How to become a crorepati? Check these 5 money making tips

The first and foremost way to become a crorepati as early as possible is to invest right. The power of compounding interest can take you miles ahead in a quick succession.

The first and foremost way to become a crorepati as early as possible is to invest right. The power of compounding interest can take you miles ahead in a quick succession. PTI

Who doesn't want to be crorepati! Well, it may sound nearly impossible to some people but becoming a crorepati or a multi-millionaire is not an impossible task. Investing your money smartly, cutting on some unwanted expenses and a change in lifestyle could make this dream true. Certified Financial Planner, Poonam Rungta told Zee Business Online, ''Sometimes people lose on their patience, when they do not get returns on time. However one should understand that returns from investments require patience and trust. Becoming rich could be much easier if you work smart and hard.''

Many of the middle-class individuals think that investment is the only way that carves the way to millions. Well, the investment could certainly be the best option for becoming rich but it has to have a mix of diversified smart investments, well planned financial budget, a stable lifestyle, less debt and stable income. Here are 5 tips to become a crorepati in India:

1. Invest your money:

TRENDING NOW

The first and foremost way to become a crorepati as early as possible is to invest right. The power of compounding interest can take you miles ahead in a quick succession.

''Investing requires smart decisions at right time. The person should know what is right for their financial goals and appetite. What was right for your friend may not be a right option for you to invest. So one should always seek advice from an expert before investing,' Rungta added.

2. Stop buying unnecessary luxury stuff:

Its a habit of middle class individuals to buy luxurious goods like expensive watches, costly accessories, out of budget home, luxurious cars and gadgets. These expenses can dig a hole in your pocket and resist you become a crorepati. You can look for budget friendly car, mobile or accessories which can help you save some money for future. The worst part of these expenses is the EMI and loans, that never really spares you in a short span.

3. Diversification is important:

Almost every rich individual who has earned millions of rupees in life would agree to fact of investing in diversified manner. The diversification is equally is an important aspect of investing right. It gives you exposure to many options like real estate, stock markets, mutual funds, commodity like gold and silver, government schemes, bonds, debentures etc.

4. Have covers for emergencies:

A human life is subject to risk of life. Anyone can fall under urgency of medical or any other risk, reducing your chances to become crorepati. Rungta further added, ''One should have a correct insurance covers like medical insurance, life insurance and other necessary covers in order to safeguard their emergency.''

5. Make a budget:

A budget is a smart way to progress in longer time. Budget ensures you to move smart as per plans. One should have a proper monthly budget to spend, as it ensures no unwanted spending. A budget acts as a map to save more, spending only on necessary items.

TAGS: