Around 61% people around the world live paycheck to paycheck according to a survey conducted by CNBC, making financial stability a big question. There are a lot of people who have absolutely no idea how are they going to fund their retirement years. Almost 7 out of 10 salaried people in India expect their children to take care of them during their retirement years. But the saddening fact is that, the children do not think the same way.
With increasing inflation and demanding lifestyle, there is very less scope for saving from your limited paycheck. But simultaneously it becomes very important to do so. The relief is, there are several ways which can help you create the wealth you need and deserve.
Here are three steps which will help you build wealth as you earn your paycheck;
- First installment- SELF INSTALLMENT
The moment our salary gets credited in our bank accounts, we have a list ready for people and places who need to be paid. Credit card bills, telephone bills, rent, car EMI, house EMI, paying the maid, taxes, etc but seldom do we pay ourselves.
This is the best practice you can ever adopt in your lifetime and the sooner you do so, the better and more rewarding it is. This simply means taking your portion out before everyone else gets paid from your salary.
Start with a minimum 10% of your salary in terms of percentage or if you want to make it more personal, gift yourself your own time. As they say, time is money, that is the best gift you can give yourself. Of the 24 hours in a day, a minimum one hour is the best reward you can wrap for yourself.
- Use technology to aid your savings- AUTOMATION
Automating your savings is the next step towards building your wealth. If you automate the savings that means even before you have money for spending at hand, your savings will be deducted from your paycheck and sent straight to the destination where it is supposed to grow. You won’t spend it if you don’t see it.
Also, automating the savings deduction will keep you free of the monthly burden of reducing your spending capacity, at least seemingly. Hence you won’t be lured into missing out the deduction for this month and so many such months to come. Staying focused on your ultimate goal of building wealth is very important and you need to recall it every time you spend unnecessarily. Bring technology to your best use in becoming rich, richer, richest.
- Put your money to work- INVEST
Honestly, just saving money won’t make things any better as they are now. It is like keeping the seed of a plant in a packet and not sowing it so that a plant or tree grows. You have to put your money to work along with you so that you mutually build wealth. Putting your money into a savings account with a 4-6% interest rate or fixed deposits with 5-8% interest rate will not do much in creating a wealth that improves your lifestyle and helps you realize your dreams.
There are a lot of options available in the market like retirement plans, tax-savings plans, short-term investments, long-term investments, all these options allow you to invest and save your money for the desired goal while it grows significantly. Who does not know Warren Buffett, he has always recommended saving in low-cost Index Funds.
If you are not sure of how to or where to invest, seek help from the experts. We at Piggy Premier have the best in industry experts to guide you through the process and manage your funds.
It does not matter how you opt for investments; the important thing is to start doing it right away and sticking to it. Consistency and determination are the back-bone to successful investments and savings. every day counts, so the sooner you start, the better it is for you as compounding will get into action once you feed it the money. Let the money snowball effect work for you and make you build the wealth you have always dreamt of.
Start Investing, Smart Investing!