Top Rules to become Rich Early in 30 years of age
Rule No 1- Documenting Your Expenditure
If someone earning in lakhs it doesn’t means he/she is rich. However someone earning less than lakhs and having planning expenditure can be rich early. Like the story of rabbit and turtle. Slow and steady can make you success. If we earn 20k per month we know where the amount is going to spend in that month. Like food, home rent/ flat EMI, or maintenance, education of child, medicines, fuel or travelling cost these are the most basic expenditure. Apart from that we have another expenditure list like occasion, festival, relatives, friends, clothes and miscellaneous. In this regard we should make a list of our monthly expenditure. Then only we can have an exact amount what really we need in a month. Other expenditure is like occasional. Then we can save from that.
Rule No 2- Saving and Investment:
Saving is the first then expenditure. But what we did we first spend then what remaining we save from that. People believe in the rule of 50-30-20. Like 50% for basic needs, 30 for other expenditure and remaining 20% for saving. However I belive in the no but in a oppostive direction. Like 20-30-50. First save 20% anyhow. Then your expenditure. We can not cut from the basic but we can adjust from the middle point. Save money for each requirement. Like in next 10/15 year your children higher education, marriage, car or home. Then there should be segregation of your saving like emergency fund, life insurance, health insurance, insurance for car and all. Cash fund should be available to avoid any critical situation. So that you can save yourself from loan and its high interest. Investment is must to grow your money. What you save should be in 2 parts. One in purely RD, Fixed deposits, PPF, LIC, SSY, and other government saving schemes and one part in SIP, Mutual fund, Stocks.
Rule No 3- EMI Trap-
Keep away yourself from EMI Trap. If you need something urgent then its your requirement which you know before like bike, car, laptop, mobile phones, home or anything else. So before the time arrive you know there is sometime which is the golden period. At that time you save as much as you can. Like after doing the EMI option you arrange the monthly instalment as soon as possible. Simmilarly do that also before you do the EMI. In that’s way you can save yourself from EMI trapping. If it really need in urgent then you can go for it. Otherwise you think yes it just monthly 5k-10k I can afford it. But in that way you never think of saving or investing that money. So convert your thought process.
Rule No-4 Time Management and Discipline Lifestyle
Time management and disciplinary lifestyle is the most important attitude which can make you richer in your life. Make yourself to utilize your time not spending it. When you started utilizing your money then you can make money from money. Discipline way to create money is most important.
Rule No 5- Buy what you need not what you want
Human wants are unlimited. Sometimes we buy unnecessary items. Even there is no use of it or vvery less use. In this regard we need to think what should we do for it. So think twice before you buy things. Now a days online shopping is available in every doorstep. So we unnecessarily buy things, which cost more. Discount and offer selling is also a trapping here. There is no easy way to be success in one night rather many sleepless nights, tired days, hardwork, consistency and focused intervention can lead to become rich.
Concluding we need to think about our financial independence and security in this regard. Here we need to save more for our future expenses.
Become rich in early 30 years age is difficult but not impossible. The No “30” may be 40 but you have the goal to be financial independent and rich. So Start early saving. When you get job at 28/30 then how can you become rich at the same age. It is just a day dream, not possible at all. So the person who earn early can also save early. In this way if you dream to be rich start earning early. How its possible, if you focus on your study or business, whatever you want to do. So first focus on your income capacity. Then start exploring healthy way to add your income sources. Start investing early. Apart from job you can do anything new with your skill and resources.
To become rich is not a deitination rather its a journey with same more high passion, more hardwork, more effort, more time and everthing more what you put at the starting of your journey. It is a journey of life. Its not end at a point you reach. To become rich may be difficult but to be rich is highly challenging. There are always competition and many will be in the line to take your place. Therefore, be patient, be discipline what you are doing .
Where to invest:
Invest in safe side forst then in risk field like SIPs, Stocks and mutual funds. First do a health insurance for yourself and for family members who financially depend upon you. One life insurance and term plan for your near one. Then your dependant life is safe for a certain period if something happen to the bread earner. Them you can focus on investment in multiple basket. Why multiple basket because market is volatile in nature. If you put your money in one place then no one know what happen with it particularly in small cap fund. So divide your money in different parts.
Your investment journey is depend upon your income. Dont follow blindly to someone’s investment pattern, rather do compile anddesign your own. Follow others but do your own. Create your profile according to your income level. Because you know and understand your income, expenditure, need, emergency, future expenditure etc. So assembly your investment machine by your own. Do not wait start from now itself.