Who doesn’t want to become rich? However, getting wealthy isn’t that easy. It begins with determined consciousness to get wealthy. We all know that to become rich you need to spend less than what you earn. That is because the less you spend, the more you will be able to save. You should save and invest what you have into investments (assets) that appreciate over time. Apart from these, here we are taking a look at a few really easy and ‘anyone can do it’ strategies or DIY tips that can make you a crorepati:
Budget is not only what the finance minister reads or announces in the Parliament annually. It’s what you and I do with our money, setting an agenda, purpose and direction for our money. Many individuals and homes have used various methods effectively:
Envelope Method – You set aside money in labelled envelopes for monthly/recurring/predictable expenses so that you don’t overshoot or run short of basic necessities.
Coupon/ tokens – convert money into pre-paid systems for food/travel/other essentials. For instance: Milk token, Travel passes, pre-paid cards while you travel.
2. Spend to save
There are times when we purchase or buy expensive things to save recurring cost. “If you like freshly-brewed coffee, invest in a good coffee maker which saves you the need to visit coffee shop multiple times and also avoid travel costs / or other costs like picking up the tab for friends etc. Similarly, it could be for a soda maker, buy your own water purifier or RO unit to save buying bottled water. The long-term benefits of such investments prevent recurring expenses,” says Santosh Joseph, Founder & Managing Partner, Germinate Wealth Solutions LLP.
Here are a few ways of saving up on recurring expenses
#Pay for recurring things in advance to get discounts.
# Buy in discount sales ahead of time.
# Buy extra large portions of non-perishable & required groceries at wholesale markets, and you get sizable discounts.
# Buy quality, durable electrical appliance or gadgets which maybe slightly expensive but has a longer warranty, which uses less electricity and lasts longer e.g. LEDs.
# Protective gear and cases for important and expensive articles you have at home so that they help you save replacement costs.
# Invest on setting up your own kitchen or beverage counter to save on eating or drinking out
3. Maintain & Repair
Electronic appliances, jewellery, clothes, almost anything that’s valuable to you needs maintenance and protection. They also last longer if it’s maintained well. Avoid costly and large repairs by maintaining and checking your appliances regularly. Take care, wash and maintain your clothes for longer use. If required and if you are not a fashion icon, get them altered rather than just replacing it due to size changes.
Insurance is not to make you wealthy, it’s to protect you from becoming poor or losing your wealth to various risks to your life and property. “Insurance for your life, health, property and assets is important to safeguard yourself from uncertainty. Though this is a cost/ expense, it’s worth every penny to give you a secure and stable growth in wealth building and risk management,” says Joseph.
5. Instant Gratification
In a world of social media and LIVE feeds on every kind of travel, food and gadget addictions, one is tempted to be aspirational and it’s so promptly backed by an online customized ad for you to borrow to gratify these so-called cool needs. “Clearly avoid all instant gravitation, it’s not Liberating – It’s leveraging. It’s ok to wait for your holiday, it’s ok if you use iPhone 5 as against the current iPhone 7s,” says Joseph.
6. Get a Friend/ Mentor /Advisor
Most of us think we are good by ourselves, thanks to the Internet that gives easy access to infinite data which gives us a sense of knowledge that We Know it all and can do it all. Ask for financial advice from family/friends who have had the experience or opt for a financial advisor who can help you with unbiased advice and guidance.
This is not only essential for you to be earning better or to have a secondary income. “Skill upgradation helps you do well in your given assignment and also makes you independent in many things that you could do better yourself. Very simple things like learning to cook can make a significant impact on your eating out expenses and even greater impact on your health and productivity,” informs Josep