Invest Your Surplus Wisely

In a previous article I discussed the first of the three laws to successful wealth creation, which was to ‘spend less than you earn’. The second rule to creating wealth is to ‘invest your money wisely’. All too often people do what is simple or easy rather than what is wise when it comes to investing. A wise investment, however, must have two components – it must give you capital growth (your assets appreciate in value) and it must give you income.

If your investments or financial assets, as I like to refer to them, do not have both of these components, then someone else is benefiting from the component you are not getting. For example, if you invest in a bank term deposit, you will…