Image Source : FILE PHOTO/PTI By delaying your savings until you are older, you are depriving yourself of the means necessary to achieve financial security.
Have you ever wondered, “How can I become wealthy?” Everyone fantasises about winning the jackpot and becoming wealthy miraculously.
Numerous people aspire to be wealthy, but what that entails varies greatly depending on one’s experience and background. Some people believe it means never having to worry about money. Others prefer not to work as many hours. Another way to define it is full financial autonomy. Building wealth has emerged as the primary goal of many people, especially in this day and age, due to the increasing cost of basic necessities and the bleak economic prospects. Because not everyone is fortunate enough to win the lottery or inherit a large sum of money, the less fortunate among us must seek alternative means.
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Experts offer advice on how to get on the road to greater wealth, no matter what your definition of “rich” is. Ashish Aggarwal, director, Acube Ventures, shares his knowledge on how to become real rich:
Save money
Given that the majority of us are unlikely to come upon a sizable quantity of money accidently, it is essential to have some money set aside in order to make it work in your favour. So, by delaying your savings until you are older, you are depriving yourself of the means necessary to achieve financial security. After all, you can make more money with the money you currently have!
Investor mindset
Developing the proper mindset is the most considerable challenge you could encounter when trying to become wealthy from nothing. Controlling your thoughts and budget is necessary if you want a firm grip on your finances. Many financially successful people perceive themselves as being broke. You may control the need to buy by telling yourself, “No, I can’t buy that right now.” This will allow you to preserve the money instead of spending it.
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Consider investing in the stock market
Investing in the stock market with the average stock market return clocking in at 10-12% per year, you could quickly get rich by investing in stocks. This year the entire market gave good returns. Defensive investors can go for fixed-income products, as their yields have increased due to increasing interest rates. A balanced portfolio approach can also be taken in this case by having a 60-40% portfolio mix.
Lower your expenses
According to Siddharth Maurya Resource Specialist, Expertise – Real Estate and Fund Management, “Being rich and being wealthy are two different things. If you earn a lot of money and/or have lots of money, you are rich, but you are wealthy when your passive income exceeds your expenses. Becoming rich is not difficult, all you have to do is find more ways to earn more. And of course, you can save considerably by reducing your expenses. In fact, these two are the best ways to get rich quickly. As for reducing your expenses, this might be difficult for some people, who are accustomed to living a lavish lifestyle and always spend more than they earn. But, this is a big mistake and one that will cost you severely in the later days of your life. You should adopt a frugal lifestyle now when you have time. Always try to spend less than what you earn and invest the rest in high-growth opportunities.”
Utilise and invest in your skills
“There are many ways to earn more. If you are a working person, try to upgrade your skills and learn new, career-oriented skills that can help you make more money. Switch jobs to get a high raise every 2-3 years. You can also make good money by investing or trading in the stock market. Trading is riskier than investing but also highly profitable. Other proven ways to earn more include starting a business, becoming a venture capitalist, and freelancing,” Siddharth Maurya.
Invest in real estate
Anurag Goel, director of Goel Ganga Developments said, “Purchasing, establishing, and selling real estate has always served as a popular method for individuals to amass wealth. You must hand pick and create the ideal properties in the right areas.”
“You are vulnerable to property market recessions and depressions. Even so, in the long run, this is a tried and true method of accumulating wealth. You will have something to fall back on. If you purchase land in your mid-20s, its value will increase and your Return on investment will be iterative after 10-15 years, he added.
Incorporating aforementioned tips may not assure you a successful future. Regardless of the obstacles, it is critical to keep the big picture in mind. However, it will undoubtedly eliminate numerous fiscal issues from your life. Maybe, one incremental step at a time, you’ll get to be the person you’ve always wanted to be.
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