Become rich by saving early

Each one of us aspires to become a millionaire. To become so, you must start building wealth early in life. Even if you don’t want to become a millionaire but wish to have sufficient wealth in order to lead a hassle free and relaxed life, then start as early as possible.

Most of us start earning in our 20s. That first pay in hand gives us a marvelous feeling of power, we feel like buying the whole world with it. All our lives we are dependent on our parents financially, but once we start earning, we land up in the biggest dilemma on how to spend the money.

Do we use that power to create wealth for us to use at a later date or do we splurge now. Our decision will decide when and how much wealth we will create. Better option is to save and invest entire earnings. Opposite of that is splurging away the entire pay.

Saving early is the most crucial part if you want to lead your later life with joy. If you want Rs 1 Crore at the age of 60, then saving early will allow you to save lesser amount every month. If you start a bit later, you will have to save more amount every month in order to reach the 1 Crore target. Therefore, start as early as possible or it will come as a burden on you.

Another reason why one must start saving early is because during the early ages of life, there is lesser burden and liabilities on the individual. Once you cross mid to late thirties you will have lots of regular and one time expenses. While earnings go up as you climb the career ladder, expenses also keep catching up.

Lastly, when you start early, you have age on your side and hence you can take higher risk to generate higher returns. Also because there is long working life left, you will get benefit of compounding.

Many of you may be investing for the first time. For first timers and investors who do not have time and skills to manage their own investment, mutual fund is the best investment vehicle. Mutual fund gives benefit of professional management, small investment amount, diversification and ease of operation.

Therefore, if you sow the seeds of wealth at an early age, you will reap a huge tree of wealth later in life.