Everyone wants to be financially independent! But it is possible only for some ones, Do you know the resason why?
Financially successful people inculcates savings and investments habits from their initial years! Their self-discipline towards savings make them financially free from worries and economic problems.
If you want to be one of the successful investors follow these steps which are done by common people. To differentiate from their mistakes, we are enclosing “Successful Paths” to be followed to become rich. They are-
- Develop Savings habit from your initial years– A tree is grown even with a small seed. If you start saving from your childhood, that small small contributions will grow into a huge corpus. There is a saying- small small drops of water fills into ocean.
So don’t hesitate to start saving that you have small coins/rupees, starting “Saving” is important even it is a small amount. That small small rupees with multiples into hundreds, thousands and lakhs so on, This would be possible only if you start saving today itself! Don’t delay!
- Turning savings into investments– Even though saving money is important, savings won’t allow you to be rich! This is due to inflation(Rise in prices and gradual decrease in purchasing power of money year-on-year)So to combat inflation, one has to convert their savings into productive investments.
This investments generally beat inflation carried with little bit risk to your capital! Though they are little risky bet, history proves that those investments outperforms inflation in the long run. So take calculated risk to be a wealthy person.
- Don’t fall in debt trap– Once you started earning, you may have received phone calls offering credit cards and personal loans.
Generally credit cards carries 24-48% interest rate and 12-14% interest rate for personal loans. Just taking loans as they called you falls into a debt trap. They are not offering you “Free”. You have to pay the bill on month end, you are sole responsible for your credit history. Don’t fall prey to phone calls offering credit cards and personal loans. Just take only if it is “Needed”, don’t take them for “Casual Shopping”as you would definitely fall into debt trap.
- Avoid spending money on bad habits– By starting with “Fun” bad habits would be developed. That habits makes you addict to them and make you can’t live without them even a hour.
It spoils your health as well as your wealth. If your health spoiled, you can’t work further and your family would come on to roads with financial problems! Have you ever thinked of it?
Though leaving “Addicted” habit is a tedious one, gradually control your mind and body and convert your thoughts to your likely habits like spending time with children, doing yoga and meditation.
If you do meditation and yoga your mind will get controlled and you can leave your smoking, drinking habit. Try to spend free time with your family which is also a medication to addiction.
- Don’t waste money for temporary pleasures– Don’t spend money for pubs, parties, birthday celebrations etc. By following others you might think that your financial status allows you to celebrate. But their economical condition is different, your’s would be different.
If you waste money on parties, your friends are with you! But if you face any financial crises, they won’t help You! This is fact!
We are not saying not to celebrate, instead of spending lavishly with friends, celebrate only within your family members. They are only with you lifelong. They would help you during emergencies as you are blood-related to them.
- Not Maintaining your cash within your reach-Always maintain your cash within your reach. They should be liquid and easily withdrawable at any point of time.
You should not run for money in case of emergencies. Your cash should be easily accessible and diversified. You should be able to withdraw cash through ATM’s by diversifying your emergency cash in 3-4 bank a/c’s so that they can be withdrawn easily upto banks daily limit.
- Not disclosing financial information to dependents– Some people don’t trust their shadow! They won’t disclose financial information to their family members, thinking that there is no need to explain his financial position to them.
But this is a huge mistake! When the breadwinner suffers with any unfortunate event and not in a position to move, he can’t be helped as his financial dependents are unaware of his physical assets.
So in any position, the breadwinner should disclose his assets and liabilities atleast to his better half. If his family members are aware of the liabilities and assets that he own, he would be saved in emergency.