It is said that dreams come true, but if someone steps in the right direction, becoming a Crorepati is a dream for many. If you follow the seven-point scheme given here, then you can become a Crorepati.
start early
The day you make your first income, set aside some money from it for investment purpose. The sooner and the longer you invest, the better. This helps you invest less. The 1000 rupees invested at the rate of 12% will increase to Rs 3,105 after 10 years. However, if you want to deposit it for 30 years instead of 10 years, then it increases to Rs 29,959. Start investing soon for long term.
Be regular with your investment
Since many of us get money every month as salary, we should invest every month. Systematic investment in an RD, post office, or equity fund in a bank helps a lot. Regular small investments are not cumbersome. This is much easier than a large amount. If you invest 10 thousand rupees per month for 10 years at the rate of 10 percent, then you will deposit Rs 23.2 lakhs in 10 years. At the end of 21 years, you will have Rs 1.14 crore.
As your income increases, increase your investment
If you decide to increase your investment with increase in income then you can speed up this process. For example, instead of investing Rs 10,000 per month, if you increase your monthly investment by Rs 1,000 at the end of each year, you will reach Rs 1.18 crore by the end of 18 years. Increasing your investment also improves lifestyle.
Do not leave money in the account, invest soon
Never let money remain in your account. If you can put it into the best investments soon, then you will get more time to compound it. If you have received some money in the form of bonus or maturity income of some old investments, then make sure that you put it to use as soon as possible.
Diversity and imbalance
You can be a good investor, but the markets go their own way and do not always prove to be helpful. Macro events can bring your deposits to the ground. This type of unstable time can get you off track. If you have an asset allocation in line with your financial goals and risk appetite, you have a better chance of accumulating a good amount of money. Periodically rebalance your asset allocation.
Avoid complicated investments
Warren Buffett, the most successful investor in the world, promotes the concept of the cycle of investment efficiency and simplicity. Even he does not invest in businesses he does not understand. Averages recommend index funds for investors. If you avoid trading foreign investment products or derivatives due to lack of understanding, then a slow and steady approach will help you reach your goals.
Stay away from high cost loans
Inflation and taxes are the most deadly enemies of investors. These cannot be ignored. A clear understanding of post-tax and post-inflation returns can help you make better investment decisions. If you take this seven basic point seriously, then you are on your way to becoming rich. Then becoming a millionaire would not be a distant dream. Staying away from high cost loans will speed up the process. Although loans cannot be completely avoided, still hold them. Wherever necessary, consult a consultant.
No comments:
Post a Comment