Investment And Wealth Creation Tips for Beginners

Investment And Wealth Creation Tips for Beginners

Below are my life learning -
(1) Save before spending: Every time you get a paycheque you should save at least 20% of your income. And increase saving with an increase in your income. 

Please check out my detailed article for Best Money Saving Tips

(2) Learn share Trading: You should have Demat and trading account. Share investment is a very easy way to start your second source of income.

(3) List down your life's financial goals as early as possible:
1. What do you want?
2 When do you want?
3 How much money will it require?

Calculate how much money you need to save per month to achieve that goal. (Www.sipcalculator.in)
For example, I want to have 1cr RS on my retirement. So if my age is 35 then I need to save 3050rs every month considering a 15% rate of interest till the next 25 yrs. I need to start SIP if I am expecting this much return.

Please check out my detailed article on Financial Goal Planning

(4) Learn to save tax:
(A) If you do not have your own home and want to save tax then you can take a home loan. If your salary is less start with a small apartment. Later if you want to buy a bigger home you can sell it.
(B) Take Term insurance. No money-back insurance schemes.
(C) Take family health insurance plans if your employer does not provide any.
(D) start SIP.
(E) PPF and NPS are also a good option but I prefer to SIP.

(5) Learn SIP (Systematic Investment Plan) for wealth creation:

Large-cap funds => less risk => less returns
Mid/Multi cap funds => medium risk => better returns than large-cap funds
Small-cap funds => high risk => high returns

(6) No Investment in Precious Metal: Do not buy physical gold/silver. Specifically, do not buy jewelry for investment. It's a dead investment. The annualized return is not good.

(7) Keep track of your expense: If you can't measure your expenses then you can't make your saving decisions right. There are so many mobile applications that are there to make this task simple. "Expense Manager" is the best application.

Benefits-
(A) You can predict the upcoming expenses.
(B) You can understand your spending areas and can correct them whenever needed.
(C) You will know when extra money needs to be invested.

Additional Important points:
(1) Add nomination on every investment/account. Make your Nomini aware of your investment.
(2) Create an IT file with all details so that in case of your death, your depends will not have much trouble.

Please comment below - what is your idea for wealth creation?