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Welcome to Our Next Chapter!
Voreakchan Meliza Lim
Age 16,
Toronto, Ontario
Entry: Essay
Senior Level: High School
I'm a current junior student with a passion for finance & the arts. Over the course of my high school years, I have become accustomed to incorporating my hobbies and academics. I constantly research market trends, plan out investment strategies to deepen my understanding, and connect with new people through various art forms such as performing, literary, visual, and beyond. When I'm not glued to the New York Times or Yahoo Finance, you can find me in an art exhibition or on the golf course where I'm eternally refining my backswing.
I've always wanted to embrace the technical side of finance and the expressive side of art. With a combination of both, it can break down the barriers of the contrasting sides and merge into a unified synergy.
Being involved in the creative process of my piece was probably one of the best experience throughout the overall process. Presumably, most adults understand the steps of accumulating wealth; however, it may not be fool proof throughout the next few decades. This is what keeps the process most entertaining and fresh. It allows for us to adapt to different techniques and strategies that best suit the current situation with the most benefits for each individual. So, in my essay, I was able to further delve into the topic of accumulating wealth in this ever changing world.
Artist Statement:
In the beginning stages of the essay, inspiration delves from the financial struggles of asset accumulation strategies. In our lives, finances are a fundamental aspect which is essential for every studies and career.
The majority tends to struggle with accumulating wealth over the course of the years. I believe that with this essay, I am able to further demonstrate the importance and vitality of financial literacy to the general public. Everyone deserves to learn more about their financial status and issues. Self awareness is the utmost importance in one’s strategic financial plans as it deeply affects them throughout each and every stage of their lives. A combination of strategies that may be used in our society today, and possibly in the future is undoubtedly important for us to adapt into this ever changing world. Of course, each strategy may not correlate directly to each individual and their circumstances, nevertheless, it still remains as an invaluable knowledge gained for any future financial aid.
In retrospect, every piece of knowledge may act as a guide to affect someone, somewhere, somehow at some point.
EmpowerED 2025 Contest Entry
Essay: Asset Accumulation Strategies
Growing up, I had always found finance interesting. Taking this into account, my parents tend to demonstrate their knowledge and understanding about the matter of accumulating wealth. For instance, they once said, “You shouldn’t just save up money in your savings account but rather invest it into other markets, for instance, the stock market.” It was not just about money and numbers, but rather a vast amount of strategies and concepts that revolved around the world. The world is an interconnected place, so if one market were to fluctuate, the other would likely do too. Throughout history, I see that there are a plethora of ways and opportunities in which I could invest in my future and accumulate wealth. In my recent financial literacy class with Ms. Gibson, I was able to learn more regarding the common strategies of asset accumulation strategies and how I should take them into account and shape my future for the better. Among the strategies, three main topics in particular stood out and resonated with me the most: the Three Phases of Wealth, Dollar Cost Averaging, and Understanding Financial Markets.
The Three Phases of Wealth included accumulation, distribution, and estate transfer. Accumulation is the process in which I repeatedly save and invest by taking advantage of other factors such as compounding and growth. Distribution is the next step where I would begin to use the accumulated wealth, most likely using it during retirement. Lastly, estate transfer ensures that the property remaining is passed efficiently off to the selected heir(s). When I was younger, I saw my parents working in various jobs to accumulate wealth before they decided to reinvest this into an asset such as land. After that, they decided to pass on some of the property to their loved ones. This taught me that I can plan smartly regarding each situation that is most prevalent in today’s society to preserve the hard work of the people and matters we deem most important in our lives.
Dollar Cost Averaging (DCA), is a great investment strategy that is quite simple yet powerful. Instead of trying to time the market, often resulting in losses, DCA involves consistently investing in a fixed amount set over time, periodically. This approach lowers the emotional risk of investing when you may deem best, and rather statistically, which cuts out the emotional burden you would have to endure and is more stable. In today’s world, where the financial market fluctuates rapidly, DCA is undoubtedly beneficial, especially for me, as I am quite new to investing and want a stress free investment journey. Additionally, with the amount of school work and other projects, I can now invest less time tracking the market.
Lastly, understanding the various types of Financial Markets is extremely important, as it allows for different perspectives of economic news and investment opportunities. The three parts of the financial markets include the equity market (the stock market), mutual funds, and ETF (Exchange Traded Fund). These all serve different purposes in the economy's distinct roles. Although I tend to invest in higher-risk markets, due to their generally higher returns, I am able to understand that this may also lead to higher stakes; hence, different market options may be more suitable regarding my wants or needs. For instance, if the equity market is too risky even with higher returns, a mutual fund or ETF might be a safer option with a constant rate of return. Recognizing each benefit and flaw of the financial markets allows me to make informed decisions and create a more diverse portfolio.
In conclusion, these lessons all tie back to the extensive foundation covered in the financial literacy class, whether it is building an emergency fund, managing debt, or investing. These concepts allowed me to further understand and have a different perspective on each strategy. Financial literacy is not just about numbers; it is about having a solid strategy and managing wealth with informed decisions for the future. Over time, strategies will change; hence, I will have to adapt to this ever-changing society to pursue investments in my best interests. Acknowledging this, I am more confident in my journey in financial literacy