Everyone wants to be rich, but due to financial commitments and rising inflation it would not be possible for all. While some people goes into depression that they will never become rich by this high inflation in India!
Yes there is high inflation in India, no doubt about that! But have you ever think why some people are still becoming rich even in this high inflation? Because they develop some good financial habits. When we observe the lifestyle of warren buffet to Jeff Bezos, they are committed to this financial habits as a result they become wealthy.
If you want to be like them, then develop these 5 good financial habits, then you too would be like them! You would be in a better position not even as compared to warren buffet’s networth by following these steps. They are-
- Start Investing Early– When we notice the legendary celebrities sachin tendulkar and warren buffet they started their career at an early age(Sachin at 16 and warren buffet at 11 years of age).
Even warren buffet and sachin begin their careers at such young age, they don’t waste their hard earned money, instead they invested in their desired fields(buffet in stock market and sachin invested in restaurents)
As they invested at an early age their wealth “Compounds” Multiple Times. This is possible as they patiently invested for long term by giving “time” to compound on their investments
- Automate Your Finances– Generally salaried class spend money lavishly once their salary is credited and there would be no cash left to meet the daily needs thereby waiting for the next month salary. In this process they can’t save money; then how would they invest?
The answer is simple! By automating your finances you would invest! Surprised how is it possible?Yes You can, by setting auto-debit for sip in mutual funds,recurring deposits in banks your money would be auto-debited and transferred to your concerned investments a/c.
This is the only practical solution to invest! This strategy develops savings habits as you would be alert on the debit instruction set to bank. As you are aware specified amount would be debited on the pre-decided date, you automatically save money for that goal and thus you can do your investments without any hassles.
- Before spending, differentiate whether it is a “Need” or Want”– Today we are seeing impulsive shopping behavior among youth. They are addicted to the cashback offers, reward points and over-spending! Even though reward points saves money to some extent, this has become a great opportunity for the merchants to lure customers.
To avoid impulsive buying think once whether it is a need(which can’t be compromised on)or a want(can be purchased later).
If you think it is a need and you can’t live without that product then you can purchase that product. But do remember that product is in your budget. If that item is costly, think whether it can be delayed further or not!
Don’t spend heavily on wants as human beings wants are unlimited. If one want is fulfilled another arises. so be careful on spending on wants.
- Never Stop Learning New Things– In these competitive world there is heavy competition in every field. For that you would be updated with the latest courses, professional sills etc
Do remember employers(recruiters)prefers updated skilled professionals to improve their productivity, as a result you would be rewarded with incentives, bonuses and even promotions. To receive these credits you should not stop learning new courses, latest skills etc.
- Plan For Your Golden Days(Retirement)– When we ask youngsters on how they are planning for their retirement, they say- “retirement is too long away; why should you plan from now?”
Yes retirement is 30, 35 years ahead from your current age, but have you ever think in this high inflation how would you survive if you don’t plan for retirement from now onwards!
Do remember you can take loan for housing loan, vehicle loan for your needs and sometimes on personal loans and on credit cards, but have you ever heard of organisations giving loans for retirement? The answer is no!
This is because as a young earner business organisations estimates your cash-flow and approve loans, but on retirement your income will be zero, then whom do you contact for urgent cash at that time? No business enterprise would like to give loan for retirement needs, so you should plan for your retirement yourself.
To live happily and securely in this high inflation you should plan for your retirement right from now! Remember you would live for another 20, 30 years after retirement, during that time inflation won’t cease, it will continue on its own path(prices rises faster but your income remains stagnant).
So to live happily in your golden years you should invest major portion of your 30 years working life for another 30 years of peaceful retirement!