Is there anyone who doesn’t dream of being a crorepati? Absolutely not! Everyone wants to become a crorepati, or multi-millionaire. It may sound nearly impossible to salaried employees and other individuals, but gone are the days when becoming a crorepati seemed to be an impossible task.
Earlier, investments were limited to just financial experts. However, with the advent of digital platforms and smartphones, diversified investment plans have come up, which offer an opportunity to individuals to achieve their financial goal. The corpus of Rs 1 crore can be achieved with meticulous investment planning.
If the investment is smartly planned, cutting on the unwanted expenses, everyone could make this dream of becoming crorepati true. Apart from a smart investment strategy there are a few other factors which should be taken into account in your financial journey to achieve your dream goal of Rs 1 crore.
So, let’s delve into the 5 tips that can help you become a crorepati:
1. Investment is the key
The first and foremost way to become a crorepati is to invest, which requires smart decisions at the right time. One should always seek advice from an expert and know what is the right strategy as per their financial goals and risk appetite before investing. The power of compounding interest can take an individual mile ahead in a quick succession.
2. Diversification is important
Every rich individual would agree to the fact of investing in a diversified manner. Diversification is equally an important aspect of investing that gives you exposure to many options such as real estate, stock markets, mutual funds, commodities like gold and silver as well as alternative investments like government schemes, bonds, etc.
By spreading investments across different instruments, investors can potentially minimise the risks of any single instrument’s poor performance at any point in time.
3. Plan a 50-30-20 Budget rule
Planning budget is a smart way to progress in a longer time that ensures you move smartly as per plans and no unwanted spending. As per experts, this personal finance rule says that individuals should divide their budget into 50-30-20 categories. 50 per cent should be allocated for spending on needs, 30 percent should be spent on wants, and 20 per cent on savings.
4. Have covers for emergencies
Anyone can face emergency situations or unexpected events in life. These could range from a health emergency to a heavy financial loss. So, it is quite important to have insurance plans to safeguard your assets and life against such situations. Your investment plan should also include health insurance, term insurance and life insurance plans.
5. Stop spending on unnecessary luxurious items
Many middle-class individuals have the habit of buying luxurious goods like costly accessories, out-of-budget homes, luxurious cars, and gadgets to live life to the fullest. However, expenses on such items often lead to extra financial burden. The worst part of these expenses is the never-ending EMIs, loans and credit card bills. But, one must have patience and look for budget-friendly cars, mobiles, or accessories that can help you save some money for the future.
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