Onam, the festival of harvest, is celebrated with great fervour. Let this festival inspire you to move ahead in your financial journey to harvest wealth. Optimise your assets to grow financially and work towards a bright and secure future. Here's how you can kick-start your wealth harvesting endeavour this Onam.
Tips to harvest wealth this Onam
If you want to harvest savings and wealth, you can follow the tips given below:
Save smart:
Simply saving portions of your income by stashing them away in a safe is not enough. Although doing so will help you save money, it will not allow you to grow your wealth. However, if you save your money by parking your funds in a Savings Account, you can earn additional income on your money. A new Savings Account, opened on this auspicious day will allow you to earn income by providing interest at a set rate. Plus, a Savings Account is easy to use and allows you access to various other products and services too.Spend wisely:
The key to growing your wealth is keeping track of how and where you spend your money. Thus, it is best if you start tracking your spending habits. Doing so will help you understand where you can save by cutting down on unnecessary expenses. That saved-up cash can go into your Savings Account or investments. You can also use this knowledge to set a budget. Allocating funds will help you limit frivolous spending and save more. While it may not seem like much in the beginning, all the savings will add up to make a substantial sum.Invest:
Today, one of the quickest ways to grow your wealth is to invest in a variety of instruments. Try to set financial goals for your life, both short and long-term. This will help you pick investment instruments suitable for you. For instance, you can opt for mutual funds to diversify your portfolio and invest across asset classes. If you have the disposable income, risk appetite, and know-how, you can even try your hand in the stock market. You can open a Demat Account and get started.Compounding:
While investing, make sure to optimise the power of compounding. Essentially, compounding refers to the process of reinvesting the earnings from an investment. This adds to the principal amount and increases the interest earned with each passing year. You can invest in instruments like Fixed Deposits, Provident Fund (PF), Public Provident Fund (PPF), and others to make the most of the power of compounding to grow your wealth.Save on tax:
Another way to grow your wealth is to reduce the amount of money you end up paying as tax. Thankfully, there are legal provisions and instruments that help you do so. For instance, the Income Tax Act, 1961 allows you to avail of deductions on Health Insurance premiums, Home Loan repayment, etc. Plus, you can invest in instruments that provide tax-saving benefits. For example, a PPF is tax-free.Advice:
Lastly, if you find yourself in need of advice, seek out a professional wealth manager or financial consultant. Such professionals have expertise and experience that they can use to guide you on a financial path suitable to your needs. They can suggest an investment plan or instruments that would align with your investment horizons and risk appetites.
Being judicious about your finances can change the way you look at and utilise your money. It can help you take a little and turn it into a lot over time. Take this Onam as an opportune occasion to apply these tips and aim for maximum wealth creation and growth. Opt for smart financial practices and create a brighter future for you and your loved ones. Happy Onam!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.