Grow Your Wealth
Grow your wealth
- Step 1: Save Smartly. Saving is the first step towards wealth creation.
- Step 2: Turn your monthly saving into investment through SIPs.
- Step 3: Increase your investment periodically.
- Step 4: Invest lumpsum when possible
Professional Finance for Your Business
4 Steps to follow to generate wealth
Saving is the first step towards wealth creation. Now when we say ‘save smartly’, it does not mean saving whatever you are left with at the end of the month; it is more about learning to manage your expenses in a way so that you can save the amount that you want to save every month Now, the easiest way to do this is by putting away the money you want to save every month as soon as you receive your salary
Turn your monthly saving into investment through SIPs
Saving is not enough; based on your financial needs channelize your monthly savings into investments. Now, your investments have to have an objective and accordingly, you should define its tenure and then select the right investment tool for it. This is not an impossible task, but you have to do it right. Here is what you should do.
Increase your investment periodically
Your salary increases every year, so your investments should also increase every year. And your investments should increase in the same proportion as the rise in your level of income. That is, if you get a 10% increment at the end of year 1, then in year 2, you should increase the proportion of investments by 10%. Again, at end of the year 2, if you get a 20% hike, then in year 3, your investments should rise by 20%. Let’s understand how it works
Invest lump sum when possible
Whenever you receive a lump sum in hand – like when you receive a bonus or a maturity amount for an investment – instead of splurging the entire amount, invest a part of it in your existing mutual fund. This way, your money will also grow faster helping you in two ways. Either, you can achieve the goal before time; or if you want to keep the tenure fixed, then at the time of maturity, the amount that you will receive will be more than the target amount.