It’s not a cakewalk to create wealth. Getting the highest returns isn’t sufficient to create lots of money. High risks might give high returns. But that isn’t always right, because high risks may not guarantee high returns and instead give you a loss. The right way to make wealth is to earn consistent returns, neither too risky nor too risk averse. To earn consistent returns, you have to maintain the right investment behaviour and stick to your asset allocation. India’s First Free Online Financial Advisory, Moneymindz.
Making money isn’t about getting rich overnight, inheriting a fortune of wealth overnight, winning lotteries, playing money games, etc. Making money means being patient, working hard and practising honesty and discipline along with careful planning and execution.
Here are seven myths about wealth that has chained you and continues to do so
1. A handsome salary package is sufficient to create wealth
Rome wasn’t built in a day. Similarly, money doesn’t come to you overnight. The “handsome” salary package is meant for your needs (basic necessities like food, shelter, clothing, medicine, etc) and perhaps a little luxury to enjoy. But for long-term wealth needs, you have to beat inflation and the way to do that is to invest properly. India’s First Free On call Financial Advisory, Moneymindz
2. You need emotions while investing
Emotions are a vital part of your life, but not while handling money especially in the future. If you don’t want to lose track in investments, it’s wise to leave your emotions behind and think rationally. Never let short-term uncertainties harm your long-term goals.
3. The best yielding funds can be selected and you can rest
Everything is cyclical in nature. What goes up comes down. If a fund is the best today, it won’t remain “best” forever. It is bound to change. Certified Financial Planner, Kuber Mindz, Moneymindz. Creating capital needs asset allocation. You shouldn’t put all your money in what you assume to be “best”, etc. This allocation has to be based on goals, volatility, risk and age.
4. Being conservative means being pessimistic
The problem with most investors is that they are overly optimistic about an outcome, that’s why they think it is pessimism to stay conservative. Slow and steady wins the race. Free Online Financial Advisory, MoneyMindz. Too many cooks spoil the broth. That’s why it’s important to stay steady regardless of risk appetite. But take appropriate risk.
5. If you have wealth, you’re financially fit
Wealth is nothing but an abundance of material possession. Financial fitness means having money when you really require it. If you are in a desert and starved, no amount of gold or money will satisfy you. All you need is food and water at the time.
6. Money in assets equals money at hand
Wealth has to be liquid so that you can avail of it during times of necessity. Of what use is tons of money when you are drowning in an ocean gasping for breath?
7. Readiness means having enough money to expand at will
Readiness actually means managing unanticipated events and circumstances in life. Whether you can expand it at will or not, is out of the question here.
You can find more advice and guidance at www.moneymindz.com or give a missed call to 022-62116588