🌼4 Personal Finance Secretes of Successful, Wealthy People(VERY INSIGHTFUL)
It’s not all about making loads of money.
Wealth creation is an extremely popular topic of discussion.
In a world where everyone wants to spend their money and has an eagerness to enjoy material possession, some people work day and night to make money.
The goal is not to become a money monger, but you can live a tension-free life if you have enough money in your pocket.
Live below your means for the long haul
I used to buy everything I see in the market. It was funny to buy a bunch of noodles for an entire month.
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Our spending habits define our health.
When I stopped taking sugar, I saw a 10 percent decrease in my grocery shopping.
Further, I started eating healthy, and I saw a significant drop in my budget.
One common thing between living below your means and living a healthy life is that both need less money to maintain.
When I started eating vegetables instead of burgers, I observed an increase in my savings. Similarly, avoiding eating helped me to manage my finances.
Successful people live with the things in which they are comfortable.
If you’re not willing to buy a car, then don’t buy it. People fall prey to their friends and family and take buying decisions to increase their status in society.
In the longer run, this attitude hits them financially.
Avoid new loans and pay high-interest debts
The loan can become a culprit in your life. I saw people take loan after loan, to complete their basic needs like home and car. They repay it for the horizon over 20 to 30 years.
In the current scenario, everyone wants you to take their loans. As a bank officer, We sell loans to customers even when it can cause them financially.
In today’s capitalist society, every company wants to sell its products. Competition between them is at its peak.
If you’re planning to take a loan, don’t pay monthly installments of over 35 percent.
The main reason behind taking huge loans is greed to make more money or a lavish lifestyle.
Avoid taking loans and instead, take a mortgage if your ROI is high. For example, taking a loan for educational purposes is completely fine, as it will make you financially stable.
Invest in low-fee index funds
Believe me, index funds investing is one of the best investing schemes I ever experienced.
Markets are volatile. But the good thing about index investing is it represents the economy of the country.
I live in India. Nifty 50 is the main index here. All markets roam around the nifty 50 indexes.
During the covid-19 period, I heavily invested in the nifty-50 index fund. I got nearly 50 percent return and my capital got almost doubled.
Investing in index funds is easier. It has a low expense ratio, and it is easy to track.
Suppose you know nothing about the stock market. Invest in an index fund, you will beat inflation.
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Invest in yourself
I start my day by reading economic news. It helps me in two ways. It tells me what is happening around me, and it improves my financial awareness.
Making money and saving them is not important. You need to invest them properly so that you can earn a lot of interest on it.
If you will preserve wealth, read something about investing and personal finance.
Your life will go to the next level.
Contributed by Saurabh Adhane
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