Everyone wants to become rich, but there are a few privileged ones who become rich.
Ever wondered why?
In each instance, there are common elements that either helps them to grow their wealth or prevent them from getting rich. Not necessarily being rich always means having money, however, 90% of the times it does. There are certain habits, behaviours, and rules that will help you to get rich and multiply your wealth.
Over the two decades, I’ve given a lot of thought to what it takes to get rich and grow wealth. I’ve met and discussed with countless people. I’ve analysed their lifestyle, their saving and investment habits, and their work pattern amongst others. One thing common amongst them was they had a passion to become rich, they had a vision, a goal for wealth creation.
In the span of my career, I've helped over 200+ individuals to manage and multiple their wealth by the means of goal-based investments. By helping them build a firewall for their investments. By enabling them to enjoy their used-to lifestyle even after retirement or under all circ*mstances.
If you think wealth creation is an overnight process, let me correct you. It isn’t! There aren't any instant get rich schemes here.
Below are my ten rules for getting rich and multiplying wealth, over time.
RULE #1 –YOU HAVE TO EARNIT OVER TIME
If you want to get rich you need to grow wealth, it’s not an instant or easy process, you have to earn it with patience.
If you want money get to work and start making it. Set your goals, define your vision, draw the map of your life.
The bottom line is if you want to grow wealth you need to earn money. That’s the 1st Rule of wealth creation.
So, stop with the excuses and focus on it. Get started!
RULE #2 – SAVE UNTIL IT PINCHES
Yes! That’s rule #2 - to get rich you need to save. Earning money is not just enough – you need to save your money as well. Otherwise, you'll end up like one of those famous celebrities who've gone bankrupt.
Hence, the principle to get rich is saving until it pinches. How much is that? Well, if not pinching yet, it's not enough. And experts recommend one must invest 50-60% of their earnings.
RULE #3 – SPEND THOUGHTFULLY!
To multiply your wealth it is essential for you to optimize your spending habits. Sitting here, I cannot judge your spending. Hence, you are your best judge. But one of the basic fundamentals of investments is – first save and then spend, moreover, save more and spend less.
My personal belief is you should buy what’s essential; eliminate what’s the inessential. Optimize your spending.
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The concept here is to simply spend thoughtfully, especially the big expenses. Too many people here buy things impulsively. They don't think about what the choices really are or whether they really need to buy it. Wealthy people do it differently. They think before making a purchase. They maximize their benefits and minimize their expenses.
RULE #4 – PUT YOUR MONEY TO WORK
“If you don’t find a way to make money work while you sleep, you work till you die” says Warren Buffett.
That’s Rule #4 – Put your money to work. Experience the power of compounding. I always ask my client, in my first meeting, to calculate the expenses of their used-to-life.
Identify the important junctions of your life. Create a budget. Set your financial goals. Diversify your portfolio.
RULE #5 – MARRY SMART
Marry smart. Why? Because a great spouse can be an encourager and a supporter when it comes to building wealth.
On building wealth, a great duo can earn together, amass together, and watch their money compound over time.
RULE #6 – INVEST IN A WAY THAT MINIMIZES YOUR TAXES
One of the best ways to get rich is to minimize your tax liability. No matter how much you earn, you always need to think about how can you minimize your taxes if you don't want to give up your wealth to the government.
There are many investment plans available with tax benefits, you can select the ones that fits your goals and purpose to minimize your taxes.
RULE #7 – PROTECT YOURSELF & YOUR FAMILY WITH INSURANCE
Insurance offers protection of income. These products protect our earning capacity. These products include - Life Insurance, Critical Illness Insurance and Disability Insurance.
It ensures safety of the money saved for future. These products serve to provide holding capacity during turbulent times. These products are also meant to be en-cashed at a short notice.
RULE #8 – STAY HEALTHY. STAY WEALTHY.
The eighth rule of building wealth is to take care of your health first. This isn't as much of a money multiplier rule as a life rule.
As a wealth multiplier, I always recommend my clients to consider themselves as the trustees of their family. And when it comes to build wealth for your loved ones, to protect them financially, you have to take care of your health at the very first instance – even when dealing with family. This can be really hard for some people.
Put yourself on solid ground first.
RULE #9 – DIVERSIFY YOUR PORTFOLIO
The ninth rule to get rich is diversify your portfolio.Having a diversified portfolio is crucial for any long-term investment strategy. Diversification helps to reduce the risk of your investment and hence helps you to achieve more consistent returns over time.
RULE #10 – GO STEADY. GO SLOW. REACH SAFE.
In any investment there are 3 dimensions –
·Safety
·Liquidity
·Yield
Many times people want an investments, which is rock solid safe like a government-backed security. At the same time they want 100% liquid like cash on hand with assets that provide 40% yield year on year.
Let me tell you there is no such investment and no such investment can ever be done in future too.
