What Can You Do To Increase Your Net Worth In 2022?
As we start the Year of the Tiger, fortune and prosperity abound as festive season promotions are back.
Festive seasons are always the best time to stumble upon attractive deposit, saving and financing rates offered in various bank promotions. Local banks offer everything from gold to cash prizes are up for grabs.
Maybank Privilege is not just giving out prizes but going further to provide you with the knowledge and skills to grow your wealth through programmes like the Financial Planning Series and the Financial Empowerment Series.
If you are looking for ways to make your money work harder to increase your wealth, this is the best time to get started.
4 simple ways to manage your net worth
1. Check your liabilities
Personal wealth does not only take your assets into account, but also your liabilities. The greater the liabilities, the worse off your portfolio will be. As such, you should not forget to clear debts when you can. This helps you be in a better position to take advantage of opportunities that may arise in the future.
Focus on paying off your debts with the highest interest rates or consider refinancing high interest loans. For example, you can refinance high interest credit card debts with a 0% balance transfer or consolidate several debts into one loan at a lower interest rate.
Tune in to the Maybank Privilege Financial Empowerment Series to get more information about handling your liabilities in a way that helps you grow your wealth, and increase your net worth.
2. Review your assets
While economies around the world are still reopening, things are still massively uncertain. Inflation in the US is at a 40-year high; which could have a knock-on effect on many of its trading partners.
As such, 2022 is a good time to do a full review of your assets. Besides investment assets, don’t forget to review other assets you may already own such as your savings, deposits, insurance and even your property. If you have rental property or home mortgages, reviewing them helps you figure out how much home equity you actually own which can boost your net worth as well.
If you’re the type that has a portfolio but doesn’t know how to rebalance it, your best bet is to talk to a financial advisor who can guide you through the process of assessing your risk profile and what you should do to preserve your wealth.
In the meantime, you can also catch the Maybank Financial Planning Series videos to further educate yourself on financial matters.
3. Reign in expenses
Lifestyle creep is something that tends to happen with increased income, most of the time without you realising it. As your income rises, so too do the limits you put on your own spending. It could be as small as eating out one extra day a week, or even taking an extra helping of chicken at the nasi kandar stall.
These small things stack up over time, and you don’t realise it as you normalise paying the bigger bill because “you can afford it now”. Even if you have enough money to comfortably see you through your monthly expenses, tracking your expenses and keeping to a budget can add up to a lot of money throughout the year which you can use to grow your net worth even more.
So keep an eye on how much you’re actually spending each month. It might be a lot higher than you thought you would be.
4. Explore new income sources
If you aren’t able to reduce expenditure, then perhaps it’s time to explore more income sources.
The easiest is to expand your passive income sources and diversify your portfolio. This could be digging into new speculative investments like cryptocurrency, or it could be more traditional sources like gold or commodities. You could even look into investing in startups for more long term plans.
Exploring new income streams is daunting. Having a financial advisor to help navigate the process not only reduces the amount of work you have to do, but also helps you avoid common pitfalls that less experienced investors might make.
Basically, it’s knowing where to store your money where it can grow at a rate that beats inflation. Income investing is a great way to increase your net worth and Maybank Privilege can help you get started.
Grow your net worth with Maybank Privilege
In this low interest rate environment, we must be smart investors to manage our wealth, assets and liabilities by tapping into ongoing promotions to capture better rates. For example, these could be to get better returns on fixed deposits, or to get better deals on loans.
Do not be afraid to tap on the expertise of others for your own personal gain. Especially if that expertise comes from a trusted banking institution that offers services to help people just like you.
It also offers a wide range of benefits such as:
- Multi-tier interest/indicative profit with Premier 1/Premier Mudharabah Account-i.
- Priority services at all Maybank branches when you present your Maybank Privilege e-Identifier via the M2U mobile app.
- Exclusive rates and complimentary gifts from when you purchase any Maybank financial product on your birthday month.
- Get quarterly market insights via email.
- Receive exclusive invitations to curated lifestyle events such as the Privilege Wealth Talk.
- Earn more rewards (e.g. TreatsPoints) when you sign up for selected products and services.
Sign up as a Maybank Privilege customer through the MAE App today and stand to win RM163,790 worth of prizes. Build your portfolio with Maybank financial products to gain more entries to increase your chances of winning a Mazda 3 with RM140,000!
*Campaign ends 31 March 2022.