I have a dream, dream of becoming a millionaire
Written on Friday, September 18, 2015
By Kumar Pushpraj
In last few weeks when I flipped through newspapers, I saw some interesting transactions in the real estate sector. Cyrus Poonawalla bought Lincoln House for a whopping Rs 750 Crore, making it the biggest real estate deal in the history of India. Prior to that some other mind boggling developments included Jatia House in Malabar Hills being sold to Kumar Mangalam Birla for Rs 425 Crore, Godrej family last year got possession of Homi Bhabha's house worth Rs 372 Crore. While reading all these stories, as a common man I was struck with the enormous amount being transacted by these Millionaires and that too for a house. Well, it's their wealth and they can use it as per their wish, why am I getting restless? When introspected, I realized- I have a dream that is deep wedged and every time I read such stories it gets ignited. I have a dream, dream of becoming a MILLIONAIRE
and I am not the only one, there are millions living with this wish.
There is no sure shot formula of becoming a millionaire but yes, discipline with monetary movements will bring results over a period of time. Even though this is easier said than done, but let me share with you what I have figured out to be the golden rules you would have to inculcate to start with in order to be the next millionaire. Remember, every penny counts.
Avoid buying things that you don't need
Millionaires can buy everything they want and perhaps this is the reason we want to be one, but to start with you would have to avoid every unnecessary expense.
Your expenses should not exceed your earning
This will make you habitual of saving. In the initial stage of your career you should not be worried of the amount you save, what matter is doing it on regular basis. Once you have a set amount, that you can save after all your monthly expenses, don't let it sit idle- start investing it.
Buy things which you can easily pay off
We are so used to the EMI culture that we hardly realize that there is another side to it. Nothing comes for free and the early you understand it, the better it would be. You can buy necessary things on EMI but keep a watch on interest and processing charges, also try keeping the duration of installment as short as you can afford. This will save you a significant amount on interest.
Patience is the key
A quality lifestyle is always tempting and the urge increases with growth in income. To reach your goal you would need to exercise patience and control the urge for luxury in initial phases.
Time is money
Don't delay your credit card payments or even your utility bills as it would cost you extra amount. This may sound insignificant but if you analyze your credit card late fines it would add up a decent amount.
Keep a separate fund for hard times
We cannot avoid emergency situations and have to be monetarily prepared to face it. Keep an extra pool to deal with such situations.
Be debt free
Try to be financially independent in terms of debts. Even if you have a loan and you are paying EMIs, don't miss the due date. Take loans for shorter duration, so that you can save a good amount on interest.
Get a second job
Never limit your source of earning. If you are in a regular job and have time, take freelance assignment or a part time job as it would add extra income to your monthly earnings.
Have a vision
Having a vision larger than what you can currently deliver will actually be the best way to ensure that you meet your goal.
Now we come to the most important part- INVESTMENT
Invest in a disciplined manner:
Make it a habit to invest on a regular basis and to inculcate this habit you can start with mutual fund SIP. This would result in a forced saving habit as the monthly deduction would be directly from your bank account.
Realize that there is more than one approach:
Don't limit your investment to just one scheme or plan. Compare different investment products and park your money in multiple schemes.
to access the planner which would help you strategize your goal effectively.