How to become rich ?

“To become rich, you have to be making money while you’re asleep.”- David Bailey

Spend less, Save more

The golden rule to become rich is start saving as much as possible. Simply saving a small amount monthly can help you collect huge sum over time. Now you must be thinking how to do it? I would suggest start with saving the extra money you spend unnecessarily on privileges. One of the best ways to fulfill your desired goal is to distribute your salaried amount into expense heads. For instance, one can divide the salary into 4 broad categories, that include: 30% on house and food expense, 30% for lifestyle, 20% for savings and another 20% for debts/credits/loans etc. Once you get into a habit of saving, you can steadily increase the portion of your savings each month.

Know your goals

Visualize your Financial Goals to become rich. Planning your finances can not only grow your money, but serve as a major support as well all times of your life. It is important to set financial goals regardless of the age. You can target your goals systematically by dividing it into time frames, that are- short-term, mid-term and long-term. This categorizing of goals gives a realistic approaching to your financial goals. so, start setting goals & take a first step towards your savings journey.

Have a Investment Plan

When you are prepared with an Investment Plan, it not only helps you stay safe during bad times but also ensures you reach the desired corpus. Once you know the benefits of a financial plan, you can easily set your financial goals. Create your financial plan here- Fincash.com

Make a Wise Investment

Over the years, as you start investing you realize the growth of your money. Typically, investments grow over time and so does the money. For example, the value of Rs. 500 does not remain same in next 5 years (if invested) and it grows over time! Therefore, investing is very essential for everyone. It’s easy! There are various Investment Options in India like Mutual Funds, Fixed Income Instruments, etc.

Say NO to Debt

Debt is a big NO when it comes to becoming rich. In order to save money and become rich, it is suggested to remain debt free throughout. What’s the point of becoming rich if your entire money is not your possession?

Remember: High Risk = High Returns

In order to become rich, one has to invest in instruments that offer good returns. But, it is important to understand with high returns comes high risk as well. So, if you wish to save more for your future, you need to invest in high risk instruments like equity funds. There are various other investments that offer high returns.