Making Your Money Work For You

Picture this… you’re basking in the sun on some yacht off the coast of Milan. You pour yourself yet another glass of Dom Perignon because you can want to and can afford to. Your money has earned enough in the last few years for you to have all the Dom you want to.

I’m not a stock market expert but I do work with some of the world’s best ones. Which is why I can confidently say that it is possible to make a lot of money using what you’ve already saved up. If you want to make your money work for you, here are some things I strongly recommend.

Get Rid Of Bad Debt

Get rid of your debt… not the kind that will help you buy a home and save taxes but the kind that lets you flash that new iPhone and drive that shiny Mercedes Benz just to keep up with your coworkers, friends, and neighbours. Being debt-free is the first step to financial freedom. “After all if your money is always working to catch up with interest, it’s not working in your best interest, is it?”

Essentially bad debt is money working against you – it’s your paying more than the true value of a depreciating asset, so do yourself a favour – pay off your debt first.

Buy Peace of Mind

Create an emergency fund for yourself that you can reach for when all else fails. By all else, I’m referring to the other things you must do! You must buy yourself a simple term life insurance and personal health insurance that covers all costs. These investments not only protect you from emergency expenses but also help save tax. However, the most important reasons to buy these is the peace of mind you will get. The last thing you want to worry about in a bad life situation is money – these simple tools go a long way in protecting you from future anxiety and stress.

Automate Your Investments

Don’t make investments an end of the month or pre-tax month activity. Invest first before the month’s spending starts (aka pay yourself first) and make sure you’ve set up some sort of automated Sip that also lets you cancel it on an occasional month without stress. I call this a SuperSIP. This ensures you invest first and then spend what is left, instead of going the other way around. You can do this yourself through a variety of financial products, I would, of course, recommend the Cube Wealth App because it really takes the pain out of finding the right investments and maintaining a monthly savings habit.

Track Your Money

When it comes to money, knowledge is power and you’d be surprised to know how many don’t know what their mutual fund investments are doing on an annualised basis, or how much the gold they bought 10 years ago has changed in value in annualised terms. You don’t succeed if you don’t track it. You need to keep an eye on your finances. Track your income and expenditure every month. Invest regularly. Track your portfolio regularly to ensure it is doing well for you.

Make Quality Investments

A lot of us start out alone without any help. Not having a wealth coach on your team means even the wisest of us can falter. You don’t want to invest in 10 stocks, 30 mutual funds etc. You want to invest in a personalised portfolio that is right for your life and your risk level. Find a wealth coach (Not the sales guy your bank sends masquerading as one). If you pick the right investments with the help of the right coach you’ve won half the battle.

Pay for Quality

Most of us wouldn’t trust the cheapest doctor for a cardiac operation. So, why trust an investment app based on the lowest fees? Do your due diligence and ensure that you are optimising for the best wealth creation, and not just the lowest fees. Don’t miss the forest for the trees.

That’s my two cents on how you can truly grow your wealth. And remember… you’re not looking for someone to come take over your wealth you’re looking for a wealth coach who can guide you and take the pain if small manual tasks away from you.

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