Ten important rules of Wealth building.

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Ten important rules of Wealth building.
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If you have been working for a few years, the
chances are quite high that you would want to
think about investments on a different level. You
want to invest in the right kind of instruments
that would give you better returns on the short
term and the long. It is quite tough to figure
out the best options you may have and that is
precisely why you need to have the right wealth
management guides with you at all times. There
are going to be many places you can invest your
money but unless you get this right (from day 1),
it is going to be a challenge. Now, in case you
do not have a professional guiding you on your
investment ideas, here are some of the most
important rules of investing! The ten important
rules of wealth building we would like to call it

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1.Spread your investments throughout your career

You do not have to start big, the idea is that
you start as early as you can and never stop
pushing yourself more towards making the next
investment. You have to keep in mind that the
aggregate will spread out to a larger number over
the years and during your earning years, you
would spend, save and also invest which would
make your retirement years completely
independent.
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2.Decide on a percentage you would save
It always works when you decide on the amount you
would be saving and then decide on the amount you
would have to save. Many of us think it the other
way we spend and then decide how much we can
save. Always cut the 15 or 20 you have
earmarked to save each month and keep it away.
That would help in two ways. One is that there is
reduced pressure at the end of the year when you
to make a larger investment say you have to put
Rs 60,000/- into an investment each year, make it
Rs 5000/- each month and suddenly, it does not
seem like a large amount. Secondly, when you
deduct your savings off at the start, you
automatically spend lesser.
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3.Need V/S want
We keep thinking about the things we need to buy,
and more often than not we think about the things
we want to buy! They are completely different
requirements and you have to distinguish them
right at the start. This simple technique would
help you keep aside more money for a rainy day
and help you tremendously.
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4.Extra money is still money
We tend to splurge the moment we get money that
was unexpected. Not that it is a wrong thing, but
imagine if that money was kept to good use? Let
us say you were to get your annual bonus or a
policy that matured, you would be better off
putting that money in a place that gives you a
better return on a one or two year horizon. These
kinds of investments would give you a better
return as well as be a good saving for the
future.
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5.Read up before any investment
There are going to be many places for you to
invest your money, the idea would be to
understand how this money is intended to grow and
at what percentage. This is definitely not an
easy task but it would give you amazing insight
into the way the industry works and the benefits
that come with it. It would be a guide in many
ways to understand how your growth market should
be and why you must invest in certain ways.
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6.How much can you risk?
This is the toughest question for most people to
answer to be honest. There are way too many
sources to invest in and unless you have got this
absolutely spot-on, you would have way too much
to invest in and eventually invest more than your
appetite. One of the biggest risks we face is to
over invest and then struggle to pay up or pull
out of the investment. The easiest idea is
typically to invest as per your appetite and then
figure out how much you can get out of it.
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7.Keep the right target and exit at that
Many of us follow the idea of investing and just
waiting for the returns to go all the way up and
down. Whenever you invest, think about the amount
that you have put in and what percentage are you
aiming at it rising to. Once this is in place,
you have to mark an alert to exit and book your
profits. That would honestly be the best way to
average out your profits.
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8.Invest in industries
The key to this point is to understand why you
must invest in an industry rather than a company.
The idea is to spot the industry that would grow
rather than a single company. The moment you have
this in place, it makes it easier to stretch your
list to a few companies to invest in.
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9.Track and record your growth
Hire the best wealth management services to track
and understand the right growth that is happening
for the shares you have invested. It takes a fair
bit of research so it makes sense to have an
expert do it.
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10.Never stop averaging
Many of us tend to pull out of a share the moment
there is a dip in the market, in reality though,
a dip in the market is the best time to further
invest in the market and get your average
investment price right.
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