New year, new bank balance. HSBC‘s discovery of Hong Kong youth’s staggering HK$50,600 monthly spending last year might have left you worrying over the city’s wealth disparity, but most importantly, we want to know if that could be our lifestyle too.
Before getting ahead of ourselves, why don’t we pave our way towards the prosperous road of healthy finances by exploring some beginner wealth growing strategies that are popular amongst the population? Yes, that means less time sitting there and staring at numbers but more comfort and ease knowing your bank balance is rising slowly but surely. Cha-ching.
Everybody gotta start somewhere, and your first step might lie in a time deposit decision. If you have cash to put aside for an infinite amount of time, go for a time deposit with a good interest rate (usually higher than that of your savings account). Think of it as snowballing your wealth by simply waiting — yep, the longer you let the money just sit, the more interest you’ll earn.
If you’re just starting out, big players such as HSBC usually offer a steady interest at around 4.5% p.a., depending on how much of your cash flow you’re willing to part with, and for how long. Standard Chartered and DBS are some other big bank options.
Insurance is all about the “what if”: What if you never have to make a claim? What if all those premiums you paid are going down the drain? What if the bank refunds you all that money, plus more? It is more than plausible in reality.
Seek out insurance plans with saving elements, be it as a side benefit or as the main purpose of the policy. Prepare for your future while… well, preparing for your future, it’s a win-win.
Most insurance policies aimed at saving have a shorter policy period of 3 to 5 years, during which you’re entitled to death benefits and more. For instance, Blue has some competitive return rates for the number of years you’ll commit to, up to 3.5% p.a..
We can’t guarantee your next investment venture will be sure-win, so it certainly makes for a sound precaution to take the conservative route. Check your bank’s Risk Profile Questionnaire to assess your risk tolerance in times of adversity, and protect yourself proactively by going as low-risk as possible.
Sneakers, wines, watches and records — whatever your prized collection consists of, you can agree it’s an expensive hobby. Turn this around and grow your wealth by signing up for online marketplaces for trading. Wait for the right time and strike, and you’ll be in for a pleasant surprise.
We ain’t the first to think of making money off the things you love. If your area of interest falls into the street culture category, you already know StockX and GOAT. For the finer things in life, auction houses like Sotheby’s and Christie’s offer to sell your rare finds.
Disclaimer: This piece is a lifestyle article and does not constitute professional financial advice or endorsements of any sort. Please consult a professional for investment matters.
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