The wealth-generation is a process to know where & how to invest money in the investment avenue investing money strategically by implementing tips for investing to beat the inflation & generate the wealth which should help you in the time of emergency & also takes care of your goals of asset building & major expenditure such as four wheeler, home, marriages, children studies for school & colleges also for post-retirement expenses thus you achieve the wealth-generation. You can get more guidance on financial management concept and wealth generation tips from the “77 tips for your wealth generation” book.
Wealth Generation Process:
Budgeting & saving
Planning short term goals
Planning Medium term goals
Planning long term goals
Budgeting & Saving:
wealth-generation is also the process of reconciling once income with once expense, take note of how much you spend on each item. This can be done with ease by data feed of your income & expenses in excel sheet to retrieve the data at your will, after 3 to 6 months time you have gathered enough data also to sort into segment as essential, discretionary and entertainment. The tracking of a budget is essential to identify essential & discretionary spends also ensure not to overspend it. once you identified your outgoing amount, try to put at least 15-25% for saving. If you don’t know where to invest put it in saving account which will fetch you 5-6% return, it’s very important your money start working for you no matter how small it may be, the earlier you start it’s better because of the power of compounding.
Once you started savings and investment you will get enough money to purchase a car around 2 to 5 years down the line. People tend to save aggressively or invest with extreme vigor blindly which will jeopardize their goals, This is a mistake most people will do irrespective of fields or demography. You write down your wealth generation goals into 3 categories short-term, medium-term and long-term. List down each goal and years to achieve it which enables you to determine how much & how long you need to invest. While calculating the goals take into account inflation, the car that cost Rs. 7.5 lakhs today would not be same after 5 years taking inflation into account 8% it will be costing Rs.11,02,000/-. in the similar context, the post-tax returns of 8.0% FD may not be able to beat the inflation in the long run.
Where and how to Invest:
Buy “77 tips for your wealth generation” book, dilemma people face today is where & how to invest their surplus money / saved money. Once you have set the short term, medium term & long term goals you can plan converting the saving or surplus into investments, the investment instrument to be selected will be based on the set goals and number of years available also your risk appetite in reaching the goals your age also factors, the older you are, the investment should be more in bank deposit, liquid funds, debt , bond less on equity shares or mutual funds the younger you invest more in equity, mutual fund & less on bank deposit, bonds, debt funds because since the funds are required in the short term the bank deposit, bonds, debt instruments secures the capital, whereas the shares outsmart all other investment for the long term investment plan due to high volatility. Do get complete guidance on the financial concept and wealth generation tips from the “77 tips for your wealth generation” book Shop Now