Maintain and Multiply Your Wealth
You have just got made it big with a unique business idea or have been promote to an executive position and you're seriously thinking of how to spend your new found wealth. You are considering buying the latest expensive luxury cars or thinking of buying a big condo in Makati or a townhouse in the plushiest subdivision. Hey you have more than enough to burn right? What's next? Expensive dinners with your wife and family, or how about a mistress? Since you can already afford to get one. But before thinking of new and crazy ways to spend your wealth, think of how to maintain your wealth. Getting rich and maintaining your wealth are two totally different things. People who get rich and spend their money unwisely are often poorer than they first started. Having lots of money makes people think they can afford the fanciest cars and the nicest homes and often get a loan thinking the good times will never end. But not everything last forever and in an event that you can no longer sustain payments for your fancy car and the mortgage of your house, it will be repossess and you will be back where you started but a lot poorer and not everyone can rise up again after having their properties repossess. Pretty scary scenario but it happens more often than you think. Just look at the number of repossess cars and properties offered up for sale by banks and other finance agencies.
Maintaining you wealth requires careful planning and investing so you can multiply your wealth. But how can you multiply your money while safeguarding your future? The answer is Investment options. When it comes to investments, the average Pinoy is often lost and confused. He is already having enough trouble balancing his checkbook and managing his cash flow to pay for living expenses and perhaps some loans. Who has the time, resources or even the wits to invest in business, stocks, bonds, UITFs? Experts say that the best way to make the most out of one's money is to diversify and try out various options. But the bigger question is, which option to try? Which would be safe? What would work? Well the answer to those is it depends. Its depends how much money you are making so that you can allocate a portion of your earnings to investments, how long you are able of willing to lock in your money and how much risk you are willing to take in investments that can actually make you loose money. The safest and obvious choice for investments is time deposits. But returns are low and sometimes you loose out to inflation but are the safest to invest in mutual funds and UITFs offers higher yields but requires you to lock in your money for a longer periods of time. Stock Trading offers the highest returns and is also the riskiest to get into but the rewards are worth it. My personal preference in spreading my money is 70 percent in time deposits, 20 percent in mutual funds and 10 percent in stocks. Never invest all your funds in one investment vehicle.