Well, who doesn’t want to become Richie rich? And, after the renowned bitcoin buzz, the amount of incoming flow of wealth has been enormous this year. Also, the NIFTY has closed lately on an all-time-high, its time that we should start thinking about saving our wealth and add value to them.
Here are some effective ways to save and grown your existing wealth and make the new year even happier than ever before:
Reinvest by compound interest
Compound interest should be your best friend. You can grow your money by simply reinvesting the interest and dividends you earn. This means that the longer you invest, the more compound interest you will earn, and the more your money will multiply.
2. Use your credit card to save wealth and earn more
If you do not already own one, we suggest that you apply for a credit card because it will help you save more money. Yes! Contrary to popular belief, if you use your credit card right, you can earn a lot of freebies. You can opt for cash back credit cards and earn cash rewards, use your signup bonus, get free hotel stays and complimentary flight tickets, and a host of other freebies. In fact, many credit cards have tie-ups with supermarket chains and you can actually get a discount on groceries. All this will help you save money in the long run.
3. Get health insurance and life insurance
Having an insurance policy will go a long way in protecting you against risk. Not just this! Having a good health insurance policy will help you save money on hefty medical bills and take care of all your medical treatment costs. A life insurance policy is also a good buy and will help you save tax.
4. Invest in an appreciating asset
Instead of investing in a depreciating asset, try to make investments in appreciating assets. Like, apply for some home loan!
5. Keep a track on your spending, save more than you spend
It is always wise to know exactly where your money is going. Make an effort to read your bank statements and your credit card bill statements to see where you have been overspending. See how you can avoid irresponsible spending and save more money. The trick to building wealth is to cut spending and save at least 10% more than you spend.
6. Monitor all your investments
Before the end of the year, make sure you take a look at all the investments that you have made and see how they are performing. If some of your investments are not doing well due to market fluctuations, pull them out and reinvest in better-performing holdings. The trick is to have a balance between high-risk investments and safe investments.
7. Don’t waste putting your money in a savings account
Last but not the least, make sure that you are not keeping a major portion of your money in a savings account. This is because the rate of interest on savings accounts is very less and inflation will only eat into your savings, reducing your purchasing power in the long run. The best way to beat inflation is to invest in a range of high-earning investments such as mutual funds, stocks, and also in safe investments such as fixed deposits and recurring deposits.