You might be already aware that execution of well laid out plans over a period of time is necessary for building wealth. Here are some tips beyond the usual rhetoric about long term investing and SIPs.
1. Invest smart
Work hard, party harder but invest smart. This is got to be your mantra if you want to be rich in 10-15 years from now. For instance, consider saving a part of your salary in a Flexi Deposit account offered by your bank.
A Flexi Deposit Account gives you multiple benefits: liquidity of a savings account and rate of interest of a Fixed Deposit. You can withdraw money from this account as and when you want and still get a proportionate interest on your deposit. Check with your bank about this option and sign-up for it if it is available.
2. Avoid overspending on insurance
Every other insurance agent seems to be selling the best insurance policy. But whether each one of them is good enough for you is the question. Insurance agents earn a commission for every policy they sell. Who gets the benefit if you purchase every other policy? They, not you.
Resist their sweet-talk and aggressive marketing tactics. Understand salient features of the policy being offered and take a decision accordingly. A simple term plan and a critical illness policy will be sufficient for meeting your insurance targets. Make your policy work for you, not for your insurance agent.
3. Plan well
Planning your life, but not your finances? Well, you need to plan your finances just like you chart out other important activities in life. For instance, spare some thoughts for requisite finances for education of your kids, their marriage and your own retirement.
4. Spend wisely
Spend wisely and keep an eye on the future even when you are spending a single penny. Every single buck that you use for smart investment helps in building your future. Consider taking a loan for building an asset that will appreciate with time. Talk to your financial planner before you take any decision in this regard.
By following above tips you can beat inflation, secure your future and that of your kids. More such useful information for our readers in future. Till then, stay tuned and stay invested!