Are you going to become a Rich Dad?
If you are in your Early 20s this is for you !!
Almost everyone of us wanted to be rich in life but most of us don’t know the how to begin or what to do.
For those people I have got something in this newsletter you will know the right path to follow to become a rich dad!
Lets Begin…
Pay yourself first then others
What you will do when you get your salary, you will probably pay bills, pay EMIs and spend the rest on your expenses and if by gods grace something left it will go to savings.
Here’s what we all do a big mistake and end up being the part of the rat race, we become a part of this cycle and this happens every month and every year even if our pay scale increases it continues to happen.
SOLUTION TO THIS PROBLEM:
Always pay yourself first and what I mean by paying yourself first is that you should invest in yourself.
Eg: Investing in stocks, Buying assets, Learning a new skill….
Now the question which will be rising in your mind will be how would I pay EMIs and bills. Trust me that all are going to get paid by one way or other because you will invest some proportion of your income in yourself and that will ultimately increase your Cash flow and you will have a rising asset column.
But it will take time because good things take time to bear fruitful things.
Buying a House is the worst mistake
Most of them will not like this idea, But let me tell you my friend you are in a big danger unless you are a millionaire.
Buying a house makes us trapped in long term prison of rat race. Every month you have to pay the EMI or you to return the money you have borrowed from your friends and trust me borrowing money from friends makes the relationship with them hollow.
Instead of buying a house you invest that amount of money in mutual funds or stocks because of a time they will give you tremendous return and your dream house will be still worth of that amount or bit high or low.
But if we compare these two things the ROI(Return on investment) is much greater in stocks rather than buying a house.
Start a monthly SIP(Supplementary Investment Plan)
If you are in your early 20s then my friend this step will bring you one step closer towards financially freedom.
You can start with just Rs-500 or Rs-1000 with just a interest rate of 5% or 8% and you will increase your investment amount because your income will increase gradually. Lets suppose you are 20 year old and decide to invest till you are 60 year old, Here’s where the magic of compounding begins when you will be at age of 50 you will have roughly 12 crores in your bank account.
Yes you heard it right this is the magic of compounding it gives you tremendous returns.
So assume you just started with Rs500 and what if you would have started with 40k or more than this you will become a billionaire at 60 and can enjoy your retirement.
So here I would wrap up by saying that invest in yourself because it will have the greatest Returns on investment you will ever get.
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