We all are humans and the only thing common among us is to go beyond the level in which we are now. This driving force motivates us to reach the next level. Hence we need to make ourselves financially strong. But it’s not a single day practice; rather you need to abide by some rules which help to make you richer than the present time. So, it’s time to go through the details of the rules.
The most important rule is to calculate your earnings and spend according to that. According to theory you can use 90% of your earnings and need to save the rest 10%. If you have no savings, you need to start from right now for your future days. When you see that it has reached the level, just drop the 10% of that in your pension account or in such account from where you can get money in your old days.
Whatever the types of interest, either simple or compound, you require to start your savings process as quickly as possible. It has seen that we think to start our savings from the age of forty, but if you start that at the age of twenty, you can save more than the double. This savings become useful when you become sixty or more, as the amount becomes larger.
It’s always good to choose an account which helps you to save your money as much as possible from tax. In case of IRAs and 401(k), these types of accounts are not tax free rather they deduct the taxed money at the time of investment, but you become relax as the return is totally tax free. In case of other usual accounts, these make your money tax free at the time of investment, later at the time of withdrawing; the account comes within the purview of tax. Hence, a large amount will be deducted from your return.
In case any monitory incident you need to be informed properly. It’s not at all accepted from you that you are not at all aware regarding your investment scheme. If you remain dumb, you become a loser and may have to suffer for that as you find that the investment has not touched the expected level.
At the time of crashing of the stock market, it has been seen that people get panicked and sell their investments quickly. Many people sell their investments when market is going downwards and hence miss the opportunity of bounce back. Thanks to those persons who were really brave to keep their money in the market; they are now enjoying double or triple times more benefit. So, don’t take any decision in a hurry so that you may lose opportunities in future days.
We all know a very common proverb, “NO Risk, NO Gain”. So, to become rich you have to take risks. There are certain bonds which are risk free and hence you can sleep at night without any kind of tension, but this method always prevents you from becoming richer.
To be a rich person you need to invest your money into real estate and stock market. In the long run these two will provide you the return more than your expectation, though there is lot of chances of crashing in the market. You need to be a positive thinker and be motivated.