Ibu and I had always talked about this because you can see the richer getting richer because they ensure the money that they have will make more money for them in the long run. Like when a man starts an airline business, he furthers it to owning a football club in one of the most important Premiere Legue, start affordable hotel line around the world and the list goes on (sounds familiar?)

So, let's us all discuss and share, how do and don't we multiply our wealth (regardless of how much do you have in your account now):

One : Save up. We sometimes forget the basic and foundation of multiplying of wealth. We usually save our money to saving account since our monthly salary is being credited to it. Some people have current account, especially those with run business, where you can have the cheque book and of course a fix deposit. An account that requires you to save a specific amount of money on a specific duration. The bank will give you back the money with spefic amount of dividends in return. Of course both saving and current account would also give you some dividends, but not as much as fix deposit.

Two : Invest. There are many forms investment. I am sure, most of us are familiar with Amanah Saham Bumiputra (ASB), Amanah Saham Nasional (ASN) (and its other fund) and on the very recent,  Amanah Saham Hartanah (ASH). Next, there are specific Unit Trust Fund that you can also invest in. Seek for good advice from the best agent, they will be able to facilitate you. Even KWSP had allow the our first account to be invest to specific fund.

So, KWSP will send you acknowledgement that an agreed amount in your first account is being used for the  specific unit trust for investment.

And your agent will send you details on them

The same goes with AHB, they do not have saving book as ABS, so they will send you details on your investment

Three : Gold/Silver investment. I am not really familiar with silver investment but nowadays, there are many type of gold investment. Other that physical gold in form of wafer, coins, bars, you can also invest in gold account where you saving is base in the daily price of international gold. Now, most bank institutional are also offering their `local' gold wafer and bar and they offer you to save keep you invested gold. Not only the pattern of the engraved wafer is unique, it is also safer.

Four : Property.My favorite topic! I know many people who starts the property investment on auction properties. I know one friend who is owning 6 auctions properties that when he re-finance all the houses, he gets an amount of money to start a new business. I know an agent that owns nearly 30 properties at Denai Alam, and he basically lives with selling them.

Five : Land investment. Something that I have learnt on very recent. One of our friends had share on how he invested on land property. Basically, he bought an acre or two of land and divided the land to a few lots. The lots are being sold to to individual, to build individual property (house). The concept is quite same to property investment, but my friend punya ayat mmg best, takdela hari ni kita tidur, esok tanah rumah kita bertambah 1 meter,kan? What he's trying to say is land property is not something which akan bertambah, semakin berkurang, so the value is higher.

Six : Insurance. There are many type insurance, life, health, education, you name it. A long term saving for future benefits.

Seven : Starts a business. There are many online business that we have seen on the net. I know a few friends who are taking orders to design dulang hantaran, preparing candy buffet and so many others. There are many people who are looking for any sorts of services and stuff, you just have to show other people of what you can do!

And of course ultimately, the best way to multiply your wealth is through zakat and sedekah. Nothing can defeats that. The reason we multiply our wealth is also to ensure that we can share our wealth with others. Ayah always said, duit yang masuk dalam akaun kita setiap bulan tu, bukan semuanya milik kita. Kadang-kadang kita ni pengagih je. Ha, makan dalam tak? Hehehe!

And, how about the other way around? What we shouldn't do in managing wealth?

One : Unnecessary liability. Of course, this is individual view. But, for me, car is a liability. Unless, you are earning so much more than your monthly expenses, yeah, spend them on your car. But, if it is your first salary, you do not own any feasible asset or fund, `investing' it on expensive car, does not help. 

Two : Apply for personal loan. Be very smart with personal loan. Remember, money makes money? If you apply for personal loan to invest into something definite such as starting a business or your first time to buy an auction property etc, that's cool (but you still need to really study whether the dividend or keuntungan outweigh the interest from the personal loan). Not for shopping or to pay your amounting credit cards.

Three : Credit cards. Do we really have to talk about this?

As conclusion, I do not believe in short cuts or too good to be true investment offers/proposals. Be smart, read, ask and share. Most of our people, we have always dengar cerita org je, have no effort to read and ask for information from the right source. At the end of the day, we start pointing finger to others. So, think about it.

I am not an expert tau, what I am doing is just sharing my knowledge and what I know from reading and discussing with some good friends. And of course, you are invited to share your knowledge too! Please do =)

Hanie Adzman

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