Do you want to be rich and successful? Well, each one of us wants to become rich like the Ambanis and flaunt our money. Though no celebrity pass can quickly make you rich some effective ways can help you set the course for wealth and success. Here are some of the secret ways rich people follow to make money:
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The earlier you start the richer you become. The reason is when you are young you can take a risk and you will have time by your side. The sooner you save money the more you can invest. The more you invest the better your money amplifies.
For example, if you start from a young age say about 23 and you save about 10,000 per month then you will have a significant amount of money by the time you retire. If you get average returns of 6% on your investment then you will be rich by the time you reach your mid-age.
See Also: How Rich People Build Assets?
But if you start investing at 30 or 35, then you will be able to save less money. You can’t go for very long term investments and you will have lesser time to invest in additional investments like properties or real estate.
If you want to become rich then the plan should be pretty simple. Go out and get a job and start earning. Along with a primary source set up a secondary source of income like renting a property or a side hustle. If you are a student then make use of your extra time and do some freelance work.
Sitting idle and daydreaming about getting rich won’t get you anywhere. The only way you can get rich is by chasing your money. Take good salary hikes and make comfortable earning from your side businesses and save money every month and invest it. Once you establish this routine nothing can prevent you from becoming rich.
There is no way you can fulfill your money goals if you don’t work hard to achieve it.
See Also: Here's How SIP Can Make You Rich?
If you aim to grow your wealthy then you have to work towards it. Firstly, you need to save money and then you should invest it to make more money. Remember, unnecessary splurging will not help you to become rich. Though living miserly is also not something you should opt for, but you should live within your means.
Laying out a specific budget and savings goal can help you resist temptation and build a corpus. Make realistic goals and work towards them. Automate your savings account and start investing in options like PPF, SIP, ELSS etc.
People often save money all their life and still end up living with limited means. So don’t just save money, invest it. Investment is the best way to keep up with inflation. It will add up over time and you can invest the maturity proceeds to create a comfortable corpus.
Debt can prove to be a roadblock between your dreams and your reality. It is a good idea to avoid debt altogether. However, some debts are mandatory like home loans or loans are taken to purchase property, education loan, etc. However, some unnecessary debts can prove to be an interruption in your life. If you have debts like credit card dues or personal loans try to pay them off early as they carry high-interest rates. Thus debts have the potential to drag you down.
Don’t let debts interrupt your potential to save money. If you have existing debts make it a priority to get rid of it first and then go for other investments.
See Also: How to Manage Your Money Like the Rich?
You should build some source of passive income that will help you to earn with little or no effort. These sources allow you to generate automatic income with minimum effort. Some examples of passive income include renting your old car or renting out a property, selling advertisements on your blog or website, selling products online, etc.
If you have sound knowledge of investing, then you can create an additional income by investing in dividend-paying stocks. Stocks help you generate a considerable income if you remain invested for a longer time.
Don’t just rely on only one type of investment and save all your money in it. Rather you must look to diversify your portfolio and try to invest in diverse options to reduce the risk of losses. Every one of us has some favorite investment options but relying only on one investment option increases your chances of incurring losses if the investment fails.
A diversified investment portfolio will yield better returns than a single investment option. Riskier investments like mutual funds, stocks or intra-day trading give inflation-beating returns and whereas traditional investment options FDs, RDs, PPF, post office schemes provide capital protection and hedges the investors against share market volatility. Also, keep a portion of your investment in gold and real estate.
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