How to become rich: 10 tips you should follow from today

National Financial Awareness Day

From 2019, April 25 is being celebrated as National Financial Awareness Day. It was founded by people who know the power of financial freedom and how it can change lives. Therefore, the history of National Financial Awareness Day is relatively short.

Most of you are already working on your finances, although it is not an easy task. At times, you may remain unsure whether you are making the right decisions and choosing the right instruments that can help you achieve your financial goals. So, here are some tips for investors that you should implement from today.

10 tips for investors to get rich

1) If you are an equity investor, do not try to time the market

Market timing is the attempt to predict the future movements of the stock market and make investment decisions based on those predictions. Siddharth Maurya, resource specialist, specializing in real-estate and fund management, said that for equity investors, trying to time the market can be a risky strategy.

Instead of trying to time the market, investors They are better off creating a long-term investment strategy based on your financial goals, risk tolerance and investment horizon, he added.

2) Diversified Portfolio

Consider building a well-diversified portfolio with equities, real estate, gold and silver. The yellow metal acts as a hedge against a standard ‘equity-debt portfolio’ due to its low correlation with equities.

“Keep a long-term investment horizon and avoid making impulsive decisions based on short-term market fluctuations or emotions. It is important to regularly review and rebalance your portfolio based on your investment goals and risk tolerance,” said Siddharth Maurya

3) Liquid Fund for Financial Contingencies

An emergency or contingency fund is an integral part of your overall finances. The purpose of an emergency fund is to provide a strong support for your finances in case of a crisis. It helps you deal with any financial emergencies without disrupting your investments which are mainly earmarked for your long term needs. Every household should have an emergency fund based on monthly essential expenses. Such a fund is extremely useful in case of any health-related contingencies despite being insured.

Liquid funds invest in short-term debt securities such as treasury bills, commercial papers and certificates of deposit. The returns generated by these funds are often higher than traditional savings accounts or fixed deposits. Maurya said that in case of emergency, you can easily withdraw or redeem your investments from liquid funds, and the amount gets credited to your bank account within a few hours.

4) Assured return option in your portfolio

All the investments we make should not be focused only on returns. While the objective of investing in equity should be growth and high returns, fixed income investments should focus on stability, downside protection, safety and liquidity. Invest in fixed income investment options like Public Provident Fund (PPF), Bank Fixed Deposit (FD)senior Citizen Savings Scheme (SCSS)Post Office National Savings Monthly Income Account (POMIS), National Savings Certificate (NSC), Sukanya Samriddhi.

According to Siddharth Maurya, adding assured return options along with other investments in a diversified portfolio can balance risk and returns and help investors achieve their financial goals.

5) Invest in your EPF as much as possible

Employees Provident Fund (EPF) It is a retirement savings program managed by the Government of India. It is an excellent investment opportunity for working individuals as it offers a guaranteed return which is backed by the Government of India. The EPF scheme is managed by the Employees’ Provident Fund Organization (EPFO), a statutory body under the Ministry of Labor and Employment.

Backed by the government and with guaranteed returns, it offers a safe and reliable way to save for retirement. Hence, start investing in your EPF as early as possible to secure your future, said Maurya.

6) Plans for your family when you are not around- Life and Term Insurance

Given the uncertain times we are living in, life insurance and a term life insurance policy is essential for all. It allows you to secure your family’s financial future when you are not around.

“Having adequate life and term insurance is essential to take care of your family’s financial needs in your absence. Discuss with your financial advisor to choose the best policy suitable for your family’s needs,” said Maurya.

Simply redefining your attitude towards money is not enough to change your money habits; You should be prepared to do so, says Vineet Khandare, CEO and founder of MyFundBazaar.

He suggested some ways to achieve financial success.

7) Script Your Own Financial Expenses

Your financial success should equate to your personal success, which requires that you view your financial success the same way you do your life achievements. Detail the factors that influence your financial decisions and the financial lessons you’ve learned so far in your writing. This will make it easier for you to see where you made mistakes and the choices that are still hurting your ability to earn more money, save more money and invest more in the future. To better manage your finances, review your options each day.

8) Carve out your financial identity

By letting your financial actions speak for you, you should equally focus on developing your financial identity. Since not everyone has the natural ability to invest, you can approach a professional to know more about how to invest, where to put your money and how much to invest. Asset allocation is important as it identifies your risk tolerance and the amount of money you want to park for different goals.

9) Motivate yourself to become ‘financially’ independent

If you want to complete the race to financial freedom, you must continue to drive yourself to earn more income consistently. Hold yourself accountable for every dollar you waste. Curse yourself for accumulating undue debt. bear’s remorse market investment, Reward yourself for all the debt you paid off early. Reward yourself when your investments generate substantial returns.

10) Do not be afraid of financial loss

learn something about you finance About which you would not even be aware of your loss. Unwanted triggers can lead you to buy stuff you don’t need to spend money on. However, one setback should not let you lose sight of your objectives.

Being able to save money is nothing less than a blessing. There must be an innate motivation to figure out how to use your financial knowledge in day-to-day life. Check your net worth frequently to determine when you will be free of financial stress. Financial soundness does not require massive wealth accumulation. Financial freedom is evident when you can buy whatever you want and spend time in your hobbies without worrying about running out of money.

These tips will definitely help you plan for the future and become more financially independent.

Disclaimer: The views and recommendations given above are those of individual analysts and not Mint’s. We advise investors to do due diligence with certified experts before making any investment decision.