Want to be rich by next Diwali? Here is how?

A year is a long enough time to become reasonably wealthy.  You only have to follow some basic steps and you will be rich, no complex investment strategies involved. You have to organize your finances with a new and simple strategy which we have presented below.  

Make a good financial plan

This is the first and most important step. Earning a good salary and being rich are two different things; people who have high incomes may or may not be wealthy. Being rich does not only depend on high income, there are several people who have a high income but are still in debt, the best example being late Michael Jackson.

The key to becoming rich lies in one’s own hand. He who has a sound financial strategy in mind and adheres to it has more chances of cashing in. To have an effective financial plan, one must write down his goals and what he wishes to invest or save for. The time horizon of the plan and goal, profits  from the goal and the effect on the other financial plans must be considered. A list of goals you wish to achieve in your life must be made as that would work as your roadmap.

So, the first step is to make a financial plan. Next, include the goals you wish to attain over one year in it, even the ones that have been fulfilled.

Pay off your debts

This is the second step to become wealthy. If you have any debts or loans with high interest rates, your first priority should be to pay off those debts since those are eating away into your funds.

Most people today have credit cards which make it easy for a person to buy things but difficult to pay for it later. There are several ways to spend money and take credit, but you will only have a tension free Diwali and a happy life if that burden of repayment is lightened. To ensure the same, you must pay off your dues as soon as possible.

Start now

This is the last step to getting rich. You must start saving capital and investing it wisely. There are two ways to get rich, either you earn more or you spend less. Keep a check on where you are spending money and whether that expenditure is needed or not. You will have to follow a strategy for the same. Merely saving money will not help you get rich, you will have to put your money to work by way of investments and savings schemes. However, assess your risk appetite and choose investments accordingly.

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