4 Best Financial Tips To Grow Your Wealth
Investing requires timely advice and guidance if you are planning to accumulate wealth in the long run. Read to know the ways to grow your wealth.
The ever-increasing cost-of-living is posing a great challenge to manage bills, expenses and ultimately, the savings. Nevertheless, investing is an effective means of financially securing your life. Whether it’s investing or savings, there is sufficient information available in the form of internet, family, friends, and financial advisor.
However, the challenge is, how to decide what suits and works in wealth generation?
Here are some of the useful tips to plan your finances and grow wealth accordingly.
Systematic Investment Plan (SIP)
In the investment world, SIP isn’t a new concept. A SIP requires one to invest money in a particular mutual fund either weekly, monthly or quarterly. Investing in SIP has become far more comfortable, easy, and simpler with the introduction of financial apps eliminating the need for advisory and operational services along with their commission.
All an investor needs to do is find a suitable investment app, fill in the necessary details and it’s all ready to go. SIP investing can start from as little as Rs. 500/month.
Tax Savings Amplification
Most of the Indian population comes under the low-income category, but the country still lacks awareness about tax-saving instruments. Working professionals should invest in equity-based tax savings options such as EPF, PPF, and ELSS. These saving modes can provide tax breaks of up to INR 1.5 lakh under Section 80C for salaried individuals.
Buying a term insurance plan or a comprehensive health insurance plan to keep yourself and your family insured against health-related emergencies is also a smart way of saving tax.
New-Age Financing Alternatives
Even though a credit card is popular among Indians, the interest rates tend to be on the higher side. Opting for other digital finance alternatives such as a credit line that provides much better access to flexible borrowing when in need of some extra cash is considered prudent in wealth generation. A feasible solution with instant disbursals with minimal documentation is a credit line from new-age fintech companies. The transaction is 100% digital, requires no collateral or guarantor.
The advantage of such credit options is that you borrow small amounts of money as per your need and pay interest only on the amount that you utilise, instead of the total amount approved for borrowing. Something like invoice discounting is one of the best possible ways to start that does not require any collateral and zero documentation.
Financial Knowledge
Everybody seeks the help of financial experts to assist in money-related decisions, but it is equally necessary to conduct a self-research and get the facts right. For example, before investing in any SIP, gathering all the information about the company’s shares, you are planning to buy is a wise move.
It makes you aware of the general market conditions at the time of investing brings clarity about what your expectations are from that particular financial decision.
Bottomline
Following the above-mentioned tips can act as great investment options for anyone who is planning to turn money into wealth, it is advisable to start making sound financial decisions from an early age, build financial knowledge and eventually reap the benefits of your investments.
