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How To Accumulate Wealth

Updated: Dec 7, 2020

We share 3 key factors in success wealth accumulation to ensure sufficient cashflow for future situations.

There could be many reasons why we would want to accumulate wealth. Buying our first car, going on our dream holidays, buying that perfect home, ensuring a quality tertiary education for our children and making sure we have sufficient money to retire comfortably, are just some of them.

Whatever our reasons for wanting to accumulate wealth, there are three important factors which we need to take note, namely budgeting, saving and compound growth.


Everyone should have a budget. This gives us an idea of what portion of our income is allocated to necessary expenses and what is available for savings and investments.

Once we have a budget, we need to work out where we are overspending and where we can save on our expenses, e.g. we may be overspending on holidays and not making enough provision for our children’s tertiary education or our own life coverage. We need to make a conscious effort to strike a balance between the things we need and the things we desire at that moment in time.


Once we are aware of how much money we have available for wealth accumulation, it is time to make that amount of money work for us. There are many ways to go about doing this and whatever strategy we choose, it is important to understand the power of compound growth.

Compound Growth

Compound growth is growth-on-growth and has been described as the eighth wonder of the world. If you invest $1,000 in the first year and it grows by 10% in that year, an additional $100 will be available in the second year. Growth will now be on the original $1,000 and also on the extra $100. Over a long period of time, this phenomenon exponentially increases the value of our savings and investments.

Using this magic formula of Growth-on-Growth Plus Time, we would be able to accumulate our wealth for our dreams.


Article Written By:

Firdaus Anuar

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