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Everyone wishes to lead a rich and famous lifestyle. For Mr. Wong, a complete lifestyle means having plenty of extra cash to go for shopping-sprees and frequent overseas traveling, owning a country home in one of the private residential areas that only few can afford, several luxury cars in the driveway and sending his children to an acknowledged private school in the country.

It is quite common for a young exective like Mr. Wong to have such a burning desire in life. Different individuals tend to have different needs and objectives in their lives and your objective may not be the same as Mr. Wong.

In order for people like Mr. Wong to materialize his financial dreams, he will have to learn on how to effectively manage his financial matters, to be more specific, maximize every hard-earned dollar that he makes.




Although managing ones wealth is proving to be an increasingly strenuous task, you do not have to be a genius to create a winning investment plan - making more returns with minimized risks.

Before you get into action with your financial war game, work out your investment objective first. It is sad but true to note that there are investors who do not even know what their investment objectives are.

There are few basic factors that you should consider when determining your financial objective - duration (short-term or long-term), risks/rewards relationship, liquidity, tax, and time allocation.




Some people prefer to make fast gains while there are those who are patient enough to wait for the money to grow over a longer period. In setting your objective, you have to ask yourself whether you will follow short-term or long-term approach in managing your money evaluating your investments.

For example, if you have decided at you are short-term oriented, you are unlikely to invest in bonds or fixed deposits which deliver returns at a snails pace. Your investment menu will most likely include stocks or currencies.

In the casino-driven local stockmarket environment, short-term traders normally try to buy at the bottom and sell at the peak probably in a few days based on pure rumours or technical indicators. These people tend to have short-term investment objectives and can be easily found trading in the second board.

Beware though that frequent trading for a "quick kill" always carries a higher degree of risk (refer to second factor) in addition, a greater amount of commission is involved. This is in contrast with long-term investors who buy and hold for a long time for security which is basically cost-effective.

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