Everybody needs extra money, whether it is to add to the present income, to save up for a better future or even to improve the quality of living. Money is the core ingredient in the recipe for success. And so, you need to focus on how to earn more money in order to be rich. And what’s better than letting your own money make more money for you?
Money mindset challenges
We usually get stuck by focusing on how to earn a big amount at the first go and then never really pay any heed to how we use that money after we get it. People perceive themselves as rich or poor based on their income. But what about how you use that income? Many people with lumpsum income remain way behind since all they do with their money is spend, including spending on liabilities like house, car, etc which won’t make more money for him/her. The trick to getting rich is to use your money in a way that it makes more money for you. Yes, the answer is investments – investment on yourself, or real assets that can generate you more income, or on investment avenues that would earn more money for you. Passive income is the way to go!
Tips and tricks for putting your money in investment avenues
There are plenty ways to double or triple your money after making an investment. Before investing, careful planning and strategic scheduling are essential to check the credibility of the investment as well as risks involved.
- Solid non-speculative portfolio: The time and tested way to increase your ventures are by investing in solid, non-speculative portfolio which is fully diversified between blue-chip stocks (stocks of a large and well-established company) and investment-grade bonds ( the type of bonds banks are allowed to invest in). This is not a quick way method, but rather a more ‘slow but steady’ method.
- Mini mutual funds schemes: Motif is a special kind of venture platform in which the individual invests in mini mutual funds schemes that are based on a particular type of criteria; such as solar energy in Tamil Nadu or trash recycling in New Delhi. There is a minimum amount to be invested and the said amount can be doubled within the year.
- Investing in stock markets: Investing in stock markets is the old but guaranteed method to increase your investment money. With the markets at their peak, the right time to invest is now.
- Mutual funds: Another tried and tested method of increasing your investment returns is by investing in mutual funds. Investing through SIPs (Systematic Investment Plan). This helps the individual steer clear of and overcome market unpredictability.
- Investing in IPOs (Initial Public Offers): Investing in IPOs (Initial Public Offers) in India provides the individual (investors with high-risk appetite) with higher profits.
- Investing in gold: Although investing in gold might not seem like a good idea because of the falling prices. The stock market now is increasing while the opposite for gold prices. This, therefore, would mean that the booth would react in a converse way when the situation is inverted. Stock market crashes are very common and quite often and once it crashes, then the gold prices would increase. Investing in gold ETFs (Exchange Traded Funds) is one of the best options for investing in gold.
- Real estate: Real estate is another prime venture to invest in long term. Returns are quite high and the amount invested gets doubles or tripled from any time usually between 5 to 20 years.
- Fixed or Recurring Deposits: One of the safest investment options includes investing in Fixed or Recurring Deposits. This always provides the investor with assured returns.
- Tax saving options: Investing in tax saving options can increase the growth of the amount invested. This alternative includes many schemes such as ELSS( Equity Linked Savings Scheme) Mutual Funds, PPF (Public Provident Funds), NSC( National Saving Certificates) etc. Investing particularly in ELSS allows the investor to take benefit of equity stock’s expansion as well as provides the investor with a tax advantage with a lock-in period of three years.
So what are you waiting for? Now that you know how to make your money earn more money for you…get going and get rich!
