Saving money is not enough in a rapidly progressing metropolitan world city like Singapore. Growing money is a financial imperative, which can be done by building sources of passive income, or setting up a retirement fund.
There are plenty of investment routes in Singapore, but choosing the right ones is important. For instance, you can borrow money for setting up a small business from a moneylender or even invest in the Straits Time Index. Here are some ways to grow money in Singapore.
Getting out of debt
When it comes to growing money, carrying debt is like moving in the opposite direction. Before you can begin saving, debt in all forms—credit card bills, overdrafts, and loans—needs to be paid off. The right way to do it is by debt consolidation with help of a licensed moneylender.
Personal loans from banks need a robust credit score, which isn’t a necessity with a moneylender. You get the cash quick, which paves the way for renewed wealth growth.
Investing in basic financial products
For best ROI, you should invest for a long term and choose simple, cheap products. Simple investments are run by artificial programs that track stock market indices. ETFs are a perfect investment route for those who want potentially higher returns and are prepared for variable returns.
Before running to the moneylender, conduct enough research on where it would be the most profitable to invest. With the oil and gas industry in an unfavorable state as it is, it is a good idea to consider blue-chip stocks through REITs or the STI ETF.
Remember that with high returns, comes high risk. However, they protect investors from default company risk, providing better claims than stocks. You can go for funds like the Singapore Savings Bonds, which offer around 2.5% p.a.
One of the most common ways of investing in gold in Singapore is gold ETF. In gold ETFs, you don’t need to own gold to have investment exposure to it.
Renting out your property
Prices of landed property in Singapore in 2016 fell by 4.4%, and the trend is here to stay. Even otherwise, renting out property is a common passive income route in Singapore. If you are currently living in your only owned property, and need a little more money to buy another apartment, get a personal loan from a moneylender.
Investing in annuities
Another traditional wealth-building method, annuities can ensure a fixed passive income. However, for the best results, invest in annuities early on in life. Annuities are the perfect solution for those not very well-versed with investing. However, guard against surrendering the policy to avoid losing your savings.
Paying off mortgage early
Ask any expert on ways for tax-efficient investment options, and the answer you will get is paying off mortgage early. Overpaying by even small margins on a monthly basis can help save significant amounts of money, considerably shortening the tenure of the loan.
Your personal financial advisor may not recommend this option, but may ask you to consider investing in insurance products. Do not take it seriously because they stand to make money from successfully recommending insurance.
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