Ok. You have done the Financial Self-Test. What next?
Based on the scores you now have a self-assessment about your financial position. Now, to sustain and grow towards a bountiful financial future, follow these tips:
- Increase your income
One of the first traits of the wealthy is having spare cash after all expenses. Therefore, either taking up a job or creating own business, we should try to increase our income. It is hard to save with a meagre income. So, earning more than we can spend is the only way to save in ease. Only then we can invest the spare cash.
- It is dangerous to borrow in the beginning
Borrowing without a good reason is like committing suicide. Loans are to be seen only as an option to get out of difficult situations. It is not to be used for repaying another loan (rotate between loans). Some of the newly employed persons carry out unrequired expenses spending randomly – end up without enough money for required expenses and are forced to borrow. Personal loans, credit cards etc. are tempting traps and is difficult to not fall prey to them. Planned expenditure is a must to avoid loans.
- What is risk?
Risk is acting on something that could lead to loss or misfortune. Unplanned and uncalculated risks often bring large loss. But it does not mean we should never take risk. We can take calculated risks at a young age to have a happy financial future. Should I take up a job or start a business, should I invest in stock market or not, should I change my current job – Instead of brooding over everything and not doing anything, it is better to take calculated risk and go ahead with all our might. Persistence is the key to success!
- Saying “no” to unclear investments
There are lots of dubious investment advice available that sound lucrative but are fraudulent such as receiving returns 10 times of your investment. These schemes aim to trap those easy-lucky people who don’t have proper knowledge of how the market works. Majority of investors do not know about their investments. So, be it an insurance policy or an investment – do proper homework to know where you are putting your hard-earned money. Never fall for unclear investments.
- What’s the need now?
Many of us fail to see the importance of the words – Investment / Savings. A common notion about investment and savings is that: What’s the need for me to Save or Invest now? We start planning on how to spend the first month’s salary deciding about getting a mobile or bike etc. – instead we should be thinking how much to save for future. In later stages when we are carrying a family, we find it difficult to make both ends meet. Learn to save right from the first job – even if it is just $10 ! …later increase the savings. Turn the saved money into proper investments.