Wonder if there was a PG Diploma in ‘The Science of Getting Rich’! Or a certification course in ‘Creating Sustainable Wealth’?
There is no need because the rocket science behind getting rich is not rocket science at all!
If there is anything, it is a mix of awareness, discipline and patience.
Today, we will decode the five steps to becoming rich:
Think Rich – It certainly doesn’t mean that you start feeling rich and begin spending on things you can’t afford. Thinking rich means promising yourself that you will take all necessary steps to getting rich. In our last blog, we said you must sort your relationship with money. It is very important to figure out what are your objectives for creating wealth – buying luxuries, securing your and your loved ones’ future or giving back to the society. Whatever may be your reason for accumulating wealth, one thing is clear, you cannot afford to be ignorant about money and its use. So, first, make a promise to yourself that you need to become wealthy by being financially aware and disciplined.
Understand How Money Grows – There is an adage that money attracts money, which can be translated to, ‘more investments means more returns’. So, if you have Rs. 10,000 in your pocket – would you squander it over clothes and shoes or invest it so that it swells your portfolio and gives more money in returns? Once you realise this fundamental nature of money, you are halfway across the road to becoming a millionaire. So, before you spend money, save and invest a fraction of it to keep your portfolio growing.
Become a Smart Spender – Don’t be a cautious spender, be a smart spender – know which expenditures give you the most returns. By suggesting that you may invest more and more money, we don’t mean that you stop spending altogether. It means that you make informed decisions on things that you want to spend your money on. For example, instead of overspending on fancy meals and outings, you could pay for a workshop or a certification course that will add to your quiver of skills and knowledge. More often than not, college students fail to make a rational decision on how to spend their limited cash. Many students have revealed that they missed on good educational opportunities because they were left with no money to spare after binge shopping and other splurges. Don’t be impulsive. People in control of their desires always find themselves prepared to tackle challenges.
Be Disciplined – Being disciplined in your life helps you not only to succeed in your studies and career, but it also enables you to grow rich! When you manage your time well, meticulously plan for future events and prepare for tests, tasks and other challenges well in advance, you invariably plan your finances, too. Ever noticed a friend who always has the money to pay for dance classes as well as for the college picnic – even when s/he gets the same pocket money as you? The verdict is clear; disciplined students have a better handle on their financial position.
Find a Rich Mentor – Interact with your wealthy uncle or aunt or get in touch with a seasoned professional to get tips on creating wealth. In spite of your perception, in most cases, these valuable bits of advice would come at no cost at all! Once you have determined to be rich, changed the way you lead your life and understood the concept of money, simply turn to a wealthy mentor who has walked the road to riches and has a lot of experiences and wisdom to share. Don’t hesitate; everyone likes to have a good disciple who is willing to learn!
Many students, at this point, would ask, “What difference would it make if we saved a little sum after curbing our expenses? A few hundred rupees won’t make us rich, isn’t it?”
Well, as the famous saying by Lao-Tzu goes, ‘A journey of a thousand miles begins with a single step,’ your first tiny steps towards wealth creation would lead you to riches over the course of time. Did you know that you can start investing in mutual funds (through SIPs) with just Rs 500 per month?
With time on your side, you stand to make the most of your little, yet regular investments – thanks to the power of compounding – and create a significant portfolio in next ten years, giving you ample financial freedom to pursue your dreams and passions.
Dr. Celso Fernandes is Goa’s leading financial advisor and a crusader of financial literacy amongst the youth of India. An author and a friend to many happy families who have benefitted from his easy-to-follow financial advisory, Dr. Celso – through his firm, Nave Marg, also drives the ‘Super Young Achievers Club’, guiding students to embrace financial literacy, helping them become millionaires before they turn thirty years of age.
Announcement: Dr. Celso is conducting a free seminar on ‘How to Achieve Financial Freedom’, especially for college students, at the Holy Spirit Parish Hall (2nd Floor) at 11:30 am on 29th April 2018. Students and parents are cordially invited.