How I Grow My Wealth Through Investing

Money IS hard to earn (I believe you already know that)… thus, it is important that we are frugal and for whatever money we save, we put them into good use – aka, using them to grow more money.

A lot of my friends ask why do I have so much money to invest… well, the key is I don’t. The reason why I do have surplus money for investment is because I set them aside and awaits for opportunity.

We see so many people getting windfalls in their investment… and sometimes, we wonder if they are lucky. Then again, if you’ve read “The last lecture” by Randy Pausch.. he gave a very significant quote that:

“Luck is when Preparation Meets Opportunity”

So.. I do like to keep myself prepare for an opportunity.

For me, I do my best to stay invested in the stock market and at the same time, stack aside near to 50% of my “investing” capital for unexpected opportunities, ie, financial crisis.

It is funny because, we all know that during the crisis, buying opportunities are everywhere… yes it is also during crisis that many people do not have the money to go in and stock up their portfolio at a bargain. And in the case that you do not know what to buy during crisis, I believe that buying the index (STI), is decent enough for you to get some windfall after the market recovers.

so, in my case, I would set aside 50% of my cash as “bullets”, and at the same time, allocate the other 50% of my cash to accumulating shares during normal times.

Now of course, it is important to note that it is not necessary to spend the “allocated” 50% during normal times. In other words, I would only use them when I find a good company at a bargain. If that didn’t happen, I would try to conserve the money as much as possible.

Money is hard to earn… and it is only wise if we could use our spare cash to grow our base.