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How much should a person invest to be richer?

Grow your wealth

By Chua Yuan HengPublished about a year ago 3 min read
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How much should a person invest to be richer?
Photo by micheile henderson on Unsplash

Money, never grows too much. Everyone loves money, especially if they can get or have more of them. However, if money is not grown, it should be earned first before you have them in your hands as the seeds to grow more of them. It's just like growing some fruit plants in your own garden after you have gotten unto your hands some seeds plucked from the same fruit you wished to grow.

How to grow more money? The mantra is simple, if you have a spare, grow it, otherwise use it. But be careful, make sure you use the spare wisely so that it would brings you a further advantage in life, otherwise hold back and resist.

A delayed gratification could bring you more gratifications in the future, if you learn how to hold back your money seeds. Maybe, you could invest them to grow more money. Investments come in 5 forms. We will discuss them as below:

1. Simple investments

Investments in this form are simple and easy to be worked with. For example, a fixed-deposit investment is one of the simple investments one could use to grow wealth. Besides that, unit trust is also a form of simple investment.

In this form of investments, one just set aside an amount of money and wait for it to either mature or return a profit after a while. This is for people who just doesn't want their money to sit around doing nothing but wants a way for them to grow.

2. Tough investments

This form of investments require extremely clever and quick mind to be worked upon. For example, stock trading, forex trading, and cryptocurrency trading are forms of tough investments.

In this form of investments, one must constantly be vigilant of any movements in the market where they pour their money into. This is for intelligent people only, not for the weak hearted.

3. Passive investments

This kind of investments is superb for passive but bored people. An example of this is to invest in the lotto and wish that someday it will return to you at least some winnings, if not the jackpot.

Putting money into it, though not winning instantly, is also considered an investment, because you maintain this thing forever until you win it someday. Hope that great luck will be on your side some day!

4. Active-passive investments

By holding shares in a company is a form of active-passive investment. For example, some would hold directorships in many corporations, big or small, in order to reap dividends by the end of the day.

But, this requires participation and sometimes a lot of work. You need to direct these companies to their growths if you want more dividends from here. Anticipate sleepless nights and a lot of coffee in the morning!

5. Clever investments

This type of investment is clever in that you invest in things like real estate and simply collect rentals or wait for the property to increase in value over time.

However, this type of investment requires a huge amount of money upfront and also quite some money to maintain it over a long period of time. Besides that, people also set up coffeeshops or shop houses to rent out to others for profit.

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That's it, the 5 forms of investments I could think of. What are your ways to invest your money? All these ways are imaginable and some are easier while some are harder. If you think of better ways of investing money, please comment below. Like, share, and subscribe to me if you find this piece of story rewarding.

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About the Creator

Chua Yuan Heng

IT Support | Melaka | Malaysia

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