Are you still wondering how you can become a millionaire fast? It may sound impossible to some, but it doesn't have to be an unattainable dream. With adept planning, patience, and smart savings, you could easily make crores by the time you retire. Trust us, it is possible. It only takes thoughtful planning.
One of the first steps can be putting together a budget at the beginning of each month, and inculcating a habit of saving a small part of your salary. If you do this diligently, and consistently every month, you are onto a good start.
Here's a reality check. If you invest an extra Rs. 1000 a week for 40 years, you will end up with an additional 83,50,000.
1. Saving a Little REALLY does Matter!
Even when you are trying hard to save money, you may find yourself falling into the temptation to slack or even spend an extra 1000 here or there. You may convince yourseld saying "It isn't much, so it won’t matter."
But trust us, these small amount will have a huge impact on your savings. Because one of the cornerstones of saving big is understanding the time and value of money. That also means, even saving up a little every month but consistently is the key to making sure your saving efforts are adding up.
2. Optimize Your Spending
Truly wealthy people optimize their spending to the fullest. This means they find good deals - from big purchases to even regular expenses. The trick here is to buikld a habit of researching well and spending wisely.
Unlike most people who spend impulsively and adopt a "whatever" attitude, wealthy people have this default strategy of : Stop, Think and Select to ensure that they maximize their benefits while minimizing their expenses.
3. Another Secret is to Pay Yourself First
What does that mean? Simply put, it's a way of establishing the discipline of investing a certain amount from your paycheck into savings for the future before paying other bills. Most people choose a percentage (say 10& and up) to save and invest each month, and stick to it. This technique has proven time and time again that it can change people's behavior from living paycheck-to-paycheck to one that is more financial secure.
4. Avoid Unnecessary Spending
Identify your needs versus wants, and avoid impulse shopping for things that you don’t need. Put a plan in place scattered across the year to buy your ‘wants.’ Before you swipe your card for that impulse purchase, ask yourself "Do I really need this?" "Don't I already have something similar looking?" "Can it wait another month?"
5. Above All, Take Care of Your Needs and Goals First
This is a rule of life, not just a rule of money. When you board an airplane, remember how flight attendants always give a safety speech reminding you to put on your oxygen mask first before you help others? There's a reason for that. No one can try and help you if you are unconscious.
When building wealth, you need to take care of yourself first. This is easier said than done, especially when it comes to family and loved ones, where one may be tempted to break the rules. But remember, if you want to help others you need to put yourself on solid ground first.
The secret really is to start young, be consistent in saving (whatever amount you decide), and stick to a long-term financial plan. The journey may be slow, but you'll be happiest with the long-term results it offers.
Also read: Budget 2023: What's in for youth