Avoid 5 Most common money mistakes to create wealth
Avoid 5 most common money mistakes to create wealth. 5 most common money mistakes to be avoided to create wealth are :
1. Don’t take loans and pay EMIs :
Don’t take loans for something which you can’t afford today. Rather save that money, generate superior returns and buy it in future when you are ready to afford it.
Loans eat away your savings and have negative impact on wealth creation in the long term.
2. Don’t keep money idle in savings accounts :
Keeping money in savings account does not create wealth and provides very low returns.
Rather take some time out and invest in Fixed deposits, Recurring deposits and Public provident funds to get at least average returns. Invest in Mutual funds with good performance record
3. Don’t buy insurances which are not required :
As you get employed, agents will run behind you to take insurance.
They will try to instil fear in your mind and take advantage out of it.
Don’t fall into this trap.
Take insurance if you really need it or don’t take of high value.
You benefit from insurance only in case you claim it.
If no claim, total value at the end will not yield much returns
4. Don’t invest without proper knowledge :
With proper knowledge, understanding, mindset and stomach for risk, one of the fastest ways to earn money is stock market and without these qualities one of the fastest ways to lose money is also stock market.
It takes time to build adequate knowledge and experience
Invest in stock market only if you have proper knowledge, financial understanding. stomach and resilience to handle risks and money losses
5. Don’t spend in luxurious items :
Luxurious items can wait till you get rich.
Rather buy value for money products and save money for future.
You can spend on luxurious items once this saved money has generated sufficient wealth
Rich people are not those who earn the most but one who knows how to invest money to generate superior returns.
Richest people go bankrupt when they lack financial knowledge and money skills.
Spend some time to learn money management. Effort will be worth much more than the returns
Lastly and most importantly, It is your hard-earned money.
Learn to save it, invest it and create wealth for your future
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Anupam shares inspiring thoughts, positive ideas and personal stories based upon practical experiences to LIVE POSITIVE LIFE. He writes on Inspiration, Leadership, Productivity, Work, Spirituality and Relationships. All personal incidents and events mentioned in Blog are real and have actually happened. Anupam is Supply Chain Leader with rich experience in world leading organizations. Author views are personal.