A lot of us are intimidated by wealth and a lot of us are constantly eluded by the phenomenon of wealth creation. It is important to realize that wealth creation requires a disciplined and sustained effort.
Cultivate the habit of saving.
Saving is the key to creating wealth. Irrespective of how little or how much you earn always try and save a little. Saving is a habit that develops with time and stays with you life-long. Be cognizant of your spending and make a conscious decision to cut down on extravagance/ indulgence.
The first ten years of your adult life can make or break.
Save hard for the first ten years of your professional life. This is the time to gather fuel for the long journey afterwards. Recognize and discern your dreams on time. Build a long term and effective strategy to make your dreams materialize. The first ten years of your adult life is the best time to get your act together.
Think price in the long run.
When you decide to buy a particular product think prudently about long term costs. The cost of maintenance, the time and energy you need to devote maintaining the product is an indispensible price tag that is not always recognizable at the time of buying. Calculate collective expense.
Emphasize quality.
Quality is the hallmark of every successful buy. Always search for quality in every product you bring home. It may seem heavy momentarily but believe me it propitious in the long run. “buy one, buy quality” is the mantra to success.
Need or want? Always differentiate.
Before you buy that one extra pair of shoes take time out to think just a little. Is it a need or a hedonistic indulgence? Buy only things you absolutely need not things that add to your superfluous existence.
Inflow should always exceed outflow.
Never spend more than what you earn. This can prove to be the most impetuous decision of your life. Decadent lives need a suitable income. Thus always equate your lifestyle to your earning potential and never let the expenses exceed.
Never pay interest on products that lose value.
Never invest on products that steadily depreciate. Even more so on products that lose value with age. Paying interest on cars can be a bad idea while interest on real estate can be a marvelous bet.
Need more? Make more.
This is the thumb rule to sustained wealth creation .If you need more money simply go out and make more money. Be on the lookout for an alternative source of income if your expenses have conspicuously shot up or increase your productivity limit relatively.
Measure your risks.
Risk taking is a necessary virtue but learn to be circumspect while taking one. Be realistic and cognizant, weigh all your options with utmost care. Never gamble more than you can afford to loose. Realistic and clear vision is the key.
Identify and prioritize your goals as early as possible.
List your goals in life as early as you can and create an efficient strategy to achieve them .If you are in a position to fulfill any of them today start right away, It will endow you with confidence to fulfill the remaining.
hey desperately needed this piece of advice...
bankrupt now..
can i start afresh???
;)
#2 by Swetha, Jul 16, 2008
i am giving it a thought Sri....
Wish me luck :)
#3 by RD, Jul 17, 2008
Hey Sriju,it's amazing ....must say....U have made it so simple and lucid that anybody can comprehened it....I have been reading your other articles as well and trust me u r doing a phenomenal work.Infact after reading about India,I'am contemplating a trip to Kashmir.....So keep up the good work and looking forward to more stuff from your side....
bankrupt now..
can i start afresh???
;)