Financial prosperity is desired by everyone and it is generally thought that making good investments is the key but it goes beyond putting capital in different schemes and involves making prudent and wise use of your time and wealth in order to make it grow and can be done by inculcating good money making habits in everyday life. Listed below are five such habits which can be useful for increasing one’s fortunes.
1. Budget Planning
The most important part towards achieving economic success is meticulously charting out your monthly budget by listing your usual needs and planning your expenditure and investment around it. One can devise a formula according to his earnings and requirements around which money can be divided into different parts. The most common is using a 70:30 ratio in which you can use your 70% of your salary for payments and the rest 30% for wealth creation. Allotting a part of this 30% for savings and the other for investment helps you in a systematic fund generation which over a period of time will grow into a considerable amount. One should also keep some of this money for contingencies, which helps in saving by cutting on debt and credit card charges, the usual ways of remittances in such cases.
Sticking to your monthly plan can go a long way in increasing your riches as is not the only allocation of monthly wages for various purposes but it requires a long-term vision too by taking into account your end goals as that helps to prioritize the approach of any individual towards asset building.
2. Savings & Investment
A penny saved is a penny earned goes the old saying and there is no denying the fact this rings true even today as of all habits for financial success, saving is the most crucial one. Making a record of the costs incurred helps in ways of minimizing them and small measures like turning off appliances running needlessly or moving to an economic plan for your phone cuts down on the bills and helps save money. Additional emoluments like bonus or gift should also be put away in a bank account helps in increasing one’s capital.
Assessing plans offered by different ventures and investing in the most suitable of them not only focus on high profits but also on safety and credibility, aids in getting high and regular returns. Tracking the amount put in different schemes like mutual funds and stock markets and checking its worth helps in maximizing its value output as you can change to a better option if found that the current one is not paying good dividends. Expert advice is always helpful, and there should be no hesitation in approaching one for support in matters pertaining to finance.
3. Controlled Spending
Financially successful people know the worth of judicious spending and keep their frivolous expenses to a minimum while enjoying life at the same time. Taking help of automation by allowing electronic methods like Electronic Clearing Services (ECS) and using debit cards to make the most important payments of the month like a utility bill or installments assists in taking care of punctuality issues. This always helps as you are not tempted to make any unnecessary expense as the money has already left your account.
This is the hardest money making a habit to adopt as one has to make changes in lifestyle and manage temptations, but if adopted it can make you a richer person in not much time who can enjoy the good things in life. Not buying that expensive shirt or cutting down on a wasteful habit like smoking may seem like very small amounts saved but when accumulated over a year’s time, they would seem significant in value.
4. Avoidance of Debt
That little credit card in your wallet seems like a very convenient tool but in its name lies the problem. In case of unavailability of sufficient funds, purchasing with borrowed currency requires returning it with some extra amount, and when you are expending more than your available income, then something is not right with your planning as instead of accumulation you are now focussed on debt payments. Steer clear of it at all times unless an emergency occurs and clear any such outstanding issues at the earliest. A simple fact may explain this in a better way- interest being paid if higher than the interest being earned can never improve anyone’s finances. All monetary settlements should be made with the available resources and in case of a loan, careful assessment of interest rates and time period should be made so that the burden is minimized as much as possible.
5. Life Goals
Wealth creation is not the objective but the means to a better life and being clear in mind about one’s own aspirations and aims helps immensely as setting a target drives one to attain it. Drawing schemes for your retirement begin now and keeping in mind one’s own qualities and drawbacks along with sound, strategic money management can help you fulfill your intention even before the expected time. Devoting time and money to improve oneself not only betters career prospects but consequently benefits an individual with a better pay packet. Keeping yourself well-informed, enhancing one’s educational capabilities, developing additional skills mixed with some calculative risk taking will always pay you handsomely.
Making a roadmap taking into consideration the available resources, hard work and looking for expert help on the matter in addition to incorporating the above-mentioned money making habits in a day to day life will undoubtedly help in enhancing any investor’s fortunes and lifestyle. Start working on bettering your economic condition today and be assured that you will reap rich rewards shortly.
George Dille is presently working as a fssai registration consultant at BusinessVenturesIndia Ltd. Being a passionate blogger he is an enthusiast of sharing her innovative thoughts related to Finance tips & tricks. You can follow her company on social media platforms like Twitter, Facebook and Google+