Everyone wants to make more money. One is always searching for ways to generate more wealth for themselves as well as others. In this process, people often lose their way and fall prey to dubious schemes where in the end they end up losing their wealth instead of creating it. Hence it is very important to do proper research before investing our hard earned money into something. We should not rely solely on the advice of others no matter how well-meaning they are. At the end of the day we are responsible for creating and protecting our wealth so as to take care of all our present and future needs.
Below I have shared some short and long term methods for creating wealth. These are based on my personal observations as well as those around me.I have personally tried most of these and found them to be working. Hence I am recommending these to you to try out and see what works best for you.
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Short term methods
- Analyze how you spend your time and make a rough estimate of the amount of free time that you usually have in a day. Once you have found that out, next you should look to monetize that free time. You could try some online ventures such as tutoring or look for other part time jobs
- Start investing small amounts regularly into P2P loans on popular websites such as Lendenclub, Faircent, etc. These will help to generate a steady flow of cash every month in the form of EMIs being paid by borrowers
- Make use of a cashback credit card for earning cash returns while you make necessary spends such as grocery, bills, rent, etc. In addition to generating monthly cash flow this will also help to improve your credit score that will give you access to better loans and offers from banks in future
- Use digital modes of payment such as popular online wallets, UPI apps, etc. as much as possible. In addition to security they also provide various offers from time to time that can help to generate some extra rupees in the form of cashbacks for various transactions
- Be sure to regularly review your credit/debit card point statements. Once you have accumulated a sizeable amount, you can redeem these points to earn attractive rewards in the form of gift vouchers of popular platforms(Amazon, Flipkart, Bookmyshow, etc.). These can help to get discounts the next time you make purchases on any of these platforms
- Review the services that you regularly use for example Big Basket(grocery), laundry, massage, parlor services, etc. and opt for membership if available. Members can get additional discounts in the form of points and cashbacks that can be redeemed against future purchases
- Check if there is any junk lying around the house. You could try to sell these off to not only free some space but also earn some cash. Nowadays there are lot of online options available, e.g. OLX, Cashify, etc. If all else fails you could also talk to your local shops/vendors to check if they buy those items
- While purchasing any gadget online, always check for exchange offers that can help to get discounts on the original price
- Make those luxury purchases during offer seasons, e.g. festivals during which brands usually come up with the best offers and discounts to entice customers
- Before making an online purchase, compare and check the best prices available with the help of websites such as CompareRaja.
Long term methods
- Invest a fixed sum of money through SIP every month into equity mutual funds and hold them for at least 15 years
- If you are confident then you could purchase some high quality stocks as well and hold them for the long term
- Create a monthly budget and track all your expenses meticulously. Review your expenses at the end of each month to check for areas where you overspent
- Automate your savings by setting up monthly debit instructions with mutual funds at the beginning of each month
- Invest time and money into increasing your professional skills. Check for the top paid skills in your niche and then register for courses/seminars to learn them
- If you are in a job, regularly sync up with your manager and discuss your career goals. Check what are the expectations and what it takes to get to the next level. Regular sync ups with your manager will help to ensure that you are on the right track and these will translate into better appraisals and promotion opportunities
- Keep your eyes open for better opportunities outside your current organization as well. If you find one then don’t hesitate to go for it. But please ensure to think through all the short term and long term aspects of it(not only economic) before making the plunge
- Invest in personal development by regularly reading and listening to great books, online videos and podcasts. You could also attend seminars and subscribe to courses arranged by leaders in the personal development and self mastery field, e.g. Robin Sharma, Tony Robbins, etc.
What not to do
Other than knowing how to create wealth, it is also equally important to know what to avoid so that you don’t lose your hard earned money. Below are some of the things that you should definitely stay away from for protecting your wealth.
- Do not indulge in short term stocks or derivatives trading. These are highly risky and you could end up losing all your wealth
- Stay away from gambling
- Avoid falling for get rich quick schemes and ones that promise high returns in a short amount of time, e.g. chit funds, ponzi schemes, etc.
- Over usage of your credit card
- Not paying your credit card bills on time and allowing it to accumulate and hence gather huge interest over time
- Not paying your monthly loan EMIs on time
- Invest into a product before doing thorough research from your end
- Too much borrowing from banks and other modes such as friends, relatives, etc. for meeting your expenses
- Spending more than you earn.