FINANCIAL SECRET: Today people are running behind money to create their wealth. Everyone has different strategies to create wealth. Some people think the investment in Real Estate is your actual wealth or some people thought investing in stocks is their wealth. Some others thought more the money in a bank account is your wealth. But the common in all is everyone wants more. More money, more property, more no. of shares that shows you are wealthy.
There is a big financial secret behind thinking about an immense amount of money. We all wanted to be rich but nobody able to define rich. If you thought with ₹50lacs in your bank account you become rich, then what about those who have ₹1cr in their account. In that case, they are super-rich people. Even, more people have more than ₹100cr. Then those people are super-2 rich people. That is the thinking who limits themselves for less.
Here, is the financial secret about thinking about big money. The person who thinks about 100crs has ₹100cr., who thinks about ₹1cr. Have ₹1cr and who thinks about ₹50lacs have only ₹50lacs in their accounts. It is just the mindset of a person. What you think and decide your goals you achieve it. So, already set your targets high especially in case of money. To have an immense amount into your possession you must have an Entrepreneur mindset.
That is the reason only 1% of people have 99% wealth of the world & 99% of people have 1% wealth of the world in their possession.
FINANCIAL SECRET IN MULTIPLE RETURNS
If you are focusing on creating your wealth then you must know this financial secret. That is the simple secret that everyone knows and use in day to day life as well. If you are building your assets, then you must search for those instruments that can give you multiple returns. If you are in a job and saving your money in a bank account or fixed deposit, then you are just saving your money for a rainy day or a bad day.
It means when you face some awful situation where your amount liquidates very fast, in that case, if your money in the bank account you left nothing after. (Read Best Income Generating Assets).
On the other hand, if you choose a better instrument that gives you multiple returns then you need not worry about your rainy days. Multiple returns are the necessity to create your wealth or Net worth. (Read Net Worth Tracking – Why it is important?)
SPEND MONEY TO MAKE MONEY
Only a few people know about the financial secret behind spending money. After all, money is made to be spent. You must stick this thought with your mind that, “to have money, you must spend money”.
People desperately hold on their money, due to this sometimes they just miss the opportunity to get multiple returns. I am the best example of this.
During March and April 2020, when the country hits lockdown due to COVID-19, the share market also hitting lower circuits day by day. Few big companies also hitting low values of their share price out of the top companies is “RELIANCE.”
I know how Reliance is working and what their plans to get debt free themselves. I had a close watch.
During Lockdown, RELIANCE share price ht around ₹780-800/per share from ₹1300 per share. And at that time, I am just a click away to buy a good amount of shares of RELIANCE. But I didn’t purchase it. Even more, at the same time, I was recommending to bought RELIANCE a few of my friends. I don’t know either they purchased or not, but I didn’t purchase it. And now, we all know what RELIANCE did in lockdown & now its share price is more than ₹2000/- per share.
I don’t know the financial secret and miss the opportunity because I was desperately held on my money at that time.
You should take a chance by spending your money on opportunities where you may get multiple returns.
CLOSE WATCH ON YOUR FINANCIALS
There is a financial secret behind money that, “if you can’t manage $1000 then you can’t manage $10000”. We often see people who won lottery tickets & get rich quick, get back to the same level where they were before they won the lottery. That happens because they aren’t able to manage their finances and not able to manage because of financial literacy. (Also Read Are You Financially Educated?)
Having a close watch on your finances and understand the financial language is always giving benefit for creating your wealth. If you understand this financial secret you can easily create your wealth. (Read Power of Compounding to Create Wealth).