The Essence of Wealth Accumulation

Financial consultants and investment product brokers work very hard every day to drill into their clients’ mind the importance of wealth accumulation. However, a disproportionate amount of that drilling and hammering is focused on the types of wealth accumulation products, rather than the strategies.

Last week, a very successful ‘wealth accumulator’, a school teacher from Cheras, shared with me 2 phrases that he has kept closed to his wealth accumulation strategy and here they are:

1) 只有进没有出 – Only In’s, No Out’s

2) 有多没有少 – More, Never Less

These 2 phrases are translated literally from the Chinese language, and it has a zen-like quality to it.

The school teacher has applied this strategy since he started working 30 years ago, and he is still using it today.

In the first phrase, he emphasized that you should be very strict on the direction of your cash. Once you’ve allocated this amount to your wealth accumulation plan, you must never withdraw it, UNLESS, in his very own words, “You are going to use it for a productive purpose”.

Once you get into the discipline of accumulating a tiny portion of your income, you should be able to see your effort growing and your only logical response to this revelation is to increase your accumulation volume and hence directly increases the rate of your accumulation.

In my experience, accumulating your wealth without a good financial blueprint, even with the best financial products, your results will not be as spectacular as compared to having a clear idea of what you really want from your investments. It’s your job to be as descriptive and precise as possible when you are communicating your investment philosophies to your financial consultants to see if their services matches your requirements.

Keeping it simple, I hope you get something out of it. I know I did.

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