The knowledge that you received during your expedition around the world will help you in getting rich by building wealth.
Packing your backpack, exploring new places, meeting new people – these things always excite us! The happiness associated with them is a huge motivation factor towards productivity. Travelling does not just make you richer with experiences; it makes you richer with knowledge. The knowledge that you received during your expedition around the world will help you in getting rich by building wealth.
So, let us put these interesting learnings to a good use and improve our wealth management skills.
You want to travel but, if you don’t a have proper plan in place, then it will all be haywire. Select a destination, plan a route to travel, allocate a budget and a backup plan in case of any emergencies. These are the major concern points which you focus on while planning your vacation. Disturbance in any one of these verticals will hamper your entire journey.
So, why not plan out your wealth building strategy in a similar manner? You can first set a financial goal, choose the right investment options, allocate a set amount to invest on a regular basis and build an emergency fund as a backup. This practice will help you in putting your planning skills to a good use.
Time management is essential when it comes to travelling. If you miss out on your flight because you couldn’t make it to the airport on time, will lead to a major bummer and can cost you a hefty amount for boarding a new flight on such a short notice.
In the same way, while planning your finances it is necessary to keep the time factor in mind. Your financial goals should be well defined and bifurcated as per your priority. Start building funds based on your short-term and long-term goals. Allocating the right amount, for the right time will surely lead to achieve your goals.
Getting out of the comfort zone
Travelling is an experience; you must cherish every moment of it. When you travel, you have to let go off your comfort zone and adapt to the changes that comes your way. You might experience instances when you did not like the taste of the food, or the bus ride was very bumpy. But by living these moments, you somehow manage to reach your destination with a big smile on your face.
Similarly, when you are planning to build your wealth, you will have to step out of your comfort zone to make your money grow. Investing in debt instruments is necessary but, along with it, investing in instruments which have risk factor attached to it, is important to let your portfolio grow.
Investing in equity can benefit you in multiplying your invested amount. A little risk taken today is necessary to benefit you in future.
They say – Patience is the key to happiness. While travelling, you have to be patient as things may not go the way you want them to be. Long train ride, no connectivity in your phone, language barrier and many more such uninvited events. You have to be patient in such situations and rather take it up as a challenge and find out ways to tackle these obstacles.
If you are facing any difficulties in managing your wealth due to volatile market conditions, just be patient and avoid reacting to the fluctuations in the market. The more you panic, the more difficult it will be for you to make the right investment decisions. Calm down and analyse the entire situation first. Research thoroughly about everything and then make the right investment decisions. Rebalancing your portfolio is the right way out in such crisis situation.
Henry David Thoreau rightly said – ‘Not until we are lost, do we begin to find ourselves’.
Keep wandering, keep learning and keep investing!
(By Rahul Jain, Head-Personal Wealth Advisory, Edelweiss)