10 Money Tips for a Rich Future
If you are worried about your Future, follow this 10 Money habits for a Rich Future.
1. It's all about the habits
It's all about habits. No matter how little you're earning initially, make sure that a certain percentage of your income goes into your savings.
Hou much money to save? That's up to you and your expenses. A safe is 30% of your income, but the higher this number, the better.
2. You don't have to be an expert.
Finance can be a very intimidating subject for many of us. But not everyone has to become hardcore finance professional.
Only worry about 3 things:
Am I serious about my "financial habits"?
Is my money growing?
Am I getting advice from the right people? if not, where can I find them?
3. Savings account = Safety, but no growth.
Yes, your money is safe in your savings account.
Yes, it's good to have a "liquid case"(digital money that can be withdrawn by you for your expenses), especially during situations like the coronavirus pandemic
No, this is NOT how you multiply the money
No, this is NOT how you will achieve your financial goals in life.
4. What can I do with my money?
Low risk, low return option: Fixed Deposits, Government Bonds
Medium risk, medium return options: Mutual Funds, Systematic Investment Plans (SIP)
High risk, High returns: Start-Up Investments, Cryptocurrencies, Real Estate.
5. Physical Assets are important.
A very old school, but the important financial strategy.
Invest in something REAL. Even your money is saving
an account is NOT REAL. It isn't in your hands
Suppose there's a worst-case scenario like a Zombie apocalypse tomorrow... and the concept of banks becomes irrelevant... it's your physical assets that will come to your rescue.
From early on, make sure that a portion of your savings is invested in gold or silver. Another useful physical asset that can be purchased (eventually in life) is commercial real estate.
6. Real estate? Really?
Here's what you need to know as a young professional.
Should you aim to buy a house for yourself?
Honestly, it depends on you and your priorities. Are you a nomad who'd want to live all over the world and shift bases regularly? Or are you someone who aims to buy that dream house in the city of your choice? Or do you just not know what you want yet?
Rather than amining to buy a house as your FIRST real estate investments, it's wise to live off rent for a while. Until you know what you want from life. As of now you ONLY know that you want to multiply your money.
Real estate advice from a personal finance perspective:
Aim to invest in commercial real estate: Pieces of property that can eventually be rented out by businesses/banks/offices.
Even though the real estate market has taken a big hit because of the coronavirus situation, it will bounce back. Real estate has stood the test of time, through the course of human existence.
While it may seem like a MASSIVE investment right, now start saving up in the direction. I know countless wealthy families that earn a big chunk of their monthly income from the rent derived from real estate investments of the past.
It's a shaken market. But it's a tried and tested market. Real estate will bounce back. Keep an eye on opportunities.
7. How to divide my money?
Completely up to you. But remember that you'll only be able to take a big financial risk before you get married and settled down.
So, while you're young, play more high risk, high reward games.
At the same time, ensure that you're regularly playing low risk, low return games throughout your life.
8. How can I figure all this?
Later in life, consider working with portfolio management services, wealth managers & financial advisors. The downside is that you need a huge amount of money to begin working with the reputed finance professionals out there.
For now, use your parents' network and your network to learn more about finance. Get good advice from people who've done it before you.
All the above information is taken from @beerbiceps Instagram account
You can check the post by clicking here @beerbiceps
If the above information is useful for you, then click on the heart button on your right-hand side, and don't forget to share so that more people get benefits from it.