Financial freedom is a goal many strive to achieve, yet only a few accomplish it.
Everyone wants to be rich and are looking for ways and shortcuts to become wealthy at the earliest.
However, wealth creation doesn’t happen overnight; it requires meticulous planning, unnerving determination, strict discipline and above all, adequate time to bear the fruits of prosperity.
In my experience, the most common reason people fail to achieve this is due to a lack of proper knowledge about wealth creation.
The process of being wealthy begins with self-confidence and inculcating the right attitude while following golden rules.
Today I am sharing seven fundamental laws of wealth creation.
1. Save regularly and Start Investing from an early age
Target to save 20-30% of your Income regularly and increase the amount gradually.
Let your savings work for you by investing them in inflation-beating asset classes.
2. Avoid Debt
The poor pay interest, while the rich earn interest.
Avoid debt as much as possible.
3. Have Patience
Don’t speculate with get-rich-quick schemes.
Focus on long-term wealth creation through different asset classes as per your risk profile, such as mutual funds, equities, real estate and commodities.
4. Invest in Yourself
Keep learning.
Acquire new knowledge and upgrade your skills to enhance your earning power.
5. Diversify
Safeguard your growing fortune with optimum diversification of assets by investing in a wide range of financial products and insuring for risk and uncertainties.
Gradually diversify your income stream to ensure better financial security.
6. Have a Financial Plan
A financial roadmap is critical to accomplishing your financial goals and achieving financial freedom.
Create a holistic financial plan and take the help of a professional if needed.
7. Consult an Expert
If you have the time and the skills to manage and generate wealth, great!
Else, don’t risk your future on half-baked knowledge or look for clues from media or friends; promptly hire a qualified financial advisor.
Adopting the above seven wealth laws will help you immensely in your journey to wealth creation, preservation and growth.
How many of the rules mentioned above do you follow?
Feel free to share in the comments
