INSUBCONTINENT EXCLUSIVE:
bring the water level up and help it quench thirst
What seemed highly improbable at one point became a reality in no time!
The crow analogy has a lesson for us
We, too, can achieve our financial targets by investing regularly, understanding financial tools and balancing the debt, savings and
expenditure mix.
These five tips can come in handy in creating long-term wealth
Check out.
Early bird catches the wormWe have been taught our whole life that money begets money
Contrary to popular belief, building wealth from scratch is not unachievable
so that savings have a longer runway to grow
A steady kitty of savings needs to be invested periodically by keeping expenses as low as possible for as long as possible, along with
Exposure to savings, expenses, budgeting and investing at an early age can equip savers to take informed decisions for a financially secure
Understanding investment basics is critical, particularly for young people who are early in their career
While good decisions increase potential to grow capital, any wrong decisions or indecision can hamper long-term financial success
Spending two hours a week to read and build skills and knowledge for taking informed and effective money management decisions will go a long
young nowadays end up taking up more and more loans as and when their incomes start rising
Debt, if not managed well, is quicksand that can ruin your dreams
One large component of credit taken by individuals goes into buying their homes
While this is important and aspirational, the stage of their life at which they purchase a home will have a large impact on end-finances
when they retire.
Laying out specific money and savings goals can help curb the temptations of taking credit
In addition, investors should pen down realistic goals for their net worth and revisit them from time to time
Automating finances wherever possible will help
SIPs by way of auto debit at the beginning of the month are a tried and tested tool for long-term wealth creation.
Abhishake Mathur, Senior
A plan covers key questions like how much investments are required for each goal and how much to invest in an asset class (equity or
debt).
Yet to make a detailed plan Worry not
Analysts say one can at least have an investment target
Invest before you start to spend from your monthly income.
Make your job workEmployee provident fund (EPF) is fine
But on top of that, if your employer offers NPS or superannuation schemes, do subscribe to them, say experts
Retirement funds impact immediate liquidity, but can secure one's retirement.
The equity route Investing in equity through mutual funds or
even directly in shares is a good way to benefit from the power of compounding
