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As anyone who’s managed to build up a significant nest egg would know, you should always be on the lookout for more ways to grow your wealth.
While spending prudently is of course a smart financial move, most of us prefer not to cut our spending to the bone and live a life of extreme frugality (if we have the wealth, we should at least enjoy some of it).
Instead of paring down, why not level up even more? The way to go would be to find ways to increase our income.
Here are 4 tips for growing your wealth so you can enjoy life while boosting your finances at the same time.
1. Re-strategise and maximise your finances
One golden rule for maximising your finances is to make sure that all of your money is working for you. You might already be growing some cash through investments or wealth products, but what about your cash savings?
For this, storing your cash savings in an account that offers a decent interest rate is essential. A high interest account works hand-in-hand with your wealth products (kinda like Roquefort and fig compote) to maximise your money.
In addition, this account should afford you the flexibility to access your funds at any time. With maximum liquidity, you can re-strategise and reallocate your assets whenever you need to, staying nimble enough to respond to changing circumstances or to seize new monetary opportunities.
One example of such an account is the RHB Premier Plus Current Account.
The RHB Premier Plus Current Account is a high interest current account for premier banking customers that offers attractive interest rates on cash deposits over $200,000.
Here’s a quick look at the account’s prevailing interest rates:
The RHB Premier Plus Current Account offers great flexibility with no lock-in period, no conditions to fulfill, no monthly minimum average and no fall below fees. Your funds can be accessed anytime via internet banking, and you are free to deposit or withdraw cash whenever you wish.
Signing up for the RHB Premier Plus Current Account can be quickly done online using MyInfo — your time is money! Once your account has been approved, you can simply transfer funds via mobile banking from the comfort of your own home.
Bonus interest promotion
Bonus interest is given out based on the aggregation of your account balances at the end of each calendar day for the particular month, divided by the number of days in that month.
Here’s an illustration of how the additional 1% p.a. bonus interest on your incremental account deposit balance (ADB) is calculated):
|Date (2021)||End Day Balance||ADB for the Month||Incremental ADB against previous month||Interest Earned (S$)|
|01 Sept – 30 Sept||S$0||S$0||N/A||S$0|
|01 Oct – 31 Oct||S$200,000||S$200,000||S$200,000||
|Total interest earned for month of October||S$250|
|01 Nov – 10 Nov||S$1,000,000||S$1,333,333||S$1,133,333||Prevailing interest: (S$1mil x 0.468%) / 365 days x 10days = S$128|
|11 Nov – 30 Nov||S$1,500,000||
|Total interest earned for month of November||S$1,445|
|01 Dec – 31 Dec||S$1,000,000||S$1,000,000||No incremental||Prevailing interest: S$1mil x 0.468% / 365 days x 31 days = S$397|
|Total interest earned for month of December||S$397|
*Figures are rounded to nearest dollar for illustration purpose
2. Look after yourself before others
Most people tend to prioritise paying bills and paying off debt when they receive their salary or monthly income, worrying about their investments, savings and emergency fund only after this has been done.
But doing things the other way around can actually be better for your finances. So, try setting aside money for your own investments, savings and so on at the beginning of the month before paying your bills and repaying debt. If you have money left over at the end of the month, it can be further channelled into one of the aforementioned areas.
The easiest way to do this is to automate your savings and investments. That way, you do not have to rely on discipline to do what you have to do, nor do you risk forgetting or cutting yourself some slack in a moment of “weakness” (new launch Hermes bag, anyone?).
By prioritising your savings, investments and so on, you are making the principle “you cannot spend what you don’t have” work for you to ensure that you don’t overspend. You’ll find that you are managing your outgoing money and retaining your incoming money much more easily.
3. Invest to grow your wealth
If you are not already investing, it’s time to start. Don’t let the bulk of your money sit in the bank, as bank account interest rates are always much lower than what you can achieve through investing. Do note, however, that no investment is completely risk-free, so you’ll have to come up with a plan that’s appropriate for your risk appetite.
As mentioned earlier, wealth products that enable you to invest your money are best paired with a trusty bank account to park your cash savings in.
While you should always be attuned to new investment opportunities that arise, an account offering a good interest rate will lower the opportunity cost of leaving your money in the bank until you find a better way to invest it.
RHB Premier offers access to a wide range of award-winning unit trust funds, structured investments, fixed income instruments, share trading and life protection plans, all of which can help you grow your wealth.
When paired with a bank account like the RHB Premier Plus Current Account, which as mentioned earlier has a 1% bonus interest promotion, your money will be working hard for you whether it is being invested or saved in cash.
It’s also important to invest in yourself. Knowledge is power, so staying up to date with what is happening on the market and being swift to sniff out investment opportunities can pay great dividends.
For instance, free webinars or joining finance-related Telegram groups that share articles on investment trends such as crypto can help you become an early adopter of new ways to invest.
Alternatively, when you open a RHB account, you can approach your Relationship Manager for personalised assistance on how to grow your wealth and succeed financially.
RHB also provides a monthly market outlook report update for its wealth customers. Together with your dedicated Relationship Manager, you’ll be able to come up with a plan that’s optimised for success on your wealth-building journey.
4. Last but not least, remember to treat yourself
It might sound counter-intuitive, but if you’re too austere and don’t give yourself room for some fun and enjoyment, you might lose the motivation to continue saving and growing your wealth.
So, feel free to treat yourself to something nice once in a while! Just make sure you set a budget for it and make it a planned expense, instead of giving yourself free rein to spend regardless of cost. For instance, you might choose to spend a percentage of your investment dividends or part of the bonus interest you have earned on your savings.
Of course, there is no need to go overboard and splurge. Moderation is key! You might decide to treat yourself to, say, a $200 omakase meal when you’ve amassed at least $2,000 in bonus interest or dividends.
The trick is to keep your motivation and enjoyment levels high so you’re psyched to continue growing your wealth and saving money.
Get higher returns on your wealth and enjoy life to the fullest — find out more about the RHB Premier Plus Current Account.
*Full Terms and Conditions apply for the RHB PREMIER PLUS CURRENT ACCOUNT CAMPAIGN – Q4 2021. Visit https://rhbgroup.com.sg/rhb/personal/premier-plus for details.
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law.