Money makes more money. It’s as simple as that!
May be below points could help you in getting your thoughts more clear of about how to get rich.
Never buy what you don’t need at the beginning of your career – remember a car is a liability, not an investment. An iphone is… well just another phone!
Never get into any loans unless absolutely necessary. I’ve seen people going for 30 year home loans just because a relative bought a house, they would end up with less than 2K post paying their EMIs.
- Understand that investment is different from saving.
Split your income into 4 equal parts. One for Investment, One for Saving, One for your expenses and the last part is for you to decide.
Save until you have 1.5 Lakhs in your savings account. Use this as an emergency fund, if it gets used replenish it. Once you reach your 1.5 Lakh goal, redirect the surplus to Investment.
- Invest in Mutual Funds, there are a hundreds of them.
Once you have a strong financial base (25 Lakhs and above) use it to make a passive income. Don’t rest until you have at least 4 incomes.
Hire a certified financial adviser, pay him/her. Free ones give shit advise, have a profit sharing equation. If you think things are not going as per plan, move on and find a better adviser.
- Have discipline and patience. I cannot stress the importance of these two qualities enough. Don’t expect your mutual fund to deliver 30% returns in a year, have patience. Don’t stop investing just because the market went down a bit, be disciplined.
- Most importantly, be updated. Stay hungry for information, there is nothing out there that cannot be used into an opportunity. Someday, somewhere if you are smart enough you will connect the dots and make things work.
So basically ‘how to get rich’ has been revealed. Adhere to these points and thank us later!