Ways to get rich

 Learn to manage money wisely.

I ask you a simple question. Do you want to be rich…? You might wonder what kind of question that is. Because of course the answer is yes. Everyone wants to be rich. Although money is not everything, money plays an important role in our lives. If you have a good amount of money, you can lead a comfortable life. Having pocket money is even more necessary in today's uncertain times.

Many of us have dreams like traveling the world, owning a big car or a house but need money to fulfill them. So everyone wants to be rich but the truth is that only few can be rich. Do you want to know why? So keep reading the article to know the secret of getting rich. Lack of financial education is the main reason why some people become rich and others remain poor throughout their lives. People earn money by working hard in job or business.

But what they do with their hard earned money matters most. You can earn millions every month but if you don't know how to manage your money you will never become rich. Spending money unnecessarily can lead you to debt and financial crisis.

And only financial education can save you from this danger. Your first and most important task is to save 10 to 15 percent of your monthly income. You will divide this accumulated amount into three parts.

1. Emergency Funds 

Whenever an emergency situation arises, create the fund in such a way that you can withdraw cash money from this fund and use it.

2. Slush Funds.

These funds will help you survive for three to six months if you ever get sick or lose your job.

3. Retirement Funds.

You will invest this money in a right place so that this money keeps growing till your retirement. Assume you live to be twenty years old. Accordingly, you have to save money according to a plan by calculating how much money you may need after the reinvestment. After deciding how much money to save, your task is to determine how much money you will spend each month.

You can use 80/20 principal in case. Identify where you are spending 80% of it. It is usually behind food, rent, electricity bills etc. The remaining 20 percent of spending you might spend on things of unimportance. Which you can minimize if you want. So I am not talking about giving up all hobbies. You should enjoy life.

But try to keep a balance main and spend money only on useful things. Anything that goes down in value day by day is called Liability… and anything that goes up in value day by day is called Asset… Your next step is to invest your savings carefully. A car is a liability because its price keeps decreasing day by day. So when you've saved as much as you need to, you're done.

Buy a car only then or a great way is to buy a second hand car or rent a car instead of buying a new car. Although own house is seen as an asset. However, it is a huge investment so only take this decision if you have enough savings to spare. Not only investing early but investing in the right place is the only secret to becoming rich.

Now the question is where is it better to invest money, many people are afraid to invest their money. But you have to understand that investing is the only way through which you can make money with money. That means you don't have to do any work to earn money here. Your money will work for you. So you should not be afraid of investing money, you have to take calculated risk.

From bank accounts to stock market, there are many options available today to invest money. You can also invest in bonds where you lend money to a company and if that company makes a profit, you also make a profit. If you are confused about where and how to start investing then you can invest in mutual funds.

Your invested money will be divided and invested in different areas. As a result, the risk will also be reduced. But before investing money you must have a basic understanding of how the investment world works. For this you can take the help of a trusted financial advisor. If you want you can take help of Zerodha for this.

If you want to know more about it, you can search on Google. If you go to Zerodha and submit your name and mobile number, Zerodha team will call you and they will personally guide you to make your investment decision. But remember one thing too greedy weavers ruined. If you run blindly after money, you will be in danger. Take a thoughtful decision and invest for the long term.

If you can do this, you will become rich very soon. Financial education is a superpower of the present time, so keep learning something new every day. These things I learned from the book Millennial Money Makeover by Conor Richardson.