WHY I AM NOT BECOMING RICH ?

Most people think that they are working hard and earning handsome money even though they are not becoming wealthy people. I found a few reasons to not become rich. They are...

1) No Financial Plan:

People don't aware of why they need to save money, they don't know their financial goals. The financial goals like Children's higher education, Buying a dream house, Generating a retirement fund, Needing an Emergency fund, Marriage expenses, Starting a new business, Buying a car, Medical expenses, etc. To fulfill these goals we need a financial plan.

2)Buy more Insurance policies than investment:

Very few people can understand the difference between term plans and endowment Insurance policies. If your family members are dependent on your income only, then you must take one term plan. Then think about Health insurance policies and emergency funds for embarrassing situations.
Now plan for the investment in stocks and mutual funds for creating wealth over a long period with the help of your financial advisor who is qualified. Don't depend on market tips, do your own analysis also and try to understand the economic conditions by reading business news.

3) Lack of disciplined investment:

 In the monthly budget plan, first,, we spend money lavishly and then think about investments. But to become rich we must keep some money aside for investment, then the leftover money should be spent for monthly expenses.

4) Lack of patience:

People don't have the patience to grow their money, they want immediate results. Because of this greediness,  many are losing their hard-earned money. Understand the functionality of the stock market, there is volatility in the stocks, and don't get panic if it goes down. For this reason, we have to choose fundamentally strong stocks and good mutual fund schemes to invest in.

5) No idea about the power of compounding: 

Those who can understand the power of compound interest in mutual fund schemes save and invest early, without postponing. Few people save money and deposit in banks or post offices for a lesser rate of interest. This kind of situation happens lack of knowledge about stocks, mutual funds, and other investment opportunities. And these people are extremely conservative about their investments.

6) Buying excessive gold and keeping it in a locker: 

Some of people buy more gold than required and keep it in lockers by paying rent annually. we need to compare different asset classes before investing, which is giving more return with safe in the long term.

and also read

How to become a crore man?

https://mymutualfunds99.blogspot.com/2019/08/how-to-become-crore-man.html



What do you feel about this article, please comment below and share with others...