Feb 24

Things to Know if You Want to Grow Your Wealth in Malaysia

Everyone dreams of being wealthy someday. When you’re wealthy, you don’t have to worry much about the three basic needs in life – shelter, food, and clothes. You also get to fulfil all your wants without having to look at the price tag.

However, there’s more to this than meets the eye. In this article, we’ll discuss the meaning of wealth, the challenges of having considerable wealth, the process of creating wealth, and ways to grow your wealth in Malaysia.

Wealth: Meaning, Challenges & Process

Wealth can be expressed in various ways. From a material sense of view, wealth is the accumulation of valuable economic resources that can be measured in terms of real goods or monetary value.

Meanwhile, from a financial point of view, net worth is the most common expression of wealth. Moreover, the concept of wealth is often applied to scarce economic resources. If you have ownership over scarce goods, your wealth and net worth will likely be higher than anyone else and it will increase Malaysian net worth finance also.

However, that’s not always the case as the definitions and measures of wealth can change over time among different societies. In the olden days, ownership over land and livestock were once a measure of wealth, but in today’s society, money is the most common means of measuring wealth.

Challenges of Having Considerable Wealth

Everyone has financial problems, even the wealthy. Given the ever-changing definitions and measures of wealth, there are various challenges of being wealthy. Bear in mind that these challenges are not exclusive to the wealthy as people with considerable wealth also experience these challenges:

- Fear of losing one’s wealth

- Wanting more wealth

- Availability of goods and access

- Societal expectations

- Giving too much

- Change in values

- Immaturity

- Jealousy and anger

- Leaving a legacy

Process of Wealth Creation

When it comes to creating wealth, there are many ways to do it. You can invest in real estate or the stock market, be an entrepreneur by starting up a business or even marry a rich person. However, the chances of marrying someone rich in Malaysia and inheriting some of their wealth is low, given that birds of a feather flock together.

Instead of just looking at the surface, i.e. the amount of wealth accumulated, you should look beyond the surface of their wealth creation and understand the processes that go into creating their wealth.

There's no easy way to creating wealth as proven by the adage that hard work always pays off. Only after you’ve poured your soul along with hard work, calculated risks, and sacrifices, will you reap the benefits of what you sowed.

Therefore, to succeed in whatever path you choose, it's crucial to understand the amount of effort that goes into making it happen, which in this case, is your wealth. Besides, Rome wasn't built in a day. So, the only obstacle to your success is yourself.

Now that you've learned about the meaning of wealth, the challenges of having considerable wealth, and the process of wealth creation, it's time to look at some of the ways you can grow your wealth in Malaysia.

Ways to Grow Your Wealth

For most people, the ideal way of wealth creation is to study hard, get good grades, and graduate honourably so that they can get a job with great benefits. Today, instead of relying on a single day job, there are many ways for you to create wealth in Malaysia. Here are the five different types of income that can contribute to your wealth progression.

1. Active linear income

This type of income is the most common as it’s derived from the exchange of physical labour and time with a single paymaster. It’s also the simplest means of creating wealth as active linear income requires the least amount of investment to establish. Some examples include freelancers, employees, and civil servants who work for a fixed amount of money per period.

2. Active scalable income

Similar to active linear income, this type of income is derived from the exchange of physical labour and time with a network of paymasters. It involves having a system or team or even both to grow the income exponentially. That said, if you have skills that allow you to progress from active linear income to active scalable income, it’ll help in growing your wealth.

3. Passive income

Compared to the previous two types of income, passive income is derived from your ownership of profitable assets such as fixed deposits, stock dividends, property rentals, and royalties. The income you get from these assets flows into your bank account without involving the exchange of physical labour. However, financial intelligence is required to ensure the creation of stable wealth.

4. Portfolio income

This type of income is derived from the market value appreciation of your assets, known as capital gains. Simply put, portfolio income is earned by investing in assets that are priced below their market valuation. Some examples include buying a property or stock whereby the value appreciates over time. While this type of income is more attractive than the previous three, it can be a risky source of income if you don’t make wise choices.

5. Phantom income

Phantom income is typically an investment gain that has yet to be realised through a cash sale or a distribution. But, it still creates a tax liability for an individual or partners. Referred to as phantom revenue, this type of income isn’t common as it can complicate the process of tax planning. Some examples include leveraging on tax benefits, corporate entities, and debt.

Throughout this global pandemic, we've seen how people are struggling to make ends meet. Although the vaccine has reached our shores, it’s still better to grow your wealth as a way to cushion further impacts from the pandemic.

With Gene App, you will have an investment plan that can multiply your wealth, manage and increase your digital assets.

You can also earn a daily income and convert your earnings to invest in property and jewellery.

Contact us at 011 6939 2180 or email your queries to [email protected]