HOW TO GET RICH

HOW TO GET RICH

Friends we live in a fast world today, fast locomotives , high speed internet connection, fast cooked food, from computers to mobile phones, from banks to insurance every company wants their products to be the fastest in market.

So one cannot be blamed if he / she wishes to become rich
Instantly but then these are the people, who fall prey to frauds n scams .

 Because they are the ones who could be easily lured and duped by get money rich instantly plans , ponzi schemes . Don't we here of such scams every now n then ?

Friends their is  no  mantra that can make you rich overnight , but there are some proven systems, which when followed religiously can make you rich .

Here being rich is a subjective thing , for some it could be some lakhs, for some a couple of crores, and for some it could mean to be next BILL GATES.

SO whatever being RICH means to you , here are some rules and tips that would definitely make you RICH .

So to all the folks who were not born with a silver spoon in their mouth , let's dive in.

1. BELIEVE YOU CAN BE RICH.


Friends at the very first place , you should believe you can . You need to have a very strong self belief .Whatever we see around today be it aeroplanes, skyscrapers, fast cars was an outcome of someone's belief.

Belief has moved mountains, it has put man on moon, with belief comes action. AND with action comes results .

So no Matter what your background is , what your qualifications are if you want to be RICH, the first thing you need to have is immense self belief.

Late MR DHIRUBHAI AMBANI had started his career as petrol pump attendant , STEVE JOBS had started APPLE INC in a rented garage , though their beginnings were modest ,they went on to create history.

2. EARN MORE .


See friends you can't be RICH by SAVING MORE , you can only be rich by EARNING MORE.


People DON'T HAVE A SAVING PROBLEM THEY HAVE AN EARNING PROBLEM. ( Let this sink in )


EARN MORE SO YOU CAN SAVE MORE AND THEN INVEST MORE.


NO matter you are into a job, or a business, you can always try to make some extra bucks. There is always an opportunity waiting for one to tap it. Learn the skill of working smart.

Upgrade your skills ,Try to create multiple earning options, no matter how small it may be , I'm sure with time it will manifest into big earnings.


3. START INVESTING IN EQUITIES.


Friends with earning parallely you should start investing in equities , I recommend you should start investing in equities, right from your first salary .

Only equities have the potential to beat inflation in the long run.

Why stock markets finmaaster? My uncle told not to put your hard earned money into a place, where there is so much volatility, instead he suggested me to save money into recurring deposit.

I agree stock markets is an Avenue of high volatility, but only in short term , in long term it will reward you very handsomely.

Friends what if I told you , 1000 rs invested in shares of wipro in1980 would have become 64 crores today .

I'm sure many of you would find it too hard to believe , but it's TRUE. Go Google it out yourself.

Finmaaster ,what if I don't know to read company balance sheets, I'm not from a commerce background, don't know how to pick right stock which would prove to be a multibagger.

See friends you need not be a market guru , or a stock Pandit to start investing , you can start your journey of investment by doing SIP ( SYSTEMATIC INVESTMENT PLAN ) in any of a good direct mutual fund .

For beginners, you can start with a low cost index fund, and once you have tested the depth of water , you can give yourself more exposure to equities.

Apps like GROWW, PIGGY , COIN allow you to invest in mutual funds with a starting amount being 100 per month. HOWEVER it is highly recommended to increase your sip amount with proportion to your income.

Friends only investing is not important, you need to start investing EARLY and stay invested for long time.

WARREN BUFFET was just 11 when he bought his first share.

The more time you give to your investments to grow, the more it will multiply. THE POWER OF COMPOUNDING will show its magic .

Let's understand this with an example.

Say mr X who is 25 years old, and working in a private sector has current in hand salary of 20k decides to invest 2k in a large cap fund for a tenure of 35 years .

And assuming that his portfolio grows with a modest 12% pa then at the end of 35 years ( ie by the time he is 60 yrs ) he would have collected 1,10,33,319 rs.

4. PROTECT YOUR MONEY.


PROTECTING MONEY is as important as MAKING MONEY.

There are certain factors that have the ability to ruin the party, like illness, death , inflation etc.

* THINGS TO DO

1. BUY ADEQUATE MEDICAL COVERAGE.


FRIENDS you all know , how medical expenses have skyrocketed over the last few years , so it's very important to get an adequate medical coverage ( HEALTH INSURANCE) for you and family .

2. BUY A TERM POLICY.


friends always keep investment and insurance separate, many people tend to mix it up .

That's the reason endowment policies are so popular here in INDIA ,don't buy an endowment life plan instead opt for a term plan.

In this way at least your family is not going to suffer financially, when you are not around.

3. PLAN FOR YOUR RETIREMENT.


Most ot the people think there is no need to plan for RETIREMENT.

But just think with the rate at which inflation is going vertically, will you be able to sustain the same lifestyle and that too without any income ? Ponder over it.

4. DEVELOPING HABITS OF RICH PEOPLE.


Friends as I told you earlier, becoming RICH is a process, it's a sum total of many small habits that you develop on the way . RICH have different habits when compared to poor or middle class.

Some of the habits of rich people are listed below.

* TRACK YOUR EXPENSES AND INCOME.


FRIENDS BELIEVE ME EARNING MONEY IS EASY , MANAGING MONEY IS DIFFICULT.


You should have the habit of tracking your cash inflows n outflows. Money will multiply only if it thinks , it's in safe hands .

RICH PEOPLE always track their expenses and incomes.

* PAY YOURSELF FIRST .


Pay yourself first means , you should save first and think of spending not otherwise.

RICH people are a big propagaters of PAY YOURSELF FIRST PRINCIPLE .

* GET FINANCIAL LITERACY.


RICH have a habit of reading a lot , they spend a lot of their time in educating themselves.

We Indians are very poor when it comes to financial knowledge, so educate yourself.

How finmaaster?

Read books , RICH DAD POOR DAD , THINK AND GROW RICH , THE INTELLIGENT INVESTOR etc to name some.

Read articles from moneycontrol.com , valueresearchonline.com , Morningstar.com , finmaaster.com 😉

The more you read the more you will discover your ignorance, so next time before you laze on your couch and spend hours in front of that idiot box , go grab a copy of any of the above said books and start reading.

* BUY ASSETS NOT LIABILITIES.


ROBERT KIYOSAKI author of RICH DAD POOR DAD defines an asset as anything that puts money in your pocket. A liability is anything that takes money out of your pocket.

According to him RICH PEOPLE ALWAYS BUY ASSETS AND THE POOR AND MIDDLE CLASS PEOPLE BUY LIABILITIES , AND THINK THEY HAVE BOUGHT ASSETS.

Some of the ASSETS are stocks, bonds , real estate etc.


TAKE AWAYS FROM THE ARTICLE.

IF YOU WANT TO GET RICH,


Firstly you should believe that you can be RICH one day.

You should start earning more. Make yourself more deserving, by upgrading your skills , working smart , creative multiple options of income.

Invest in equities. And stay invested for long term.

Buy adequate health cover , life cover, plan for RETIREMENT
In this manner you will be able to protect your money.

And at last , develop the habits of a rich man.

Cumulatively the above things will definitely help you to be RICH.




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