Wealth is something everyone wants to earn. You want to earn, I want to earn, but often we don’t understand that every year we need to change our strategy if we want to create wealth. In 2024, what will be my strategy that I suggest to you, which can help you build substantial wealth in the future? We will discuss this in today’s Article. In this Article, I will talk about five major points that will help you in order to create wealth. So, let’s get started.
The first thing you need to understand is that wealth is not about talking about being rich, not talking about money. I’m talking about wealth. You cannot create wealth only by working. If you think all day that I am doing a job, I am doing business, wealth will not be created.
Wealth is created only and only through investing. Now, remember, when I say investing, I’m not saying that you have to invest only in equities. You have to invest in your health, you have to invest in insurance, you have to invest in real estate. So, you have to invest in different parameters based on your specialization. But, yes, wealth is created through investment. You need to understand that you must have seen many people who work very hard, work with a lot of dedication, but still, they cannot create wealth in their lives. You need to understand one thing that you people work hard, earn a few lakhs or a few crores, but major wealth you will never be able to create.
You need to understand one thing: have you ever thought why the world’s biggest and most famous millionaires go broke at some point? Why does it happen that those who earn millions and millions of dollars suddenly go bankrupt? As an example, let me tell you about the world-famous boxing champion Mike Tyson. You must have known how brilliantly he played boxing, but what you may not know is that he earned around 400 million dollars in his entire life. However, after a few years, when he checked, he was in debt of 23 million dollars. So, you need to understand that money is a tricky thing. It’s an investing thing. Now, I’ll tell you today about five things that you should keep in mind because without strategy and without discipline, you will never be able to create wealth.
The first thing you need to keep in mind in 2024 is investment-related. You have to invest. Age matters. When you are young, it’s often thought that after working, when you earn a lot of money, then you will think about investment at the age of 40 or 45. You will think about tax saving, insurance, and everything related to investment. Which is incomplete, wrong. When you are young and when your inflow of money is there, when you invest it quickly, what happens is that it helps a lot in your compounding process.
Look, when you cut unnecessary expenses in the initial stages, and you understand the value of money, it’s like a simple example. If you eat out every week, and somehow you save ₹1000, and invest it in SIP or Mutual Funds, it will help increase your wealth over the next 20 years. Without thinking much, this may seem small, and spending ₹1,000,000 every week might seem insignificant, but saving a portion of it somehow through SIP or investing will help increase your wealth over the next 20 years.
Without thinking much, many people believe that for investing, they have to sit separately, devise strategies separately, which is not necessary. If you sit peacefully, you can invest very well. So, the first investment age, make age possible when you are young.
The second thing you should do in 2024 is to take a term insurance. See, often I have seen many people try to avoid term insurance just by hearing its name. Insurance also has different types, like many people avoid health insurance without realizing that in India, medical costs are very high. In fact, you may have seen that medical costs are quite high, and there is no bargaining when it comes to medical costs. When you go to buy vegetables, there is some bargaining there, but there is no bargaining when it comes to medical costs.
In fact, you may have seen that medical costs are quite high, and there is no bargaining when it comes to medical costs. When you go to buy vegetables, there is some bargaining there, but there is no bargaining when it comes to medical costs. And when you are admitted, you realize in real life that, ‘Oh my God,’ or maybe someone wishes you ill luck, and when you are admitted, you understand that, ‘Oh my God, all our money is running out.’ For this, it is very important to take good term insurance, which is going to be helpful for you and specifically.
“Let’s say you are a sole bread earner in your family, meaning you are the only one with a decent job in your family. So, if any problem arises and, God forbid, something happens to you, your entire family will face economic difficulties. In such a situation, who can help you? I cannot help in this, but policy bazaar can. You can compare and buy from Policy Bazaar, and with 20+ insurers, you can get a term plan where you can get coverage up to 80 years. Here, you can get a ₹1 crore plan for just ₹73 per month, and the coverage can be up to 80 years.
They cover 59 critical illnesses with the help of a rider. Policy Bazaar, being an online portal, saves you additional costs on premiums. When you purchase offline, agents usually charge extra. There are rider options for additional coverage, such as accidental cover. Additionally, you get tax benefits under Section 80C. You can get up to a 10% discount online. The best thing is 24/7 claim assistance. Whenever you face an issue with the claim processing, a recorded voice ensures that there is no misselling, and dedicated claim support is available. Also, Policy Bazaar’s advisors are available in your city to help you. So, if you want to take term insurance today and secure this area in 2024, check out the link in the description.
Another thing you need to keep in mind in 2024 is wise spending. Now, what does wise spending mean? When people receive money for the first time, they often start spending blindly, like in the movie ‘Pirates of the Caribbean,’ where there was a star, and the same thing happened with that star. What did they do?
Like when they started earning a lot of money, they began drinking, indulging in excesses, which is completely wrong. Understand a simple thing: if in today’s time, you give ₹1 crore to a rich person who is already rich and ₹1 crore to a common man, it’s obvious that the rich person might become even richer, but the common man could end up back at zero. An aesthetic example of this mindset is KBC. The person who won there earned a lot of money, but in the next five years, lost it all. Understand the mindset – those who become rich for the first time will say, ‘Buy this car, buy that bungalow,’ and so on. But those who have been rich for a while know the power of compounding, the power of real estate. I’m not saying they will enjoy it, but they will spend wisely.
Now, let’s move on to the next point related to assets. Buy assets that appreciate. We all have heard about rich dad poor dad, and one thing written there is ‘Boss always tries to buy assets.’ But don’t buy just any assets. For example, if you buy a flat in a metro city, there’s a high possibility that it will depreciate. On the other hand, if you buy a plot, it may appreciate. In this debate, we’re not discussing whether you should have your own house or not. Let’s not talk about that, but the simple point is, if a car stays at your house, it becomes a liability, but if someone else pays rent for that car, it becomes an asset.
I’m not saying to measure your entire life on the basis of assets and liabilities, but considering assets and liabilities in the race, even the author of Rich Dad Poor Dad was measuring himself. However, recently there was news that you might be aware of, so you need to understand one point. It is very important to be aware of your day-to-day expenses, month-to-month expenses.
If I am buying an iPad, it is beneficial for me because, as a creator, I want to create good videos for all of you. But if a seventh-grade student, who doesn’t have any plans, insists on taking it just to watch movies, then according to me, it’s a dozen make sense. If, after a job, he feels that his professional work will become smoother with it, then he should take it. That is definitely going to help him out. So, remember, buy assets that appreciate in value.
And along with that, the most important thing you need to remember in 2024 is to understand how the tax system works. You need to understand how the tax system in our country works in different ways. For example, if you create a corporation, it is taxed differently, and if you are a salaried individual, it is taxed differently. When you trade in the stock market, its taxation is different, and when you do intraday or short-term capital, its taxation is different. Wise individuals are those who understand this tax system without trying to evade taxes. They make themselves efficient so that they can process it well.
If you start earning a lot of money through your business, you gradually move towards a corporate structure because there are more tax benefits there. There you can claim expenses, the same thing that you couldn’t do before. You people definitely should check out our channel if you are not a C.A. Because I have made some Article related to tax that will definitely help you out in 2024.
I hope you liked today’s Article. If you liked it, don’t forget to like, share, and keep learning, keep growing, keep investing, and keep trading.