Some people dream to be a crorepati in their financial career, but that remains as a “Dream Forever”! Do you know the reason why!
It is due to lack of financial discipline and lack of commitment from their early stages. Actually they assume to be crorepati, but fails to implement it financially! How is it possible to achieve “Crorepati Dream”! Read the rest story-
- Starting investing early– They should start investing from the first pay-cheque itself! Even though it is strange to hear, but if he started investing from his first salary aiming of crorepati dream, it becomes a habit to give priority to savings instead of temporary excitments.
He should take maximum risk in his early career as he has no financial obligations at that time and as years passby, he has to bear financial responsibilities as a part of his life. So start investing from your 20’s
- Selecting products which beat inflation– While selecting products, he should consider inflation and invests accordingly. As inflation reduces the purchasing power of money, he should invest in instruments that beat inflation!
- Estimating the future value of money– You may hear that your grandparents spend few paisa’s for their day to day needs. Is it possible now?No! This is because the reduction in purchasing power of money.
If you thinking to be a crorepati now, you should consider the futuristic value of your goal after 15,20 Years. A crore value today is not same as 15, 20 Years! You should project the furistic value by calculating on online calculators which are available for free on net. Take help of them and estimate your futuristic value.
- Don’t underestimate the power of compounding– Compounding means earning interest on interest, This makes wonders in the long run! The only thing you have to do to enjoy the compounding power is having ‘”Patience”
Albert Einstein called compounding as the 8th wonder of the world. According to him-“He who understands compounding earns it; he who doesn’t pays it”. You may not see the magic in the short run, but if hold your investments with patience for long term, You will definitely reap the benefits of compounding
- Don’t disrupt your investments until you reached your goal– Many people start investing to be crorepatis, but due to your temporary needs, you may withdraw your investments in the interim.
This applies in equity investments too! Some people gets panic during market crash and fear of losing out their capital, they withdraw their investments in the middle forgetting their dream.
While some people books profits thinking that markets would go down in the future. If the market gives huge returns, they book profits and book losses when the market is in correction mode.
Both are most common things done in the equity market! By withdrawing your investments in the interim would loose compounding power especially while doing sip. The intention of the sip is to average out the ups and downs of the market. By redeeming, you are loosing “Rupee-Cost Averaging” which would work-out to bring compounding power to your investments.
Due to this reason Crorepati dream is not possible to everyone. By controlling emotions and staying with patience, you could be crorepati, but start investing early and continue for long term, then you will definitely become crorepati.