11 Real Ways to Grow Financially in Bringing the Future ‘You’ to Bear
Life comes with growth and as we get mature, our quest is to be financially matured as well. It is every human’s dream to live a healthy life and to live it well to the fullest. No doubt that as we are growing, our needs and demands equally grow in tandem with our level so we get to spend a lot on ourselves and on our family.
It is worth noting that creating wealth is more than just earning money. While a good salary makes it easier to abundantly grow one’s resources, it is however, not a guarantee or a requirement for financial security.
In order to maintain real financial progress, it’s necessary to save and ultimately invest your hard-earned money for ripple effect. Growing your money depends on what you want to achieve, how you want to achieve it and what you’re comfortable with.
What rich people have in common is their attitude towards money. Rich people invest with a long term perspective and do not get deterred by the momentary turns and tumbles. Irrespective of your pocket, you can equally develop this attitude to grow financially.
To make this dream a reality, follow the eleven real ways to help you grow financially to bring the future you to bear.
In every step in life determination is the key way to overcome the roller coaster ride of life. If you’re not determined to bring the future ‘you’ that you have been picturing, it will forever be a dream. Be determined to walk that talk to achieve your goals.
2. Save now and be consistent
You must develop a saving attitude by prioritising what you need from what you want. Doing that you will be able to save. It will take time for your money to reach its full potential, but it will surely get there. Due to the power of compound interest by some banks, the money will start growing.
Don’t be deterred if you haven’t got a large sum to start with. Starting small can be effective and help you reap big rewards. The key is to be consistent and regularly contribute to your savings.
Having a significant amount to invest can make a tangible difference to one’s wealth. One can do this only when the person saves up to get there. Once the funds is enough, take advantage of the kind of opportunities that long term investments offer. This can help to achieve long-term financial goals.
3. Choose the right Investment
Once you have enough money to invest and you know what you want to achieve with it, deciding on the vehicle to invest in is critical. Invest smartly by choosing an investment product that is right for your needs, suits your financial and lifestyle situation, and balances your appetite for risk and reward.
It’s necessary not to get enchanted by the blingy investment advertisements. Use your own insight and discretion while making your choice of investment.
Always turn to investments suiting your appetite
Never put your money in investments that you do not understand
Do not invest more than you can put at stake
If you are the kind who wouldn’t want to let the stock market fluctuations eat away your hard earned savings, then you should adopt a conservative mode of investment. On the other hand, if you happen to be a crackerjack in riding the lows and highs of market and making the most of it, then stock market is your thing.
Try to make the best of investments by putting your money in tax saving investments such as National Pension Scheme (NPS), provident fund, ELSS mutual funds and so forth.
4. Get rid of unnecessary fees
An easy way for your money to grow is to reduce or remove the management fees on your investment. With some banks Savings and Investment accounts, you can pay zero management fees when you maintain a minimum balance so that the money you earn stays yours.
5. Say No to Debt
For many people, debt is like marsh. They try to get out of their present debts by taking more debts sinking in the financial troubles deeper and deeper. Eventually it’s the habit that matters. Develop a habit that no matter what, you’ll take no more debt. For most of us, it’s probably the biggest barrier to getting rich.
If you are planning to invest, put two things on priority:
Pay off your debts from the petty credit card due payments to humongous loans.
Vow to develop the habit of not taking the debt until it is way too necessary.
Do not even think of investing until you get that heavy bag of debt off your shoulder. Once you are free of your debt, you should work on piling up liquid cash to suffice for your immediate expenses. Only subsequent to that, you will be up and ready to make an investment. In this way you can grow your money without any debt.
6. Be Consistent in your Investment
A moody person can be a good l0ver but not a good investor. There’s nothing like the vices of over investment and under investment. For most of us it works like this – we get all excited about a particular investment, put our goals and dreams in it and without giving it enough time to grow, pull our hands off it. It is human tendency to start something very aggressively and quitting within a few months, be it taking up exercises, learning a new language or investing. But in case of investments this habit results in a direct loss of money. If you wish to grow your money then you need to avoid such habits.
The reason why money grows by staying consistent towards an investment is the effect known as “rupee cost averaging.” Simply put, it refers to averaging of the short term ups and downs of the market in long term. It is because of rupee cost averaging that consistent investors get to enjoy decent returns in spite of market turbulence.
7. Don’t Put All Your Eggs in One Basket
Never be religious about any specific investment. Rather, be open to a range of investment plans at once. In investment terminology, it is better known as diversification. Simply put, it advices the investor to put his money across diverse options such as real estate, bonds, stocks and commodities. This is one of the best ways to grow your money by thinning out the chances of being at complete loss if one investment turns out to be a failure as you would still have other options to count on.
8. Switch Investments as Your Priority Changes
As one ages, the perspectives and priorities change. A regular guy in his 20s doesn’t even think beyond which tees to wear, which car to drive and how to impress women. These questions however become irrelevant to the guy in his 40s.
Your financial needs change with age and so should your investments. In your younger years in order to grow your money, you can think of putting your money in high-risk-high-return investments but as you grow older, it’s better to adopt a conservative approach and preserve what you have painstakingly earned and gained through your previous years. On a literal note, it means shifting from equity oriented funds to debt oriented funds.
9. Invest Early
Banyan trees don’t grow to their full potential in one day. It takes time. And so is with investments. The sooner you start investing, the more time the investment gets for hatching, and the better become the chances of money growth. In a sense, investing is something that you should always have started a bit earlier to grow your money.
Suppose your financial goal is to retire early at 55 with a fortune to spend on yourself. Let’s go a step further and assume that you fix your target savings at Rs 50 lakh. Now it is obvious to see that you need to shell out a smaller chunk every month if you start investing at the age of 25 rather than 35 to grow your money.
The secret to why does starting early always works lies in the power of compounding. Compounding leads to an exponential growth of your money and its effect increases as the investment tenure increases. The thumb rule is, the earlier you start, the better grows the money.
10. Be Bold and Smart
There’s nothing in this world that comes without a risk. No one learns swimming without stepping into water. So if you want to grow your money and become rich, you have to be bold and smart to conquer all your fears and draw backs by starting investing.
Putting nothing to risk might be like putting everything to risk. Many people think that saving the money is same as investment. It’s not! If you choose to keep your money safe in a savings scheme rather than investing it somewhere, you might end up getting outrun by inflation and losing the value of your money. So be bold and smart to step out from your comfort zone to unleash your full potentials as far as Investment is concerned.
11. Seek Expert Advice
The world of Investment can involve a lot of unknowns, but you don’t have to take on the journey alone. The right guidance and support can help you create the best strategy for your goals and keep you on track for achieving them. Using goal-based financial planning, by some banks, financial advisors will work with you to help make the most of your money, navigate your financial journey and get you closer to your goals.