The Relationship between wealth and well-being
5 min

The relationship between wealth and well-being

Money can’t buy you happiness. But being financially secure removes a huge potential burden and puts you in control of your future. That sense of well-being is priceless. So, what investment strategy can help you reach this secure state? Let’s look at some easy ways to start investing for your future.

What you’ll discover?

  • How investing can help your well-being
  • Tips to start investing
  • Investment considerations

Why invest?

When we think of well-being, we usually think about our physical and mental health. We invest in diets, gym passes, and apps. But we forget to invest in our financial health. Why does this matter?

When people take a step to invest, they create a greater sense of positive well-being.

In-fact, we found that when people invest1, they are:

Why invest?

Invest in your well-being and your financial security

Think about your latest workout program. Did you have short and long-term goals? Maybe your long-term goal was to lose 5kgs, and your short-term goal was to go to the gym three times a week.

Do you have short and long-term financial goals?
You’re not alone if you don’t. Globally, 43% of people are too worried about their current financial situation to even think about the future.

Investing in your financial health seems like a lot of work, but there are investment options to save you time and money. For example, ETFs are relatively low cost, generally more tax efficient and low maintenance, which can help you achieve your financial goals.

When’s the right time to invest?

There’s no right or wrong time to invest, but three common reasons people start to consider investing are:

  • Planning for retirement
  • Life events, like school fees or planning to buy a property
  • Lifestyle funds, these tend to be focused on short-term goals, for example a dream holiday

Whatever your goal is, you should map it against your short and long-term financial goals with a financial advisor.

You don’t need to spend lots to invest…


54% of non-investors say they don’t have enough money to start investing.

But you don’t need a lot of money to invest. Your investment choice should reflect your goals and your current financial situation. You can make a little go a long way. Start small. Make your money work for you. Investing small amounts of money can potentially lead to a greater return than just letting it sit as idle cash in a savings account.

Find a good teacher


76% of investors that use a financial advisor report having a positive sense of well-being.

You’re not expected to know everything. Just like you’d work with a personal trainer to understand how your body moves, meet with a financial planner to work on your financial health. Together map out your financial goals, discuss and choose the best investment options to achieve them.

Balance the short-term and long-term


41% of non-investors say they would feel better about their finances if they could better balance their needs today with their needs in the future.

Regardless if you’re looking to invest on your own or work with a financial advisor, your immediate goal is likely to be to save and grow money. The key to smart investing is predicting how your investment needs will change during different life stages. Smaller, flexible investments can help you reach short-term goals, like paying off debts, while a growth portfolio can help you save for long-term goals like retirement.

Don’t wait too long

If you fall into the 69% of non-investors who think your future would be better if you start investing now, don’t wait any longer. Making a few small, smart investments can have a major impact over time.

Take Apple’s IPO in 1980, a USD$1000 (just under HKD$8,000) investment on December 12 that year now be worth around USD$430,000 (over HKD$3,374,000), according to calculations by CNBC2. It’s never too late to start.

Get started…

If you’re ready to take control of your wealth and well-being, consider these investment options.

  1. Putting money in a bank
  2. Investing in stocks
  3. Buying managed funds
  4. Buying an ETF

The takeaway

  1. Financial health impacts your well-being
  2. Map out short and long-term financial goals
  3. There’s no time like the present – don’t wait too long to invest

Sources

  1. All data from BlackRock, Investor Pulse Survey, May 2019
  2. CNBC, 2 Aug 2018, https://www.cnbc.com/2018/08/02/if-you-invested-1000-dollars-in-apple-10-years-ago-youd-have-this-now.html
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