How to get rich fast? 10 Personal Finance Tips
Ishu last edited by ftForumMod
Who doesn't like to get rich? In fact, we all keep looking for fast and easy ways to get rich in lesser time. Of course, there's no sure shot formula to it. Unless you win a lottery ticket or gain big in stocks (that too if you are lucky enough and can take bigger risk).
So, I won't share any shortcut to becoming wealthy. These are just some useful personal finance tips, if followed can surely make you climb the ladder of success easily.
10 Personal Finance Tips to get rich:
1. Define what being rich means to you:
"Rich" is defined as having a bulk of money or assets. Also, wealthy means having plentiful or in abundance. So, firstly you need to define for your self what does rich mean for you.
How much money is plenty for you? Will learning new skills make you rich? How will health make you rich? Do think about it and spend some time on reflecting on your definition of getting rich.
2. Get into a habit of Budgeting:
The starting point of a good financial plan is a good budget. Budgeting is an exercise not just for corporations but equally important for personal finance. So, do have a clear idea of your cash flow i.e summary of incomes and expenses. This will help you prioritize expenses and cut down on expenses which do not fit your budget.
3. Add new income streams:
Most successful or rich people have multiple income streams. They are never dependent on a single income stream. So, think about adding new income streams to your income. The genuine sources which can keep on generating ongoing income for you. It can be starting an online business, selling online, guest assignments or buying an asset which creates regular income.
4. Have clear Short term and Long-term goals and Invest accordingly:
Set up clear goals for yourself both in the short term and the long term. Short term and long term goals both require different investment strategies to achieve them. Start investing early for long term goals like retirement or big house that you want to buy 10 years down the line. Remember, some asset classes outperform markets over a longer period only.
5. Have adequate Health insurance:
Health costs are going through the roof and they will keep on growing. So, if you do not have adequate health insurance it can make you poor. So, make sure you have adequate health insurance for you and your family to take care of any such issue.
6. Go out meet successful and rich people:
You are the average of people you hang out with. So, go and meet successful and rich people. Believe it, you will learn a lot. Reduce the time you spend on social networks and go meet real influential people, if you get the opportunity to do so.
7. Create a Financial Plan and track your goals:
A good financial plan is the initial point to create wealth in the long term and achieve your financial objectives. Sit with your financial planner and define your financial objectives. Set up realistic goals and keep tracking them.
8. Cut the flab:
If you start tracking your cash flows you will start getting a good idea of your expense profile. Pick up one expense (it should be a substantial one) which you want to cut from your expense profile. It might be subscription to TV channels you don't watch or the visits to fancy hotels whose food you do not enjoy any more . Identify one such expense and cut it down.
9. Read good books & Follow Interesting Blogs:
Do invest in yourself. Start reading good books and follow interesting financial blogs. They will enrich you with important information and success stories to learn from.
10. Teach your kids all of this:
Well the last good thing you can do is, to teach your kids all these things. Teach them about money management, fiscal discipline, budgeting, reading and doing good things with their life and money.
Hope you liked these personal finance tips. Any other additional tip you wish to share, please feel free to do so.
Guest last edited by
@Ishu Really helpful insights, thanks for sharing this valuable message with us! I am sure that anyone who follows these tips will benefit a lot.
Fizz7 last edited by
Just don't spend most of your money on things which you don't need. Like Iphones, Macbooks, expensive cars etc. Spend on these only when you start earning some serious money in your life. Don't spend it on tobacco, drinks and drugs - you will get used to it and it will cost much more to heal in future. I think you missed that!
Ishu last edited by Ishu
@Fizz7 Hey, thanks for adding to the important personal finance tips above. Actually, I didn't miss out the point you explained. Check "Cut the flab" this directs towards tracking our expense profile only. I took an example of TV channels & fancy hotels.
You have highlighted it further by adding iphones, cars and Macbook
And yes, you have rightly pointed to stay away from addictions that can harm us in one way or other. Thanks for making it more informative. Any other ideas of getting rich that come to your mind, do drop in here to share with us.
Punkeirang last edited by ftForumMod
Nice post. Just to emphasise, all these things rotate around discipline. Without discipline, you can create a very extensive budget, but still fail to follow it. You must personally decide on what your goal is and how to achieve it, then go for that.
Ishu last edited by Ishu
@Punkeirang Hey, thanks for your appreciation! You are very correct in saying that "all these are based on discipline". In fact, discipline in our personal and financial life is the one primary factor that binds all the above points together. Without discipline, it becomes harder to grow financially and achieve our overall objectives.
Namdev1232 last edited by ftForumMod
I think these tips will definitely help. I feel investing is the main thing that can help us become rich. If you are a 25 year old and start investing only Rs.5000 per month in any medium and large mid cap fund, then over the years you will build a big corpus.
Harleen last edited by Harleen
@Ishu Very nicely explained! These are in fact the golden rules of getting rich. We should follow a disciplined approach to grow our wealth. I agree with all your points. Budgeting, setting long term goals, cutting on expenses, and learning to manage your finances all lead to making us wealthier.
There's no easy way out. Unless you are lucky enough to win a big lottery ticket or an even bigger game show Or you inherit wealth or gain in the stock market. But, all these options don't fit all.
So, a well planned strategy can anyways lead to financial freedom. And yes, one needs to be clear about what "rich" actually means for you.
Guest last edited by
@Punkeirang well said! Deciding our goals is really important. If we have clear objective in front of us we can move ahead to achieve that. I feel we should get rich through our good work.
Adding a side income does help to get rich in terms of money. But, one should grow rich in good deeds.