I believe that building wealth is a worthwhile goal to pursue.
Your wealth built up, at various stages augments a purposeful life that you live.
Many millennials want a wealth machine to augment their existing working income. They save money for the financial security. They do not have a clear direction where they are headed in their lives, but in the mean time, having money built is more prudent then not having any.
If you have built up $100,000, potentially it could distribute $250/mth, $416/mth or $583/mth in wealth cash flow if you need it. This would depend on the rate of return of the financial instruments you put into.
The formula to built wealth is very simple. I explained how most strategy of building wealth eventually distilled to my Wealthy Formula.
It also shows you which of those factors that makes the most impact to your wealth, is within your control as well.
Which Wealth Machine(s) to Choose?
What is less discussed on Investment Moats is how do we go about building our wealth.
In the Wealthy Formula, the most abstract part is to Build Wealth Wisely. Its easier to say out then to do it. To do it means picking the right Wealth Machine for you, that suits your temperament, stage of life, level of effort you can commit.
There is not just one way to build wealth with a single financial instrument, such as stocks. Your wealth machine might be holding stocks in a basket of exchange traded funds (ETF), or your wealth machine might be to practice value investing in a net net manner, or it could be value investing by purchasing quality businesses.
Each method have their nuances, what to watch out for, how to build wealth in a sustainable manner with them (buying a financial instrument is not a wealth machine if your capital keeps destructing).
Which is the less stressful method to build wealth?
In investing, there are 2 balancing parameters people talk about:
- the Risk
- the Reward
The idea is that you take on higher risk hoping that the reward is also greater.
What is seldom mentioned in the equation is the effort. Effort is required to invest, no matter how automated things are. And there are automated, systems based investing.
Many of us yearn for the world of robo investing where things are automated and we collect a fixed cash flow without a lot of recurring effort in management.
In this way investing can be “less stressful” and you can live a more relax and purposeful life.
Is it possible?
My personal opinion is that it can be, but you cannot eliminate stress. If you see the way Kyith manages his money, I don’t think you would want to do it the way he does it. Kyith’s world is eat, sleep, work , prospecting businesses and all these are interwoven with the stress of each component (not being able to sleep is stress by itself!)
Invest with Less Stress Talk
Our next BIGS LIVE event brings together 3 bloggers who is right to tackle this topic.
This topic fits you, if
- you have some experience in investing but would like to know new systems that can have different level of effort, returns and stress level
- you are totally new to wealth building and would like to be introduced to systems that are fundamentally sound with the above permutation
- you have dabbled in investing, and would like to know the nuances of controlling stress in investing (and why these systems helps in this area)
The speakers are Alvin Chow, who is the CEO of Dr Wealth (previously BigFatPurse). In his courses, they do impart various courses on Net Net Investing, Dividend Investing, and frequently shares on the Permanent Portfolio, which he will talk about this time.
We also have Lionel Yeo from Cheerful Egg and Christopher Ng from Growing your Tree Of Prosperity. Lionel’s competency lies in the behavioral aspect of building wealth and passive investing in index ETFs while Christopher is the consummate researcher whose main focus in dividend investing in a quantitative manner.
They are all eloquent and if you been to our events, you would know that one of the selling points is that this is not a lead generating talk and we give frank assessments on the subject, good or bad.
- When: 18 May 2017 (Thu), 7.30pm to 9.30pm
- Where: Maybank Kim Eng Securities, 48 North Canal Road, L03 Event Hall, Singapore 059305
- How much: $29, early bird price (ends on 10 May): $24
The location is not too far from town and you get your pick of Chinatown MRT (North East and Downtown Line) or Clarke Quay (North East Line)
Tickets are selling fast.
- New 6-Month Singapore T-Bill Yield in Early-December 2023 Should be Slightly Higher at 3.85% (for the Singaporean Savers) - November 30, 2023
- Have the World or Emerging Market Healthcare Stocks Outperform the World and EM Index? - November 26, 2023
- Retirement Spending Can Vary from 25% to 100%. Not your usual 2% to 3% a Year. - November 23, 2023