It is the month of November and this year it has given us two reasons to cheer. It was a double whammy of Diwali and Children’s Day! Diwali is a time when we also pray to Goddess Lakhsmi, who blesses us with abundance & prosperity. Being born to affluent parents, all your needs and desires have always been fulfilled, sometimes even without you having to demand or earn them. You know there’s money at your disposal for all the luxuries in life.
Why not take this opportunity to stop, think and learn about the art of managing money and creating wealth yourself?
Here are some simple tips to get your started that can change the way you look at your life by simply changing the way you look at money:
Talk to your Parents
Have a heart to heart talk with your parents about how they have managed their finances to enable you to have a life of abundance. After all, family wealth is not a bottomless pit and wealth is not built overnight. Seek their advice on how to make wealth last longer. Take investment and saving tips. Make yourself literate on the nuances of banking & finance.
Understand the Value of Money & Savings
Even if you have money in abundance, appreciating and valuing is bound to help you in the long run. If you have tried to earn some money over the holidays or after school, you surely know the true value of every rupee earned. Understanding the travails of earning and accumulating wealth will automatically make you value what you have. This will, in turn, make you a discerning spender, wanting to put aside some of your money for better future use. Remember, wealth begets wealth!
Investing for Financial Discipline
As a child you probably had a piggy bank but what about now? Keeping a mindful track of your money will ensure financial discipline. You could start with a Systematic Investment Plan into Stocks or Mutual Funds. You will then tend to work around your finances to fulfil that activity. This kind of discipline will earn you not only financial returns but also intangible gratification of having something good.
Be Bold & Explore
As a young adult, you don’t really have any concrete short term or long term financial needs to plan for. As a result, your risk-taking ability in investments is much higher and you have the scope to experiment with your savings. You can explore various high-risk investment avenues such as Direct Equity or even Bitcoins. Direct Equity participation is definitely something you may consider and learn how to identify good stocks, which can help you build a long-term Equity portfolio. Direct equity investments can be considered across both Domestic as well as International stocks.
The returns earned from your savings can be utilised for something you truly desire rather than depending on your parents. Want the latest Apple Airpods or the newest Converse or Nike shoes? Well, you can buy them with your own money. You could even use the money to start your own enterprise. What better way to start one than with your own capital? You will feel proud and empowered and your self-esteem will go up notches. Turn the tables by buying your parents a gift with your own money for a change and enjoy the sense of satisfaction and feel-good factor it will give you.
Giving Back to Society
If you have managed to save enough through your investments, take the opportunity to be benevolent—donate, get involved in some charity work. Not only will it give you a sense of satisfaction, but you will also be making the world a better place.
Lastly, enjoy your young days and appreciate the little joys this festive holiday season holds.