Get rid of the perception that whatever you do, you won’t have any money left over at the month-end. For, if you are able to do that, you won’t even realise how much money you are able to save at the end of every month. So, if you want to make money, then think like a saver.
You can only make money when you are thinking in the direction of saving and investing. Try to think in the direction of creating wealth rather than just wanting to get rich.
Develop a saving habit:
Now you must be thinking what’s new in it? Well, it’s easy to say that saving can be done on monthly basis, but it becomes very difficult when you start saving your money on the practical ground. The habit of saving cannot be created in a day but it takes time – maybe six months or one year or more. It depends upon person to person. Make sure that you end up developing this habit no matter how much time it takes. Expenses should be done after you have saved your money. It is difficult but it’s the right way to save money. Have separate bank accounts – one for maintaining your savings and the other for using your daily expense need.
Expenses = Income – Savings
Before making any expense, first, exclude the savings portion from your income that how things will work upon and you may be able save more.
Diversify your savings
Just saving some money will not serve enough for you to make wealth. However, without savings, you cannot even think about it. Well, the idea behind diversification is not only to save money in a bank account and get a small percent of return but to spread your savings in multiple products so that you can get good returns on your savings while ensuring that the market risk is reduced to an extent.
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Right way to choose investment option
There are multiple products in the market which are giving enormously good returns but are they really good for you? Invest wisely, take a help of a financial adviser. Analyse you needs and wants and before taking any decision on making investments. First, analyze yourself and ask yourself that are you ready to take the risk? It is easy to say high-risk high return, but what if the returns go negative? If you are well prepared to bear the loss, then go for investing in that particular stocks or mutual funds. However, if you are investing in for the long-term, the loss of losing money becomes negligible, especially in the case of investing in mutual funds.
Do not compare with others
Comparing your investments with others is a wrong practice. It happens that two people investing in a fund get different returns because of the difference in the time they entered the market. So, rather comparing the same you should be focused towards the goal in which you have invested your money. Make sure that your money is growing despite comparing it with others. Also, you should not compare the returns from funds because you may never know the fund which is giving so much of return is involved in highly risky stock which may affect your financial goal if the investments are not made for a very long term horizon.
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Come out from the comfort zone
Do not be a spendthrift and loose money uselessly. Get yourself out from that zone. The more you will be in your comfort zone, the lesser money you will be able to generate. So still, if you have not planned out your finance you can start it from today. It’s never too late to start planning for yourself. Get your financial plan prepared for yourself and start saving towards your priority financial goals of life.