Easter event: How to find the secret of building wealth

Hello everyone. Today, let's talk about something not related to stock market, instead, the secret of build wealth.

Of course, compared to those super successful people, I am still far behind from them. However, I believe that one day I will be able to reach that level!
Same, below is the full video and the animated version of this post. If you find that my post is helpful, please give me a like and subscribe my channel to motivate me! Oh ya, this post was completed when I was confirmed with a Covid + yesterdau So my voice could be not energetic enough (but hopefully my voice is sexier? )

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When we talk about building wealth, many people may think that we need to earn a lot of money. Yes, earning money is important, but it is not the complete formula to build a wealth. To me, money is only part of the formula of wealth. To me, the formula of wealth is:

Wealth= Healthy body + Financial Freedom + Mindset Freedom

I guess no one will argue with me that health is uttermost important to everything. Without a healthy body, we can’t do, or not able to enjoy everything. Financial freedom means that we have enough passive income to cover our expenses without worrying any financial issue. It is up to different people to have different level of passive income to reach their desired freedom. The last one is mindset freedom. We are free from the toxic environment, free from toxic people, or we in simply: We are feeling hopeful for whatever coming to the next.

I guess no one is interested to listen to me on how to keep a healthy body or healthy mindset in my channel, so I will skip it. Let’s focus on the financial freedom part.

To me, there are three critical steps to achieve financial freedom. Let me represent this with a pyramid:

1. Protect wealth

2. Reduce debt

3. Build wealth

Wealth protection is the most critical part and it is a fundamental for everything. For example, if we suffered a serious illness, accident, or anything out of our expectation and control that lose us ability to earn any income or use out all our saving, all our wealth will be wiped out instantly. The most straight forward way to protect our wealth is getting an insurance. No worry, I am not an insurance agent, so I am not going to sell or promote any insurance. If something bad happen to me, at least the insurance would protect myself, and the most important, my family.

Next, debt reduction is also very important. I have a friend who has a lot of credit card debt. Whenever he asked me on how to start investing, I will just tell him to clear all his credit card debt first. The reason is simple. Average return of S&P500 is 10% since 10 years ago. However, the credit card interest can be as high as 22-24%! Unless that year is a super bullish year, whatever he earns from the investment, will be eaten by the credit card interest.

The last step then coming to the wealth building. There are many successful businessmen manage to build their wealth through their innovative idea and take the risk. However, I am a normal person who earns a salary and no gut to go for high risk business adventure. Thus, my way to build my wealth is to consistently invest in stock markets and let it grows. At the same time, I also invest in property. I just bought an investment property in Malaysia last year. Now, my wife and I are aiming to upgrade our unit and buy an investment unit in Singapore. My aim is to build a cash generating asset worth of 2 million in 10 years, then with a combination of the rental yield and dividend from the stock market, if I manage to harvest an average of 5% per year, it is equivalent to 100k of passive income annually. This amount is enough for our family to achieve financial freedom. Basically, it means I will be able to retire at the age of 45. Of course, if I manage to strike toto, then I could even retire earlier.

There are many successful CEO or investors who are succeed in making a fortune. In summary, I categorize them into 3 categories:

Mindset

Habit

System

1. They practice "dream-setting."

Dream setting is as important as goal setting. We need to set our dream, then craft the goal to achieve it. For example, my dream now is to achieve financial freedom with my family in 10 years. Then, we will travel around the world and enjoy our life. In order to fulfill my dream, I will need to have a 2 million cash generating assets. Thus, I am now working hard to build my asset through stock market and properties investment to achieve my target.

2. They pursue their own goals.

Everyone has different goals. It is important to identify our own goal, and not to follow our parents or the others’. To me, I also like to divide my goal into multiple smaller goals so they do not look too scary to achieve. Multiple smaller goals could motivate us along the way to achieve our big goal eventually.

3. They have multiple sources of income.

The article mentions that 65% had at least three streams of income that they created prior to making their first million dollars. Salary is one of them. Stock market and property market can be another 2 income streams.

4. They help others succeed.

Helping other success-minded people move forward in achieving their goals and dreams helps ourselves succeed. This is one of the reasons that I like to share my investing idea for free to help whoever need the information to pursue their financial goal. Whenever I preparing material or video, I will need to study in details and look for more researches. At the end, I am also benefited a lot during the process.

5. They never give up.

I think this is the most important criteria. We tend to give up whenever suffered a drawback or obstacle. However, most of the time, the success is just around the corner. For example, I suffered huge loss when I first entered the stock market. Luckily I am persistent enough, identify my mistake, and now I manage to profit consistently through the stock market.

All the successful investors have their own system. For example, Warren buffet is well known as a value investor. He is extremely patient to wait for the right price and shoot his bullet. Of course, he has his own way to do the research to identify a very good company that is undervalue. By using his successful system + the rich people mindset, he becomes one of the best investors in the world.

Another investor that I admire the most is Adam Khoo from Singapore. Not only he is a very successful investor, he also builds a very successful business in the educational industry. He also has his own system to identify a good company and invest in stock. His portfolio also manages to beat the market consistently. I also get to know his story in one of his webinars. In order to succeed, he also works hard and smart to achieve his goals.

Let's be realistic. Investment opportunities is everywhere. For example, look on the SPX chart. If we look on the longer term, it is just going up all the way. Inflation, population growth and the company switching (they always choose the top 500 companies) are the three main factors that will pump the stock higher and higher.

Oh well, if we do not want to look for too long term. There are many successful trading strategy exists for mid-term trading, swing trading, or event scalping. Of course, these techniques require very strong discipline and consistency to follow.

But, the critical hurdle that hinder most people to build wealth or not willing to invest, is whether we are willing to jump out from the comfort zone. Our current salary may be enough to support our family, have surplus to put in bank etc. After working hour or during weekend, it is good to chill or just relax. Therefore, many people are not willing to spend additional time to learn and start to invest.

Once we start to jump out from the comfort zone, we will find that we could reach higher level and our goal is nearer to us.

Hopefully this video can give you some insights on how to build a wealth. What is your way to build your wealth? Please share with us!

Thank you and see you in the next video.