Have you ever wondered how some people seem to grow their
money while others always struggle, no matter how hard they work? Let me tell
you a secret — building wealth isn’t just about earning more. It’s about using
what you already have wisely.
Don’t worry if you haven’t done this before. I experienced the same feeling — I
didn’t know what to do about saving, was anxious about investing and had no
idea where to begin. However, I realized it takes time for wealth to build up
over the years. Having an organized plan, sticking with it and staying positive
will help you. We’ll take it one part at a time.
1. How
Do People Define Wealth? ?
Wealth
isn’t measured by luxurious cars or advanced gadgets. Wealth gives you room to
live your life as you like, without regularly worrying about finances.
What
retirement means for you is a comfortable home, whereas for others it is about
being able to stop working early or see the world. Consider for a moment the
meaning of wealth to you before you start.
Once you have your target in mind, all else falls into place.
2. Even
if your savings are only small to start, start saving right away
If
you want to become wealthy, you need to get into the habit of saving often. Even
though it might give you a yawn, it’s still very powerful. I remember I decided
to open an RD with a monthly investment of ₹500. Nothing much happened, yet
seeing the return grow on my bank balance every month encouraged me.
You don’t
have to earn a lot to start saving. If you can’t start with much, ₹1000 per
month is an acceptable first amount to put aside. Paying attention to how
consistent you are is most important.
An easy suggestion is to set up
auto-debit to ensure you’re paying the bill every month without thinking about
it. It frees you up from needing to remember.
3. Test
your knowledge by keeping track of your money each day
If
you have ever asked at the end of the month where your money went, you have
plenty of company. Budgeting is just the act of keeping an eye on your money as
you earn it and spend it.
When you look at what jobs feed, clothes or buy,
you’ll find plenty of ways to cut down on expenses.
You can manage your
expenses with Walnut, Money Manager or a simple notebook. All it takes is 5
minutes a day to write down your expenses.
4. Get
rid of debt as your top priority
Ensure
you pay off your credit cards or loans with high interest, long before you
think about starting to invest. To be crystal clear, I did not know how much
interest was building up when I always paid just the minimal amount on my
credit card.
Huge error! If you avoid it, you let it slowly eat away at your
savings. For this reason, aim to settle your loans sooner. Once you have
cleared your debts, you can start raising your wealth without being forced to
pay off your debt.
5. Basic
Understanding Next, we get to watch your money do the work for you
Just saving money will not make you rich. Because of
inflation, the products you can buy will become less accessible as time goes
on. So, investing is really important. Don’t worry about needing to be a top
investment expert.
Cheque out these instruments if you’re just starting out. Beginners
usually find Mutual Funds easy to understand. You only need to invest
₹500/month to start a SIP. The PPF is secure, backed by the government and over
time it offers a decent return on your money.
After you’re ready, consider buying individual stocks. Research should always
be the first thing you do. You can invest in gold using digital or high-value
bond programs without the need for physical gold.
Don’t make your decisions
based on rumors you see on social media or WhatsApp. Verify the facts and only
invest in things you know about.
6. Always keeps Emergency Fund in hand
Everyone
Needs to Build an Emergency Fund Many things in life happen without warning. You
might lose a job, your health or encounter a broken car all at once. You should
set aside money, so you have the cash you’d need if an emergency meant you
weren’t receiving income for three to six months.
Save a portion of your money
in an account or mutual fund, rather than putting it into a fixed deposit. Just
a short time ago, my bicycle broke and I needed ₹10,000 to fix it.
I was lucky
since I had an emergency fund and didn’t need to borrow cash. Doing little
things like this can keep you calm.
7. Avoid
the idea that you can become wealthy by getting involved in “get rich quickly”
schemes
Do not trust any deal that guarantees to double your
money or give you returns in only 2 months. When something looks too perfect,
there’s a good chance it isn’t real. Many lose lakhs because they use fake
investment apps or take part in illegal chit funds.
Be careful not to believe
all the promising offers shown in ads or by agents. It takes time to create
wealth, rather than happening through instant gain. Don’t act recklessly; look
after yourself.
8. Always
keep yourself updated with new information
Acquiring
knowledge leads to better judgement in what you do. You don’t have to become an
expert in finance, but a little bit of information can have a big impact.
You
can learn a lot by reading good blogs, watching educational videos on YouTube
or listening to finance podcasts in your language. I have seen several in
Hindi, Tamil, Telugu and additional Indian languages.
9. Think
Long-Term Building wealth is much like planting a tree
Save the details you have
written, keep money coming in regularly, use netting to keep pests away and
remain patient. Don’t become discouraged if outcomes occur slowly. Growing your
money will take less time than you might think, thanks to compound interest.
Closing Thoughts: Don’t Wait and Do It Now. All you really need to start saving
money is a positive attitude, not a finance title or huge savings balance. You
should have only intent, patience and discipline to learn effectively.
Closing Thoughts:
Begin
small. Make a goal. Learn something new every day. In time, you'll not only
have more money, but greater peace of mind. And hey, if you enjoyed this guide,
please do share it with your family or friends.
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