If you want to become rich, then understand these 4 mantras, otherwise you will not even know when inflation will eat up your savings.
If you want to see yourself rich in the future, then the best way is to invest. But in the case of investment, you should know some things well so that no mistake is made.
If you want to see yourself rich in the future, then the best way is to invest. Saving money lying in the bank account for the time of need does not create wealth for your future. If you do not understand this thing in time, then you will not even know when the rapidly increasing inflation will eat up all your savings. Therefore, if you dream of becoming rich, then you should invest your savings in long-term schemes.
For this, investment should be done in such places where the benefit of compounding interest is available and the return is going to beat inflation. The great scientist Albert Einstein said that 'Compounding is the eighth wonder of the world. Those who understand it, earn it, and those who do not understand it, pay it.' But in the case of investment, you should know some things well so that no mistake is made.
Invest 20 percent
Big economists say that whatever you earn, save at least 20 percent of it and invest it in any case. If you earn Rs 10,000, then invest 2,000. After this, as your income increases, keep increasing the investment amount at the rate of 20 percent. The sooner you start investing after understanding this rule of investment, the more money you will save for the future.
Diversify the portfolio
Do not invest your money in only one scheme for investment. According to the time, you should include many types of schemes in your financial portfolio. Choose short-term and long-term investment schemes according to your needs and then invest. If you want, you can also take expert advice in this matter.
Take only as much risk as you can afford
Warren Buffett has said that you should take only as much risk as you can easily afford. So don't do anything by looking at others. In such a situation, you can get into trouble. Save according to your income and invest in different schemes according to your goals. Keep in mind that for long-term investment, it is not necessary to be a very aggressive investor, but disciplined investment is necessary.
Include emergency funds and insurance.
Do not consider emergency funds and insurance as useless. Emergency funds should be equal to your six-month's salary. If you keep an emergency fund with you in advance, then in difficult times you will not have to use the fund being prepare for your future. Apart from this, schemes like health insurance, and life insurance will provide security cover to you and your family.
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