Becoming wealthy requires a long term outlook but short term urgency in actions.
When it comes to building wealth, be impatient with your actions. Be patient with the results.
“Plan long-term, execute short-term and treasure the present“- This is the Guru Mantra, Renowned Astro-Business Strategist, Hirav Shah Gives For Investment.
On that note, Business Guru Hirav Shah outlines 10 points below – How To Invest Now, To Be Wealthy Later?
Start early. The sooner you start investing, the more time you have to stay invested. This means more time for your investments to grow.
2. Regularly Invest, But Don’t Overextend
The key to building a corpus is investing regularly. Corpus is defined as the total amount of money that is invested in a particular scheme by all investors.
Even if the amounts are small, be consistent in your investments, and you’ll be able to reach your goals.
If you attempt to invest a bigger amount than what you can afford with ease, you may end up missing investment targets, and ultimately take longer to build your corpus.
3. Prioritize Saving
Saving shouldn’t be what you do at the end of the month. Don’t save what you are left with. Instead, first save, then service your debts, and then use the remaining money for your expenses. You need to find that sweet spot between the three so that you are not constrained.
4. Have Investment Goals
Every goal is different; the overall importance for two goals may be different, you may be working on different timelines, and the amount you intend to save may be different. So, have an individual saving plan for each of your goals.
Yes, and instead of putting aside a specific amount of money every month into one savings bucket. This way, you actively know what you are putting money aside for, making it easy for you to remain committed.
5. Diversify Your Investments
Every saving instrument comes with its own set of pros and cons. Do not pick up the first one that comes to your mind, just because it is easy or convenient or was recommended by your bestie. You need to understand if it would work in your specific situation if you are to use it effectively.
For example, if you are saving for your child’s school fees payable 6 months down the line, you need to opt for something that is as secure as it gets and will give you decent returns. So you may want to invest in a recurring deposit. But when you are planning to buy a car two years down the line, you would be better off investing in mutual funds as the scope of gains might be higher.
6. Invest In What You Understand
You need to understand the basics of how a product works before you start investing. For instance, you put money in FDs for a specific period and earn interest. If you break your FD too soon, you may have to pay a penalty. That’s something almost everyone knows.
However, if you invested in an NSC, for instance, you cannot break it until maturity.
So bottomline is, understand the terms, conditions and disclaimers before you invest.
7. Somebody Else’s investment plan, never copy
What works best for your friend may not be right for you. Different people have different reasons to save, lifestyles, saving goals, risk appetite, and more. As no two people are exactly the same, neither are saving goals. So figure out what your requirements and constraints are and build a savings plan accordingly.
8. Wisely Use Debts
Debts from unsecured credit are very expensive and can eat into the amount of money you can save. However, not taking up a credit can also be a difficult alternative, as you will be under pressure to build a bigger corpus in a much shorter span to meet your life goals. This path leads to resorting to risky investments that promise quick returns and is best avoided.
So the trick here is to use credit to your advantage so that you get to eat the cake and keep it too. Restrict credit card debts and personal loans to a minimum and use secured credit such as home loans to reach your milestones faster and easier.
At the same time, work towards building a bigger corpus that helps you pay off your loans earlier and lets you focus on the other pleasures of life.
9. Rejoice Milestones
Reward yourself for hitting every major milestone. These rewards need not be monetary or involve spending money. It can be as simple as taking a day off from your usual routine or whatever makes you feel satisfied.
10. Keep In Mind To Focus On The Now
Maintain a balance between saving too much and saving too little. While you need to optimise your savings, it should not necessitate compromising your lifestyle too much. Ultimately, you are saving today to ensure that you can up your lifestyle in future, so find avenues for enjoying your income as well.
Do you know when Warren Buffet started to invest?
You will be surprised !!
Yes, Warren Buffet started investing when he was 11 years old. Currently, he has a net worth of around 103 billion dollars.
On that note, Prolific Business Advisor Hirav Shah Suggests- ” Invest NOW, to be wealthy later ”
Lastly, Congratulations in Advance!
Investing your money is the most reliable way to create wealth over time- Concludes Shah.