A Guide To Grow Your Wealth

In the strange times we live in, we will need age-old wisdom and awareness regarding everything, including investment. We bring you a comprehensive guide to ‘Grow your wealth’ amidst Covid.

Cut Down on Expenses

Well, the lockdown has helped a lot in this regard, yet there are cases of people binge shopping on Amazon, or binge eating via Zomato to make up for the isolation. This is a great time to save and wealth building includes both, “Saving and Earning more.”

We’ve already seen Warren Buffett mention this many times that, ‘expenses should always be lower than your income’, but larger gaps between them leads to quicker wealth generation.

Money saved can be invested, money invested leads to wealth.

Things You Don’t Need

Do I or we really need that? This is a great question to keep asking yourself before any purchase. Sure, it can be tempting to let go but “if we spend money on things we don’t need, we won’t have any for things we need!”

Resist and save.

Savings Rule (Percentage of Income)

The more you save the better, but the 50/20/30 rule for personal finance management is a great thumb rule. US Senator Elizabeth Warren came up with this one.

• 50% goes for essentials like Utility bills, EMIs, Grocery bills etc.
• 30% for lifestyle expenses like Entertainment, Shopping for fancy clothes or gadgets etc.
• 20% goes towards savings.

Now, we know simply saving is not enough, it should be invested with an end goal in mind. If you are making more and can live frugally to save a higher percentage, even better.

Goals

This is the most important of wealth creation? What are your goals? Retirement? New home? Enough to live luxuriously later on? Your goals need to be clearly defined, only then savings will really make sense.

Define your goals and build your financial plan around it.

Portfolio

Build a portfolio after objectively analyzing your risk profile. Building a portfolio is a continuous process which needs monitoring and adjusting until the balance is set. Your portfolio should be built around your goals.

Focus on your career

The idea we are putting forth here; is to work hard and work long. If you are getting started in a career then this is even more relevant, even if you don’t like the job, give your 100% always.

Strong work ethic will get you there. Strength of character and diligence are great attributes to have in a workplace and these develop better with ‘boring’ jobs.

Finding great opportunities is not easy, the best way is to keep working hard and keep looking too.

Invest in yourself

This is the second aspect to growing your wealth. Saving is the primary one but for you to save more; you’ll have to make more money.

Upgrade/ Educate

MBA’s can be done alongside full-time jobs. If there are certifications which will propel your career forward, go for it with gusto. Financial benefits are often immediate for resumes with add-on skillsets.

Look the part

It’s important to look professional while also being one.

Get a Financial Advisor

If you have a full-time job, then doing the necessary research for a fool-proof financial plan can really be a stretch.

Financial advisors know a lot of options which he’ll be happy to part with, to create a portfolio or financial plan for you.

It’s best to get a specialist, and there are many companies offering this service for free. You can avail it simply by choosing to invest through them. It definitely allows one to focus on other things.

Summary

So these are steps,

1. Start Saving
2. Goals
3. Financial Plan
4. Build Portfolio
5. Earn Move
6. Invest More

This is a long-term strategy/guide, but it will definitely generate wealth. Building a portfolio around goals is the most important part.

It’s not really that difficult, really, simply focus on a few important things and do them with utmost dedication. Once this habit is created, almost magically, new ways will pop-up for you to create wealth faster.