Tips to Grow Wealth | Ways to Increase Your Wealth in Singapore
Budgetingby Priyadarshini 8 February 2022
Managing finances in Singapore is not an easy job. Especially, as the country is a costly place to live in. We give you some handy tips to grow wealth in Singapore.
Tips to Grow Wealth:
Discover How to Invest
Why should you learn how to invest? The basic answer is that it is due to inflation. Whether you like it or not, inflation erodes the purchasing power of your cash, leaving you with little choice but to continue earning more in order to keep up. Investing can help you increase your money so that you can stay ahead of inflation and create more wealth for yourself and your loved ones. You are not required to take on more risk than you are comfortable with. In reality, even a conservative approach can yield good outcomes, particularly over a longer time horizon.
Reduce your Taxes by taking Advantage of the CPF Supplementary Retirement Scheme
The CPF Supplementary Retirement Scheme (SRS) allows you to deposit additional funds into your CPF account freely, up to an annual limit of S$15,300 at the time of writing. While interest on funds in your SRS is only 0.05 percent per year, any sum deposited is subtracted from your tax responsibilities. The difference here might be several hundred dollars per year.
Make the most of your CPF Contributions
Rather than keeping your excess funds in the bank, try topping up your CPF accounts. This is useful since you can earn more interest (well, higher than the banks anyhow) in your Ordinary and Special Accounts. Take aware that top-ups cannot be reversed or withdrawn, so make sure you only do this with money you won’t need until retirement.
Interest in Cryptocurrencies?
Other tips to grow wealth includes taking a close look at the cryptocurrency market. Whatever you think of cryptocurrencies, the truth is that Bitcoin and its peers have been there for 13 years. During that time, the whole cryptocurrency market has expanded to around $2 trillion. It is thus realistic to believe that there is value to be found in bitcoin, despite the massive amounts of noise, misinformation, and frauds that you may have to wade through.
As a result, if you want to increase your wealth, you owe it to yourself to investigate cryptocurrency. Understand and study the fundamentals, and keep up with real-world applications and advances. You could gain fresh information that alters your perspective, opening up new avenues for income development.
Purchase Appropriate Insurance
Let’s avoid the age-old discussion about whether it’s better to invest in life insurance or in stocks, and instead recognize that having enough insurance coverage is critical for good financial health. Consider a life insurance policy to be a bank account that ultimately benefits the next generation while also serving as a fund from which you can draw to cover some of your needs. Going without insurance, on the other hand, is a dangerous endeavour that may plant the seeds of a financial disaster.