Interesting Financial Guidelines for Becoming a Crorepati

Have you always wanted to become a ‘crorepati’? Did you often daydream about getting shortlisted for the renowned TV show, ‘Kaun Banega Crorepati’? You can make this happen without coming on TV by being financially disciplined. By following a few financial tips, you can be on top of the world with Rs.1 crore. It is not something that cannot be achieved.

You can invest your hard-earned money in different monetary instruments and attain your ultimate goal by following a step-by-step plan. In order to achieve this goal, you will need to be firm to be financially disciplined on a daily basis. Only then, it is feasible.

Tips to Help You Make Your First Crore

You can view the following simple tips and create your own financial strategy in order to earn Rs.1 crore in a few years! Designing your own financial strategy is important as each person will have different preferences, requirements, financial conditions, and personal circumstances.

1. Start investing early: This is one of the most frequently mentioned financial tip that is a very effective. When you start early, your money will start getting compounded, and at the end of a few years, your funds will get accumulated extensively. When you invest a small amount at an early stage of your life, your money will grow at a higher rate, as opposed to investing at a later period.

2. Make a sketch of your entire financial plan: You will need to make a sketch of your financial plan physically or digitally. There are several apps and tools on smartphones and tablets that allow you to draw tables and charts to record your financial programme. You can make the planning process amusing and catchy by using different colours, tables, etc. You will also be motivated to view your plan on a regular basis when it does not look plain and boring. You can edit and update your strategy according to the different financial developments. To be aware of your plan’s status, you will need to assess your funds frequently. In your strategy, you will also have to fix a timeframe for reaching this goal.

3. Choose the right financial instruments: You will need to pick the appropriate financial instruments according to your preference and requirement. You can choose any Unit-Linked Insurance Plan (ULIP) by checking out the various life insurance plans. A ULIP will invest your money in different funds accurately and also provide you with reliable life protection. This is a double bonanza for any investor. Moreover, you will gain high returns at a faster pace. You can also invest your money in simple savings schemes or fixed deposits. Investing in such schemes will give you slow and low returns, but you will not have to worry about any form of risk.

4. Diversify your investments: You may be comfortable investing a specific amount in one financial tool and not bother about investing in other tools. It may also be easier to track the status of your fund. However, your fund growth may get stagnant and you may also not make enough returns when you stick to one form of investment. Hence, you should invest small blocks of your money in different tools. You can check out one of the most popular forms of investment, systematic investment plans (SIPs). These come under the category of mutual funds. They will enable you to distribute your money in multiple types of funds. Each fund will provide you with unique returns and your investment portfolio will also be impressive.

5. Consolidate your debts (if any): If you have 2 to 3 forms of debt in your name, you could try debt consolidation. This will help you save money and also assist you in monitoring the status of all the loans together. Managing your debts wisely is very important in order to become a crorepati. Imagine you apply for a personal loan from a certain bank and you take a student loan to take care of your daughter’s engineering course fees. You can combine the debts of both these products by taking a debt consolidation loan. With the help of debt consolidation, you can administer and coordinate your various loan expenses. You will also not miss payment deadlines. Moreover, it decreases the interest rate on your various loans.

6. Check the status of your financial plan regularly: You cannot invest your money on one day and then forget to check its status. You will need to be aware of what is happening to your funds. You also need to make sure that you stick to your deadline.

7. Take home the money once you earn it: Once you attain this goal, you need to celebrate! Kudos to you for making it happen! After you make the money, you need to withdraw the money skilfully. You also need to find out about the taxes that will be levied on your money and look for ways to save your taxes.

Make sure you take home the full amount that you rightly deserve after investing for so many years. While working towards this goal, you need to be sure of the risk level that you are comfortable with.