7 Tips for Building Wealth

Taking reference from the book The Richest Man in Babylon sharing the below 7 points which will help you improve your financial well being:

  • Save 10% every month – You can still get along well with 90% of your income.
  • Control your expenses – Sometimes there is very thin line between need and desire (that is why it is called as burning desires). But think practically that if you don’t control your expenses and increase your savings. The simple example here is that when on trip to mountain top, we will carry only essential things which will help us along the way (for survival) and not take non-essential elements. Budget as such that you are at least able to save 10% per month of whatever your income is.
  • Multiply your money through investments – Fair, sensible and according to one’s risk appetite and knowledge of that investment instrument (tool). Some have a good understanding of stocks some other people would have good understanding of Real Estate or other financial instruments. Wealth is not the money that we have but the never ending ever growing income streams that we build.
  • Guard Wealth from loss – A simple suggestion here would be to take care of Risk, Reward, Taxation and Liquidity factor of each investment. The number one factor to look out would be to protect the principal amount.  Get the advice from rightly competent people to consider the Risk and Reward of the investment.
  • Own your home – Invest early to have your own home. Home is where the heart is, where children grow and build their memories. The importance of having own home cannot be undermined.
  • Insure a future income – Plan your retirement from the day you start earning. You will inevitably grow old and may not be able to work one day. From that day onwards you can have an income to fall back upon to live the rest of life peacefully. Provide in advance for the needs of your growing age and the protection of your family.
  • Increase your earning ability – Put efforts to enhance your craft and learn new skills This will help you add and offer more value to your customers and in return get more value (money) for your efforts put. Once you UP your level, not only your income increases but the satisfaction that you derive from your work also increases.

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