What’s keeping you from becoming rich?

April 3, 2020

You may think that rich people were born into money. However, many rich people have come up from middle class beginnings and have simply put in place good habits to build wealth. 

It turns out there could be a few bad habits that are keeping you from joining the likes of Buffett and Gates in the billionaires club.

Paying high fees in unit trusts and mutual funds

Cutting out high fees is the fastest, easiest and most certain way to be richer. 

For example, if you select Crea8’s tiered fee plan and invest $ 100,001 in some stocks that make 10% annually over the next 30 years, you would be over $ 600,000 richer in 30 years’ time. 

Not sticking to a budget

Most people don’t plan and budget their money. When that happens, they can spend unnecessarily on things they don’t need. In extreme cases, their outflows exceed their inflows.

Set up a budget that includes setting aside 20% of your monthly income for investments

Wasting money on things you don’t need

A lot of people are tempted into buying the latest gadgets and branded items as soon as they come out. This could mean a new smartphone, smart watch or handbag on an annual basis which they don’t need.

Consider how much money you could have in 10 or 40 years if this unnecessary expenditure was cut out and invested instead.

A lot of wealthy people don’t waste their money on things that they don’t need. Warren Buffett for example, purchased his house in 1958 for only $31,500 and still lives there to this day.

Not investing in yourself

Education is well regarded in the workplace and can help improve your chances of landing a senior role in your professions with top remuneration. 

To get there, consider studying for an overseas MBA or professional qualification on the side. This will help you set yourself aside from the crowd and boost your chances of landing that top job.

Buying bad investments

One of the most important steps to becoming rich is to invest wisely. Don’t get caught up in ‘get rich quick’ schemes and investments that you don’t understand.

Instead, invest in stocks that are likely to have above average earnings growth but is temporarily mispriced. This is the whole philosophy underlying Crea8’s Factor based thematic investing. For example, some stocks might be undervalued and contrary to what most people think, they are good stocks and present good investment opportunities. So, think of the megatrends of the future and invest in companies that stand to benefit from these trends.

Not starting your own business

Many of us have many business ideas. But there are many reasons why we do not start our own businesses – a lack of capital is one of them. However, Crea8 offers Goal based investing to help you accumulate initial seed capital to start our businesses.

How can Crea8 help you?

Crea8 offers low-fees but high-quality investment advice

We structure our investment portfolios along mega trends and theme. This way, you can be exposed to stocks that can earn above normal earnings growth and outperform over the long term. 

Under different themes, Crea8 offers Goal and Factor based investing. 

Goal based investing

Set up a regular savings plan

Sticking to a budget and cutting out unnecessary expenditure is all good. But you also need to invest the cash that has been saved. 

Because everybody has different spending needs, Crea8 has come up with a bespoke investment plan to cater for your needs.

We help you realise your dreams

You may be put off by saving towards your seed capital to start your business or the cost of an overseas education that could bump you up several pay grades. Instead of putting it aside, Crea8 can help you work towards it. 

Our Goal based investing service lets you set up a personalised goal such as paying for an overseas education and provide you with an investment plan to work towards that.

Investment plans made just for your needs

We ask you a series of questions to determine your personal circumstance and risk characteristics. Then we provide you with a personalised diversified investment plan for you to follow to meet your retirement goals.

You should also set up a monthly deposit to ensure you instil financial discipline and take advantage of the power of compounding.

Your plan adapts to the market conditions and your personal circumstances

Whether it is market movements or changes in your lifestyle, your plan will adapt and Crea8 will advise you accordingly.

Regular rebalancing ensures you are on target

Your plan is rebalanced regularly automatically, or we will send you a reminder to do so. This way, you can sit back and relax knowing that your investments are on target to meet your retirement goal.

Factor based investing

Selecting the right investments can be challenging. Crea8’s Factor based investing service gives you access to professionally built strategies as well as the tools to make investing easier.

Rely on professionals to build your investments

You can rely on Crea8’s professionally built pre-optimised strategies to invest in. 

Get access to strategies built around megatrends

Whether it is ‘Ageing Society’, ‘AI and Blockchain’ or ‘Smart Factories’ we have professionally built strategies to let you easily invest in companies that stand to benefit from these mega trends. 

Use professional tools to choose the best investment style

Under Advisory, we offer ‘Balanced’, ‘Value’, ‘Dividend’ and ‘Growth’ tilts to the strategies. So, you can easily switch between factor tilts. You can also create your own combination using our Pro version. Our algorithm will ensure that the recommended portfolio is optimal. 

Filter using fundamental and alternative data

Crea8 Analytics lets you easily identify and filter out stocks based on fundamental data or alternative data such as analysts’ forecasts. So, you need not spend time reading multiple reports or track various sources to capture the sentiment of the stock.

Crea8 can help put you on the right path to building wealth

Crea8’s Advice

Building wealth and becoming rich is not beyond the reach of everybody. It’s a matter of putting in place and nurturing the right habits to get there.  

Crea8 can provide you with the right tools and bespoke plan to put in place good saving and investing habits and set you on your way to building the wealth that you want.

Tips for your journey

If you are new to investing and are not sure how to start, check out our article titled ‘8 steps to successful investing’ for a few pointers.

If you want to learn more

If you want to know more about some of the mega trends that we let your invest in, check out our thematic ideas page.

For further insight into our investment methodology including our Goal based investing methodology and Factor based investing methodology, check out our white papers.
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