Many of the aspiring youngsters actually wonder what is the secret to becoming rich? Some think let’s start a nice online business or mobile app and wish for it to be an overnight success, few thing that working extra hours and burning yourself out will ultimately give you power and position to command extra income streams, larger projects and will allow you to climb the ladder of the corporate chaos.
However, there is one and only one key common factor to each and every wealthy people that we have met and seen. This secret is so simple and straight that even after knowing about it it becomes difficult to believe that it actually works!!
This single success has been holding true for centuries and those who practice this secret are sure to be rich. The wealthy for some reason know very early that the earlier you apply this formula the faster you will become rich. They ultimately know that becoming rich is not an overnight phenomena its takes years and years to get there. The secret is that you SAVE!. There are many ways to identifying this savings. One perspective is to save whatever is left and invest it. The other is to invest whatever you can maximum and then spend what is left. These are 2 complete different behaviors and approaches.
A typical person (Calling him spender) who will spend first and save later is one who will, immediately put some money on the side for his EMIs (Every monthly installment), then keep money aside for his daily needs and regularly monthly expenses, then plans to invest.
Whereas the other person who saves first and then spends will invest a large chunk of his money in some good compounding stocks or investments which yield good returns. Then he would look at whatever is left and see if he can take a loan, spend on his family and to what extent. This behavioral pattern actually defines the success of the person in the long term.
The reason, I call this a secret is because its deeply rooted in the behavior and DNA of only some people. Lets assume the spender happens to win a huge lottery. Which is equivalent to getting lucky in business or finally striking gold. But because of his natural behavior of spending what he has and leaving something for the future he will ultimately end up being poor. Incidentally very few people understand this and hence there are such few people who are rich and retire rich. Taking Loans for business is business risk but leveraging the personal portfolio is something that cannot be considered a very wise decision.
We want each person who comes to us that that person should retire rich. It is our deep
inner desire that when we advise we make sure the person is on his way to financial independence. We know we will not be 100% successful but our goal is to make sure most people are in line with their financial goals either through stocks,
mutual funds or through well balanced portfolios across asset classes.
Note - The above article is inspired by the bestseller Rich Dad, Poor Dad and few readings/ teachings of legendary investors such as Warren Buffet, Guy Spier, Prof. Sanjay Bakshi and others.
Vatsal shah | Head - Wealth Management
He has been in the field of financial advisory for more than 8 years. His strength is building relationships and providing innovative solutions to investments. His work involves managing the wealth management department for Mutual Funds, IPOs, Bonds and Insurance.
