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Wealth is like chocolate; the more you see it inside your refrigerator or in this case, a savings account, the happier you’ll be. And as you see your money grow with time, you will start feeling more secured and even be able to plan for an early retirement.
To make sure this happens, you ought to know about the tips that can help you reach your goal. Follow them to the T and you won’t have to choose to take out a personal loan at the first sign of an emergency. How do you do it? Here are some incredibly easy and effective tips:
If you’ve money in your savings account, then you better get it moving and invest it in shares or mutual funds. When your money earns you profits, reinvest it. Doing so will build your wealth and let you beat inflation as compared to the savings interest rates.
Yes, this might sound antithetical advice but it’s true. Pay your bills, do your recharges, and buy your groceries using your credit cards - you will earn cashback and discounts. Pay your bill on time. Keep doing this and you will not only save money but see an improved credit score.
This might sound like a simple tip but it’s the most important one when it comes to keeping your wealth healthy and intact. If you do not know where your money is going - be it household expenses, eating or shopping, or even investments, you won’t be able to plan better and will ultimately end up losing more money than you can afford to. Download a money tracking app, there are several available online, sync your online savings account to it, and see it ping each time money is credited or debited from your account.
One of the worst habits when it comes to wealth management is missed bill payments. Each time you miss a due date, you not only have to bear the burden of late fees or fines but in worst cases like insurance, see your policy expire or get a dent on your credit score for missing a personal loan equated monthly instalment (EMI). Ask your bank to automate your payments. Each time, you receive the bill, the money will be automatically debited from your savings account and you don’t have to worry about missed due dates.
An emergency fund is your secret weapon against unexpected financial setbacks - job loss, salary cuts, inability to work, etc. Take six months’ worth of your last drawn salary and put it in a separate savings account that you can access with ease. When the time comes, you’ll thank your stars for having saved your money in this emergency fund.
Wealth creation is nothing but a set of simple tips you perform daily. Turn them into a habit and soon your bank account will look pretty big with a lot of zeros.
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