Do you think Money doesn’t flow easily? Or do you feel you are unable to manage your Money? Most people think they need to work extra hard to be Wealthy. Well, it’s only because they are stuck in the vicious cycle of Working & Spending. However, do you know that this cycle can be consciously broken? With Right Financial Knowledge it is possible.
Well, most people often confuse being Rich with being Wealthy. Growing Rich & owning a lot of possessions can not be considered being wealthy. People often make a lot of Money very quickly & lose it at the same pace. They make some of the obvious Financial Mistakes & in no time they are back where they started or even worse they get stuck into mediocrity.
How smartly you can accumulate & maintain money in your life, determines your wealth. True Wealth is when you own Real Assets and not just Possessions. A Fancy House or a Sparkling Car are often mistaken as Assets when in the concrete, they are only Possessions.
What is an Asset?
Well, when you invest in something that generates money for you, it is considered to be an Asset. Something that works for you even when you are sleeping and makes Money even without your constant involvement. Something where you don’t need to Rent your Time to Earn Money.
What are the Assets that can be deployed for Work?
Start a Business/Side Hustle
Owning a Business can be a great asset. Though there is a risk involved and you do need to dedicate your Time & Energy to make it work. Yet, after a certain time, when you have a Team and Resources, the Business can work for you and can fetch you an Income even while you’re asleep.
Invest in Stocks
Growing a Business might not be an inclination for all. Yet, it is a sure-shot fact that Businesses rule the Economy, and you can be a part of a business by purchasing their Stocks. Well, here the idea is not to follow Trends but to Invest in a Long-Term Plan. When you vouch for a Trustable and Consistent Business Entity, you are bound to grow along with the Business and the best part is you aren’t even working for it.
Invest in Something that has a High Demand
Investing in something that the World wants is the Best Way you can ensure that your assets are growing in value. Investing in Gold, Silver, Real Estate just to list a few are secured options. You can invest in a property, earn Rental Income for a few years and get a raised valuation when you sell.
Create Intellectual Property
Creating some intellectual property is a great way to earn lifelong revenue in terms of Royalty. You may create Songs, Produce Content, Design, Write a Book, etc. and you can earn an income out of your Intellect.
KEY TO FINANCIAL GROWTH
Set Financial Goals
Most people say they just want to get Rich but they don’t have a concrete goal in mind as to how much wealth they want to acquire and within what time. It is important to have specific Financial Goals aligned with a specific Time Span and then one can proceed to frame a Financial Plan to achieve those goals.
Increase your Income Sources
Your capacity to reduce spending will always be limited but your capacity to Increase your income is unlimited. You don’t just have to depend upon your Job, there are multiple ways you can increase your income. You can start a side hustle, freelancing, take extra projects, invest in assets, etc.
Build more Assets
Focus on building & growing more and more assets. Let your Money work for you & generate more money. Invest in stocks, equity, businesses, real estate, mutual funds, etc. Build a strong Asset Base wisely and systematically.
Discipline your Investments
Start your Investment Journey as early as possible. Take Risks while you are still young. Experiment, Learn & Grow. Yet cultivate an Investing Discipline. Plan and Diversify your Investments and don’t forget that the longer the investment, the higher the Return.
Value your Time
Ultimately, wasted time is wasted money. Your Time is the most important and perishable resource and you need to invest it wisely. Learn where your time goes and how you can productively invest your day’s time to generate a better income.
FINANCIAL MISTAKES TO AVOID
Investing in FOMO
Investment should always be Personal and in sync with your own Financial Goals. Investing in something just because everyone is doing it or some friend asked you to, can be stupidity. You should take Investment as a Long-term Journey and not as a Short-trip.
Avoid Excessive Spending
Understand your Financial Capacity well and do not overspend at any cost. You don’t have to cut down on your needs but you should know the difference between a Need & a Want and strike the Right Balance.
Investing too much into FDs
It’s high time we understand that FD is not the best form of Investment. The Biggest threat is Inflation, basically the decreased purchasing capacity of Money over Time. Of Course, FDs are secured but you should think about constantly growing your Money as its valuation won’t always be the same.
Taking Too Many Loans
When you are young, don’t put yourself in debt. Taking loans can reduce your capacity to think, take risks, and make bolder & better decisions. Loans on your head can get you chasing behind money and trap you into slavery. You don’t want to put yourself in that condition.
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