6 low-risk ways to increase the value of your financial assets

Debt management is the key to effective and efficient wealth management. Promptly paying off your debt can go a long way towards substantially increasing the value of your assets. The ideal plan is to first pay off those mortgages which command a very high rate of interest.
The equated monthly instalment (EMI) on the loan thereby saved can be routed towards your investments which can, in turn, build wealth and create a corpus for your financial objectives. However, if you must avail yourself of a loan, make sure you can afford the EMI. So use calculators available online to ascertain the likely EMI and take the loan only if you can comfortably pay it off.

While most of us start our investing journey with a lot of enthusiasm, there are times when that spirit starts to flag. On the investment journey, one must remain self-motivated, and this can be achieved by monitoring and reviewing your investments at regular intervals. Watching your money grow will encourage you to stay on track and remain committed to your investment plan.

From time to time, there may be a need for assets to be strategically realigned to ensure that it continues to match your risk profile. You may also occasionally choose to realign your portfolio to counter market turbulence or other such factors.
This intermediate re-alignment to optimise returns or minimise risk is called tactical realignment and is capable of increasing your assets substantially.

Track your expenses and budget your spending – this way you will be able to identify any unnecessary expenses.
Use your discretion to identify and categorically eliminate impulsive and needless spends. This will increase your ability to save more and therefore, invest more. Take the initiative to look for small savings which may seem insignificant at first, however, in the long run, it is these small drops that form the ocean of wealth.

Consistency and discipline are two important tenets that help build wealth. At regular intervals, increase your investments to build your wealth.
As your income increases, your investment commitment should also correspondingly increase. This is the way to build meaningful wealth which can help achieve your financial goals.

Diversification is the most common and inexpensive way to optimise your returns and minimise your risk. It is said that diversification is the only free lunch in the investment world. Adding negatively correlated assets to the portfolio can help you protect the downside of your portfolio.