Many Individuals aspire to become a millionaire, but only handful of them push themselves hard enough to achieve this goal. Today, when being a billionaire is the new focus for the wealthy, becoming a millionaire is a possibility for many, and it generally boils down to rational thinking and occasional calculated risks. Moreover, there are no tricks or scams involved in getting that millionaire tag, just good old-fashioned consistent and disciplined investing. If you are ready to invest smartly to reach your millionaire milestone, here are few steps to help you get there:
- Start Saving a Percentage of Your Monthly Income: When you are young, it's hard to envision what life would be 30 after 35 years. There is additionally the peer pressure to have the most recent cell phone, wear elegant brands and drive the latest cars.Instead, start saving a percentage of your monthly income. You must save at least 10% of your monthly take-home income towards your goal to achieve your first millionaire milestone.
- Diversifying Your Investment Plans: While regular saving is important, it is equally important to invest in the right type of asset in order to actually achieve your first millionaire milestone. It’s simple! Select investments which can help you in the long-term. In this case, equity could become a preferred choice. You can also look at diversifying your investment amongst stocks, mutual funds, Unit Linked Insurance Plans (ULIP plans) etc.Whatever investment option you choose, maintain a proper proportion of equity, debt and balanced funds, to prevent your portfolio from becoming too risky or too conservative. Unit Linked Insurance Plans (ULIP plan) perfectly fit this need. ULIP plan allows you to choose funds of your choice, whether it’s equity funds, debt funds or balanced funds and additionally allow you to switch between funds. This feature is particularly helpful when there is a need to switch the funds of your ULIP plan considering the ongoing market conditions.
- Invest Diligently and Invest for Growth: As your wealth grows, you will have more and more investment opportunities available to you, so, accordingly increase your investment amount. You could begin by investing any additional gains like incentives or bonuses to prepone your target achievement. However, managing your money can be time-consuming. So, once you develop your investment plan, arrange automatic periodic transfers from your bank account to the fund house or insurance company.
- Review Your Investment Once A Year: Your work does not end at investing alone. You should continually review your investment, at least once a year, no more no less. In case your fund has underperformed compared to its benchmark, investigate the reasons for the underperformance and the likelihood of persistence of these reasons in the future before deciding your course of action.
The Ending Note:
Even though converting savings of a couple of thousand rupees per month to 10 million rupees resembles a difficult or rather unachievable task, beginning early and having the correct approach make it doable. Hopefully breaking the first 10 million mark will ignite the fire in you, and you will find the next 10 million is accomplished quicker.
If you follow the above steps, there is not a lot else you have to do. Simply sit back and watch your wealth grow.
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