How to Accumulate Wealth

This is not a guide of a thousand ways to to earn a lot overnight, but a modest one on how you can accumulate and increase your wealth over a reasonable period of time.

1. Get Rid of Your Huge Liabilities

Do you have anything in your possession soaks up a bulk of your savings, but offer no glimpse of return in the horizon? If you have anything of this nature (like a car) get rid of them fast! Huge ticket items that require thousands of dollars a month to service should be thrown away. And find alternatives to your lives without it.

In my case, I sold my car so that I can accumulate at least $12,000 of savings every year. My alternative? Public transport to wherever I go now.

2. Resist the Temptation to Buy

Do you have any big ticket items that you so would love to own? If you do, put it off for a while. Do something else to distract yourself from the temptation. The chances are, if you put it off long enough, you either lose the temptation to buy it, or the price of the item falls.

I'm putting off my decision to purchase a new LCD TV for my room. It's not a necessity, so why take the plunge now?

3. Settle Your Debts

Do you have any debts under your name that you can afford to settle immediately, so that you can save on the interest? Credit card debts, hire-purchase debts, etc. Settle them now!

It's important to go debt-free so that you don't owe anyone any money. It's not only a matter of personal pride, it's a matter of unnecessary cost.

4. Set Aside A Fixed Amount Every Month

I cannot further stress the importance of this. You must be disciplined in setting aside as large an amount of your total income (but comfortable enough for you to survive) into your savings account, preferably one that does not have an ATM card that you can draw out from.

5. Take Up Sidelines

Can you sell your free time or expertise to others who need them, perhaps doing consulting, providing home tuition, or can you set up a website that earns money from advertising? If you can, without breaking the employment contract with your employer, and without breaking the law, go ahead and work for your money. This will give you the extra income that you can enjoy life with, and the extra savings you can set aside into your bank.

Until you have a million dollars in your account, this is likely to earn more than the interest in the banks.




6. Curb Your Spendings

No harm going for an occasional spa, or treating you and your wife a night in a far away resort. After all, life is here for you to enjoy. But the usual try-not-to-spend-too-much-on unnecessary-things still apply, where you can help it. If you have anything left over, put it into your savings on top of those that you have set aside monthl.

7. Invest Your Savings

Set up a portfolio of stocks, or mutual funds if you wish, according to a fixed asset allocation that you have planned. And rebalance your portfolio every year. Do not hope for stellar gains in the short term, but a steady 6%-8% annually. If you aren't comfortable with investing all your savings, set aside, say 50% of it for investment.

But beware, don't invest in unknown schemes that ask for your money and promise the sky.

8. Move Your Savings Around

Banks are not there to think for you, they are there to run a business. In other words, they exist to earn your money. Loyalty to a bank today is unrewarding. Instead, keep your eyes peeled for the latest promotions in Fixed Deposits, or Savings Rates, and rush for the best.

9. Quit Gambling

If you like to bet heavily at the races, or to sit around the table dishing out several hundreds of dollars at a time, it's time you stop. Remember, casinos, races, pools are all set up to run a business. Yes, they are set up to earn money from you. The games all designed with one goal in mind, to make most of you lose. What about the winner, you ask? That's just their marketing expense.

I'm not against these games as leisure, as long as you play within your means. My limit is really just several small dollars in a year, for a small hope to strike a million-dollar lottery.

10. Exercise, Work Out, Stay Healthy!

Take your children for a stroll. Go for a nice morning jog, a swim, anything! Just get that bottoms off the couch in front of the TV. Sleep well, eat right, yada, yada. Think for your body, so that you can enjoy your golder years in the pink of health.



It's not extremely difficult to be able to accumulate wealth. With the exception of investing, almost everything else is risk-free. Have a great journey on the road to riches!


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