12
Money Lessons to Create Wealth...!
By
Mr. P V Subramanyam, Subramoney.com
This is a
post that should be read by all those above 25 age. If you
did not read this at 25, then read it now.
1. Saving more is good. However to get rich, YOU need
to invest more.
Saving is a good habit, but investing is a
learnt habit which will put you on the path to financial freedom.
2. Save between 20 to 30% of your take home salary. If you are
staying with your parents, this can go up even more.
Make sure that you contribute to the household
expenses, and house work.
Do save more, and invest the same as a habit.
3. Learn money management -- and learn the advantages of simplicity, equity investing &
compounding.
4. Learn the power of delayed gratification -- and teach it to your friends, siblings,
parents, and kids -- as soon as you have them.
5. Tell your parents marriage & having kids is
AWESOME, and you will do it by choice. These activities do not have an
expiry date.
Do not
ever rush into it.
6. Make sure that you marry somebody financially
compatible too.
 |
| P V Subramanyam, Subramoney.com |
7. Never ever stop learning.
Education (no not the degree) is the
gateway to differentiating yourself from the crowd and constantly improving
yourself so you can adapt and evolve with the ever changing world. The internet
has awesome stuff.
Khan Academy and Coursera are great places to
explore.
If you are an Indian, subramoney.com is a good place to learn a lot -- and there are enough links to
the outside finance world. Make a start, today. Empower yourself.
8. Do something which others will love to pay you for.
Create health or / wealth for people.
Take away their worries. Keep them happy.
Yes, you have to make a living, but put clients'
interests first. Always!
A happy client comes back.
9. Automate your finances -- EMI, phone bills, rent, electricity bills, gas bills, SIP (Systematic
Investment Plan), etc., get the routine out of the way.
Be done with it.
Make sure you have auto bill pay set-up and
automatically transfer funds from a savings account to an investment account on
a monthly basis.
Automate your investment account in a systematic
investment plan and don't get caught up in the allure of 'stock picking',
'market timing' and trying to become the next investing billionaire.
Reduce your taxes & fees as best you can.
This means taking a long-term perspective with your investments (at least 60
months plus) and never paying for high fee investment accounts and managers.
10. Stop spending money on useless 'stuff'!!
It's not possible that all the stuff you're
buying is making you happier.
In fact, it's perhaps putting a strain on your
financial budget.
It is surely POSTPONING your financial freedom.
Do not spend to impress your friends and your
neighbours.
You're not winning any brownie points or gold
stars for owning things you can't afford.
11. Get sensible amounts of medical and pure term life insurance. Understand first, then, buy.
12. Be as debt light as possible.
If you must borrow, let it be only for a house.
That too about 50% of the cost of the
house, not 110% as the BFSI wants you to borrow.
Remember 2008 crisis? It started in the mortgage
market. We are heading there again! Now!
About the author..
Mr. P
V Subramanyam, a Chartered Accountant by qualification and a financial trainer
by profession. Writing comes from the reading that he do.
After a 15 year career serving in the trenches
of the financial services industry – from Equity broking, mutual fund advising,
corporate finance advising, personal financial planning, he turned to training.
He have been in the training profession for the past 17 years.
He have
done upwards of 50 training sessions on ‘Finance for Non Finance companies’ –
across manufacturing companies, BPOs, NBFCs, as well as open programs for
training companies. This gives a broad view of the accounting, costing and cash
flow concepts. The people who attend have ranged from operations, HR and sales
managers.
He have trained in most mutual funds, life
insurance companies, private sector banks, brokerage houses, and many
companies. He also conduct financial planning workshops within corporate India,
helping employees save better, invest better, equipping smart people with the
tools to get richer.
The following companies have invested in
training with he:
Banks:
Standard Chartered, Hdfc, Icici, Kotak
Mutual
funds: Hdfc, Templeton, Hsbc,
Insurance
companies: Hdfc standard life, Icici Prudential life, Birla Sunlife,
Brokerage
Houses: Kotak, Indiainfoline, Hdfc
Have
also done training for journalists, PR agencies and advertising agencies
working in the financial services sector.
He have
been going around the country meeting and talking to doctors about how to make
their money work harder, and how to avoid big financial mistakes.
He write regularly for financial websites
(www.moneycontrol.com, www.myiris.com, rediff.com and magazines like Money
Today, Money Mantra, newspapers – Economic Times, Indian Express, Financial
Express, etc.
Wrote a book on wealth creation called ‘Retire
Rich Invest Rs. 40 a day. It is a book on wealth creation. It has so far sold
upwards of 1,20,000 copies.
He have
written a book for doctors – ‘Wealth Prescription for Doctors’ http://www.homeshop18.com/get-rich-wealth-prescription-doctors/author:p-v-subramanyam/isbn:9789380200231/books/business-economics/product:30546781/cid:13123/
Have also appeared on business channels like
Cnbc, ET Now, Bloomberg, Zee business, Cnbc awaaz, on personal finance
shows
http://www.moneycontrol.com/video/business/financial-advice-to-make-youinformed-investor_636661.html
No comments:
Post a Comment