Which things you should consider before the start of your wealth journey?

Wealth is one of those crucial things in everyone’s life that helps fulfill their dreams in a desired way. But how many of us plan it appropriately? I sadly say very few. Many of us started their wealth journey without understanding some of the significant facts which will make their journey hassle-free and joyful.

So, today we shall get acquainted with the things which one should consider before the start of one’s wealth journey. Let’s get started!

Cut your coat according to your cloth:

If you want to be financially independent and create wealth, then you need to plan it at your early age of earning. It would be best to analyze how much you make, how much you spend, and how much you can save from your earnings before receiving your first salary or first income. We do precisely the opposite of it that we pay first and save later, which is wrong. The things on which you prioritize your earnings have a massive impact on your future financial life.

Don’t take emotional decisions:

Don’t make emotional decisions in your finances. Take some time and decide as per your financial goals. While practical decisions are generally beneficial in the wealth creation process, emotional decisions can be detrimental to you. Let’s take one example. It is inappropriate to take out a car because your friend bought the car when you don’t need it, and you can’t afford it. Apart from petrol and maintenance of the vehicle, you have to repay the loan and the interest on it from your monthly income. It means that your expenses increased exponentially, and your savings and investments decreased. It affects your future financial desires and thus independence. Prefer to be rich in being rich and looking rich. Emotional decisions increase your expenses, so avoid them.

Budget your expenses:

Understand the difference between necessity and desire. Don’t confuse your necessary expenses with your desires. Because it costs very little to meet the need, but it can cost a lot to fulfill the aspirations and desires. So at the beginning of your earning life, keep your lifestyle simple by meeting the minimum needs so that your savings and investments will continue. You will be able to fulfill your desires and aspirations in the future.

Set your goals:

Before starting your wealth journey or making an investment, you should be clear on why you are doing so. Everyone’s investment goals can be different. Some want to create wealth for their children’s education; some want for their children’s marriage, some want to create wealth to live a happy life after retirement, some like it for an abroad trip or to take a new house or to save a tax or for any other purpose. Similarly, everyone’s goals may be different. Thoroughly review your short term goals and long term goals before you start investing.

Understand your Investment:

Everyone has their unique wealth journey, so don’t compare it with anyone else. The investment product which is perfect for your friend, not necessarily is ideal for you too. Understand your requirements, analyze your income, budget your expenses, and choose the right investment product for you according to your financial goals. Don’t start your investment blindly because the right investment product helps you achieve your target in a desired way and make your wealth journey hassle-free, where the wrong investment product disastrously spoils your financial dreams.

If your wealth journey has not yet started, then start it with keeping these points in mind, and if you are already on a wealth creation journey, then review it once again as you didn’t miss out on any of the above things because it’s always better to be late than never. I hope this blog will add value to your wealth creation journey; let me know what you think!!