If you born poor, that’s not your fault
If you die poor, that is your fault

But you can only say these lines after you are wealthy already, Lets understand some basic financial habits that can make you wealthy.

Being wealthy is also an attitude and great habits can help you become wealthy.
In this article, you will see how some simple yet razor-sharp financial habits can potentially make you wealthy.

Let’s Begin 1 by 1. If you are not serious about making money stop reading…

Investing: An attitude

Investing your hard-earned money or in other words putting your money to work is an attitude, it’s a mindset. Stop telling your self that I don’t know how to invest or I don’t know where to start. Where there is a will there is away.

Investing your surplus money, looking for options to put your money is a compulsion. we haven’t been taught in school however people who just keep their money sleeping in their savings bank account won’t probably be wealthy (unless the money sleeping in your bank account is in 10-15 digits or you win a lottery).

Sources of Income

If you want to become rich and wealthy, you constantly have to think of generating a passive income. This might sound cliche, but it is possible.

Only one source of income might not suffice if you live in a metro like Mumbai or Delhi.

Look for things you can do on weekends or online with minimal investment. You can start with even trying to make extra INR 5,000 a month.

Write blogs for people, Freelancing, Consulting anything that is your skillset.

Remember its not about the money first, it’s about attitude, it’s about you willing to take the first step. Once you taste blood, it will get easier to increase this INR 5,000 extra to INR 50,000 a month.

If your single source of income is substantially large, then you might choose to relax on weekends otherwise join the “Lil Extra” club.

Spending habits

Spending habits are the biggest impact creator in this checklist. Spending habits can change and turnaround your financial health.

It’s simple –> Divide your expenses into following categories

Type 1
If I don’t buy this I won’t live expenses

Type 2
If I don’t buy this I probably would have to face a little discomfort but I won’t die either.

Type 3
If I don’t buy this I will face social embarrassment or won’t look cool & If I don’t buy this my life won’t change that much

Type 1 expenses you cannot avoid, from the Type 2 expenses carefully choose between options.

Type 3 just break up with them don’t bother the world, just blindly delay these kinds of expenses.

The Gujrati fathers teach their sons and daughters a traditional 3 30 rule. 3 30 rule is

3 years of hard work and compromising expenses will give 30 years of party life.

3 years of party life gives 30 years of compromising and hardships.

I rest my case here. if this looks difficult to you, surround your self with Gujju friends.

Spending vs Savings

I am going to jump straight to the point here -> Understand the difference between spending and saving.

People often follow spend and save remaining rule, it should be reverse, save and then spend remaining.

Target to save 40% of your salary and then manage expenses in 60% of the money.

Force your self for a few months and you will see the magic in your bank account until you reach a point that you can manage a much better lifestyle even after saving most of your income.

Another important rule is to plan your purchases, don’t impulse buy. Plan to buy a phone, plan to purchase a laptop or any other asset. If you want to buy a phone set a date I want to buy a phone in 4 months and then start saving whatever small for buying your phone, this habit won’t damage your cashflow.

Understanding the opportunity cost

Opportunity cost in simple terms is what you lost if you keep your money in a savings account and not invest it.

A savings account might give you 3 to 4% interest, but mutual fund could have given you better returns. The potential money that you lost is the opportunity cost of keeping the money in your bank account.

Let money work for you, evaluate the potential interest loss or return losses on your money if you invested in X compared to Y.

Invest in Mutual Funds


Financial Literacy

Do you need an explanation to learn personal finance? head to this one beautiful website -> www.google.com and type “Make me financially literate” or contact us for a financial plan.