How to Create Wealth

2 August 2016 | 1294 Views | By Mint2Save

“Money is sacred. It is not to be taken in a rash manner and needs a wise saving and accounting practice. “

Only a few among us can actually see their money growing towards wealth, while the others keep on circulating it for their lifetime, not accumulating enough and just matching their income with their lifestyle. It is also to be noted that most of us, even though have a common source and similar inflow of money, have unequal financial status. Creating wealth is not an overnight task, it requires a lot of planning, goals, asset creation, investment and tax planning, expense controlling and last but not least, understanding the difference between need and want.

We discuss here six important and interesting areas mastering which can increase your chances of wealth creation.

Keep Inflation as your benchmark: Inflation tests one’s purchasing power when the prices escalate gradually. The amount of money you have in your pocket right now would get you lesser amount of things a year later. This is the impact of inflation.

To grow wealth, you should plan your investments in such a way that they beat inflation marks, hence, create extra money, which, in turn, increases accumulation of wealth.

Be Insured: Being insured not only protects your family from unprecedented money needs, but also takes care of the liabilities that you might leave behind. Insurance is not only related to life only, but you can be well insured for health and medical purposes whose expenses are skyrocketing every day.

Invest Early: When you start investing at an earlier stage of your life, you develop a vision of understanding and can analyze your financial goals. Thanks to the plethora of amazing investment vehicles, the threshold amount to start an investment is extremely low, making it comfortable for anyone to reap better value for his money. Start small, understand the magic of compounding and then plan your investments as per your need.

Less time to Decide and Judge: Keeping yourself in jeopardy to decide over a financial investment is a lot riskier than investing and incurring loss. This does mean that you invest right away without giving any thought, but you must avoid confusion and delay as it would cause commotion and deny you of gaining anything at all. Give a deadline to your decision making ability and reap better results every time.

Create Assets: Asset creation is usually regarded as one of the end stages of establishing wealth creation. However, courtesy to loans and finances, one can build assets at an earlier stage. Investing in gold, buying property have been hot cakes when it comes to creation of assets.

Save Tax: Once you start earning, tax does tend to take up a sizable chunk of your investments and planning your investments in such a manner that you get to save tax. Saving tax is now synonymous with availing an insurance policy and taking a loan to purchase a house. You can even look further for investments that help in saving tax as well as getting you good returns.

How to grow wealth from Mint2Save