Grow Your Wealth In 4 Steps.

In today's world, growing your wealth can be hard. Especially due to the pandemic, people have trouble even earning money. Inflation, increasing-price rate, sustainability are issues we all face. At such times, we need a good strategy to grow our money.

1. Keep track of your expenses.

Almost 90% of the people fail at this one. Many don’t understand how important it is to keep track of your expenses. It’s a total game-changer. I would advise nothing but this step and you would be ahead of the majority of the people.

Keeping track of your expenses will give you a clear vision of what you do with your money. Write down every single cent or dollar you spend on something. For this, there are many apps nowadays but I personally use a book. A small book which you can carry anywhere can help. Track your expenses for at least 2–3 months or even more. Then calculate the average. That average is your monthly spending.

Once you know where you spend your useless money, you can go on to step no. 2.

2. Calculate all the expenses.

Once you have all the data you need, you will be hooked on how carelessly you spend your money. Some of which is just some useless pieces of stuff. Once you gain the clarity, you are all ready to set your financial goals. Now here people can differ. Everyone can have a different goal. For example:- Saving more, investing more, buying a house or car, etc. But do have set plans like ‘ In 1 year I’m going to save __ amount for __ .’ Always remember you can start it in May, June, July, it doesn’t matter. You can start your year anytime.

Then set your monthly goals. For this, you can make a graph as you wish. here’s an example:-

Needs- 60%

Wants- 10%

Saving- 15%

Investing- 15%

It can differ from person to person. I advise you to save and invest at least 20%. I acknowledge the fact that not everyone can do that. Setting yearly and monthly goals will help you be focused and committed. You might fail at first, but don’t lose hope, it needs practice.

3. Invest!!

Investment can change your life. It can literally change your life! I was unfamiliar with the concept of ‘growing your wealth while you sleep’ because it sounds so scammy. You might have heard about people becoming millionaires through these investments. But not everyone can take that level of risk. And to be honest, you don’t need to do that. You can play safe.

Look for more long-term investments than short-term ones. Most importantly, have life and health insurance. They are essentials.

Investments can be of different types like- Real estate, mutual funds, index funds, cryptocurrencies, stocks, shares, etc. It depends on you what you want to invest in. It would definitely need some research. I would recommend buying a low-cost S&p 500 index fund for beginners. (I’m not an expert, please do your own research.)

“In my view, for most people, the best thing is to do is owning the S&P 500 index fund,” Warren Buffett.

4. Practice and Patience.

Don’t expect your wealth to grow overnight. It only happens to 0.01% of people. Rather, improve your financial knowledge and bring it into practice. Always remember, you will find many videos, sites, and articles on ‘how to grow your wealth instantly,’ but most of them are rather fake. Be good with your sources. Take from all but trust few. Be selective from whom you consume information.

Here are few YouTubers who help me improve my financial knowledge:-

Mark Tilbury.

Graham Stephan.

Nate O’Brien.

Meet Kevin.

Investment With Rose.

Thank you for reading my blog post. Hope it helped you. Please look forward to more posts like this.