Skip to main content

How to become wealthy ?!

 


the real wealth comes in time . generating wealth takes time .

Wealthy , we all wanna become that, right? But are we all ready to give what it takes..? In this article i will tell you secret which know one says!!!
Very few people are ready or willing to do that , that’s why 1 in a million is really wealthy !

If you are an adult and your age is between 17 to 22 then you can consider yourself  in . This age groups people spend more and save none …so the first thing you should do is SAVING ,This will put you one step ahead then majority of people . The second thing you should do is Learn more , enhance your knowledge , talk to more people try to learn from there experiences .A kind suggestion which I would like to give is stay away from girls or do not try to fall in love because in this period you think its love but actually its just attraction and the probability is more that you will fall in love with wrong girl and that will lead you to depression ….                                                                               

  Now lets come back to topic, You should try to find your passion and give your 100% to learn and become expert in that. There has been a research and its called as 10,000 Hours Rule and according to that if you want to become expert in any field then you have to give 10,000 Hours of learning … This is hard but this is what it takes ! Now why am I talking about Passion and becoming expert in field is because if you are an expert then employers will pay you handsomely and If you become expert in any field then you will see things in your field which needs to change and you can start your own business too! Now how to build your empire… for that I have already said that

 Save more and spend less , some people will say “ I have been saving money since I was 25 and still I am not rich ”, They are right but the thing they missed is INVESTMENT , they saved the money but didn’t invest it.

Now you got fund which you should invest in Assets . Now what is asset , An Asset is something which we buy with the hope that it will generate some income and appreciate in value in future. Some examples are Gold , Stock, Real estate etc. I have already assumed that you have taken life insurance . Before investing money make sure you have created an emergency fund to fulfill your 3 months of  your basic necessity.                                

Diversification is needed whenever you are doing investment . Because diversification reduces your risk and actually it divides your risk in different assets.

Now lets divide your 100% of your capital into different assets ,

  •  40% in index fund (15% average return)       
  •   10% in Precious metals ( Gold .
  • 10% in Fixed deposits.
  •  20% in government bonds.
  •  Remaining 20 % save every  month to buy realestate property or land.

If you have some decent knowledge of stock market then you can invest majority portion of your savings in stocks . Stock market is risky but if you are value investing then it is most recommended . Stocks will not make you rich overnight but it will make you wealthy in time , because you are not just buying any asset ,  instead you are buying ownership in company .

Generating wealth takes time , so don’t be greedy and put 100% of your savings in stocks … Be realistic and expect realistic returns .

Labels:

Comments

Post a Comment

Popular posts from this blog

Some lessons to be learned !! by Peter Lynch

Worth to remember !! 1. Never own anything which you don't understand. 2.Logic is the subject which will help you most in picking stocks. 3.Avoid Hot stocks and Whisper stocks. 4.Once you are able to explain the story to a guy who has 0 knowledge of stocks and he understands properly then you have a real grasp of a situation! 5.Try to invest in companies who has a strong balance sheet and less debt. 6.P/E ratio plays vital role... so compare it with the peer companies, the lower the better! 7.Never listen to professionals, kindly do your own research ! 8.Buying a company with mediocre prospects just because the stock is cheap is LOSING Technique. 9.Selling an outstanding Fast grower because it's stock seems slightly overpriced is a LOSING Technique 10.Market declines /Corrections / Recession are the great opportunities to buy great companies at cheap price!
Post a Comment
Read more

How to Create wealth ?!

  I will not waste you time by writing unprodutive things , I'll get direct to point ...There are many secrets of how to become millionaire and one of then is TO CREATE MANY SOURCE OF INCOME !  So the biggest secret to become billionaire is to have passive income . If you see all the millionaires and billionaires have many source of income and they know how to multiple their money ! So creating passive income is first step to become financially independent !! Create many sources of income some examples are as follows. 1.Buy home and give it on rent. 2.Invest in Stocks, bond's !  3.Do freelancing. 4.Buy properties , lands !  5.Invest in gold ! etc. There are many ways of passive income you can google it , the above mentions are common and very easy to apply !  But the most important thing is , You must learn one skill and give your 100% to learn and become best at that skill ! Because if you are not good at that skill then anyone can replace you like its happenin...
Post a Comment
Read more

Are Bonds really safe ?

A bond is an instrument of indebtedness of the bond issuer to the bond holder . The most common type of bonds include government bonds and private company bond .   Bonds are really safe investment then stocks ! Government bonds are alot safe then some companies bond , Issuer issues bond with coleteral which i s very good . Bonds are of many types Fix rate interest bond , Variable interest bond and some more ! Benjamin graham (Guru of warren buffet ) always says, that you have to put 25% of your capital in bonds and remaining 75 in stock . Its like diversifying your portfolio which is good. Spread it as you build it . See if you have 1,00,000 Rs then you should not put 100% of your capital in stocks ... You should divide your capital into some parts like 25% must be invested in bonds (unwritten rule) and 10% in gold and remaining in Stocks i.e. 65% ! There is a saying ‘‘ spread it as you build it ’’ ! So Always divide your capital into many assets !  Some say bond's and debentu...
Post a Comment
Read more