3 elements of Wealth Accumulation

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by KCLau

in Money Saving Tips, Wealth Management, investment

There will be no complicated mathematic equation in this post. To accumulate wealth, we just need to maximize the below most important elements.

Saving
This is how much we are able to keep the hard earned money to ourselves. Can we save RM300/month, or RM2/day, or RM50,000/year? Pay yourself first!

Time
We must give enough time for our money to work for us. The younger we are to start saving, the better it is.

Return
Rate of return is normally associated with the amount of risk we are willing to take. If you know an investment instrument well, you will eventually bear lower risk as long as you know what you are doing. Get higher return from our money! Put our money into places where they can work really hard!

Imagine the box in the picture is the amount of money we accumulated. Increasing the value of the 3 basic elements, we will certainly get a bigger box —-> more wealth!

{ 13 comments… read them below or add one }

1 Relax August 13, 2007 at 4:06 am

It is very simple, but very important.

I think I can manage the first 2. The 3rd one is a bit shaky for me. I need more education for that one.

Reply

2 Jake October 21, 2008 at 3:57 pm

i agree, wealth accumulation takes time. It is a process

http://www.becomingyourownbank.com

Reply

3 CharcoalArt March 12, 2009 at 1:54 pm

Hi KC, I like your articles, they are straight forward and coincise. I bought your book last weekends. Your tips and advices are very practical. Many thanks. CA

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4 KCLau March 13, 2009 at 10:30 am

@CharcoalArt

Welcome!

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5 rob May 27, 2009 at 8:03 am

The question is.. where to save to get the highest ROI? Where to save??

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6 KCLau May 28, 2009 at 9:53 am

@ Rob,

Good question! Keep asking it and keep finding the answer.
At the end, we all have different set of answers. Something good for me might not be good for you.
Follow your own path.

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7 ahmad shamsul mohd zain April 26, 2010 at 10:39 am

hi KC

Recently, my wf do overlapping her Brakyat personal loan (RM200K for 20years, monthly pymt @ RM1,700). Balance from over lapping amt. we do as follows:

1. RM 10K (Children saving account)
2. RM 10K (Gold Invest Acct.)
3. RM 10K (Currency Investment)
4. RM 60K (ASNB)
5. RM 18K (Settle CCard Outstanding)

Can you comment my above action?

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8 KCLau April 26, 2010 at 10:53 am

Hi,

Your personal loan come with a cost (the interest). It is very important to make a higher return than the interest charged in order to put you in a better cash flow and net worth position.

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9 Hong April 26, 2010 at 2:13 pm

Need some advise on how to invest my 100k.

Was thinking to invest half on Gold (50k) and half as a 10% deposit to buy a condo at Mont Kiara for rental yield.

What you think?

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10 KCLau April 30, 2010 at 5:38 pm

You can invest in the area you are best at and interest you most.

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11 Sayeed May 4, 2010 at 11:09 am

For me, making and growing wealth, there is no shortcuts, it takes time, persistance, discipline and most important continuous education.

It is not really about which investment gives us the best ROI, as it keep changing with time, so being alert and keeping our savings and funds active would help us grow our wealth.

Learn and make more!!

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12 james July 24, 2010 at 7:44 pm

hi my wife has 150k in the bank fdeposit. but the interest rate is not good. where else can we invest it to get better returns. stocks?? tks

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13 KCLau July 25, 2010 at 9:32 pm

There are many places you can park your money. And most of the places are good parking place as long as you know what you are doing.

Reply

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