Beginners Guide to Wealth Creation – Four Proven Tips

It is the innate desire of all to build a pool of wealth to support life after retirement. However, to be able to live that life, you need to have a substantial wealth creation plan in place. This write up enlists a few tried and tested wealth creation tips for the beginners.

You may have read several articles online and may have even heard financial experts talk about wealth creation plans. Remember, the old story, we all studied in school about the thirsty crow? The wise bird instantly recognised that dropping the pebbles one by one into the pot can bring the water level up and it can quench its thirst. With the right plan, what seemed impossible became a reality soon. We, too, can achieve our financial goals of creating a wealth pool by investing regularly, and meticulously planning the savings, expenditure and the debts. Here a few proven guide to wealth creation for beginners to help them accomplish your financial goals:

Start early

It is a popular belief among many that you need money to make money; however, contrary to this belief, wealth creation from scratch is achievable. Remember the phrase, ‘Early bird gets the worm,’ the same principle applies to wealth creation. The answer to how to create wealth lies in starting early. When you start saving from a young age, you give yourself a better chance for the savings to grow. Focus on saving as much as you can by reducing the expenses. This would help you build a significant pool of wealth in the long run. Also, at the same time, you can look for additional streams of income.

Time and Knowledge are Crucial

A study suggests that nearly 60% of the middle-class Indian adults have no idea about wealth creation strategies. They don’t even understand the basic concepts of finance, which eventually leads to poor investment decision making. Exposure to concepts of budgeting, investing, savings at an early age can help the youngsters to make informed financial decisions for a more secure future. Taking the right investment decision right at the start will give you more time to help the capital grow. Taking a few hours every week to read and acquire knowledge about financial planning will help you manage your finances more effectively, which in turn will go a long way in wealth building.

Take Advantage of your workplace

If you are paying for the Employee Provident Fund (EPF), good. But, if your organisation offers, National Pension System (NPS), subscribe for it. Beginners may think that these schemes affect their immediate liquidity, but think long-term; it would secure your retirement.

Go the Equity Route

This is one of the most effective strategies for wealth creation. You can invest in equity through the mutual fund schemes or you can directly invest in shares to enjoy the benefit of compounding. Investing in equity funds for short term gains can be volatile, but it is best suited for long-term wealth creation goals.

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.