6 Simple Ways to Save Money Better Than You Ever Did
We always ask ourselves a question that how can someone become a billionaire while most people struggle to make ends meet? Well, the answer to this BIG question lies in simple, yet powerful tricks, that can help you save huge chunks of money and catapult your wealth miles ahead!
Here are some of the best advices that we've learned from billionaire entrepreneurs, who've mastered the art of saving and enhancing wealth:
Prepare a Budget and Stick to it – Always!
Budgeting is one of the many important steps that you should take in order to sort your finances properly. If you aren't on a budget yet, or if your current spreadsheet is no more functional, it's time that you work upon creating a comprehensive plan. Don't panic – creating a budget and living accordingly isn't that hard and doesn't mean you have to compromise with your current lifestyle. Prepare a “Spending Plan” in which you prioritise where to spend your money and where not to. Besides giving power and control over your finances, a carefully designed “Spending Plan” will allow you to save for future and help avoiding financial crunch.
Energize Your Savings
Just saving is never enough. One has to constantly look out for avenues to multiply the amount saved. Although there are several investment modes available, mutual funds are the best ways to invest and more importantly, create wealth. With the introduction of online investment facility, it has become more convenient to find out the best mutual funds and harvest enormous wealth. Through the dashboard of the investment portals, you can easily monitor the movements of your funds and can even redeem them as and when suited best to you.
Diversify Your Investment
Unplanned investment is as good as suicide. Regardless of the fact that you choose to invest in top ranked funds, or in a commercial venture, you should always look out for ways to give your funds different flavours of investing. Smart entrepreneurs and investors always opt for diversification and avoid keeping all the eggs in one basket. Investments include risk, but calculated risk is what keeps your investment steady and opens new paths for optimizing your capital. Focus on the process of investing and not merely on the products. It's always recommended to get hold of good financial advisors that can educate you in buying and selling the right investments at the right price and at the right point in time.
Pick Up the Right Advisor
Selection of the best mutual funds that cater to your needs is only half the road travelled. In fact, this part comes later. First, you need to partner up with a reliable and competent financial advisor that can help you cherry-pick that right investment scheme. Though it can be a bit challenging to find such an expert, but remember that it is doable. To find a reputable investment advisor, you can always start with using the online financial portals or informative websites that provide advisory services at very less or no cost. They'll be a great deal in fetching a background information on your investment plans.
Don't Fall into the Scam-Pits
Before you plunge your hard-earned money into market investments, do yourself a favor of sticking to the tried and trusted mutual funds such as the Kotak Select Focus Fund, DSP BlackRock Opportunities Fund, and SBI Magnum Multicap Fund, etc., and do not blindly rely on what funds others are feeding there money into. Be skeptical when choosing any plan that you are looking forward to putting your money in and even have a second opinion on your expert's recommendation. Shield your wealth against getting destroyed by not spilling it on get-rich quick schemes and shams. Remember, there may be a smart way to earn money, but there is no shortcut to it.
If You Can, Generate Two Incomes (or MORE!)
So, we had a great discussion on how you can fuel your wealth by investing in mutual funds and it's great that you have already charted an investment plan. But, genius is about having more than one (or two) sources of income. As said earlier, keeping all the eggs in one basket is bad, likewise relying solely on one source of income is also not appreciable. Find out alternate ways through which you can make good money, be it through investing in a startup or opening your own venture. You can even start by lending your property, say land, for rent or any other commercial venture.
Sometimes, saving money can be quite tough even when you are just getting started. It can be painful to figure out simple ways and employ your savings to reach your financial goals. The best way to save money is to spend it wisely. Curb all those unnecessary expenses which you never actually intended to make and take advantage of investing in the best mutual funds.
- This Independence Day, Let's Pledge for Freedom from Financial Worries4096 min read Aug 14, 2018
- Are Balanced Funds Better Than Balanced Advantage Funds?2984 min read Aug 02, 2018
- 7 Points to Ponder While Investing in Small Cap Funds14413 min read Jul 19, 2018