Everyone wants to be wealthy, but only a few attain it. It is unfortunate that personal finance management is not a topic in our school curriculum that most people grow up without any good knowledge of managing their income and expenses well to build wealth. In fact, there are many ways to effectively manage personal finances and build wealth, but there are no shortcuts for the same. It is always to be slow and steady to win the race of wealth building.
You may also come across many schemes claiming to make you rich overnight, but this is too good to be true; things are not genuine. There may be someone who is making wealth out of it, but it is not through the authentic and trustful way of economics but through fraudulence. Thousands of people lose their hard-earned money by falling prey to those fraudulent investment scams. So, in order to stay away from these and build your savings and investments, here we will discuss a few fundamental pieces of advice by an expert.
Kavan Choksi’s step-by-step approach to personal finance
1. Review the expenses
People tend to spend money on a multitude of things, but many of them usually do not keep track of the same. Kavan Choksi suggests that the first step anyone should take in their efforts to manage personal finances is to have a close look at the expenses. Once you look at it closely, you can find many such areas where you will be able to save money and convert these into investments. For example, you can cut your subscription to an unwanted streaming channel that you no longer use.
2. Stay disciplined on spending
It may be tough to be disciplined on your spending, but this is an important approach to improving your personal finances. Avoid impulse buying when you are online or in the cozy shopping spaces.
3. Invest and reinvest
Building wealth is an art. To get the best returns, you need to be aware of various investment vehicles and take a balanced and well-calculated approach to investments. There are high-risk, moderate-risk, and low-risk investments, and you have to be aware of all the risks and returns to take a calculated approach.
4. Pay off your debt
If you have debts like credit card payments or mortgages, it is important to have a proper plan in place to pay them off in time. In the long run, defaulting these may put in an adverse situation and complete financial breakdown. To pay it off, you can also take the assistance of plans like debt consolidation or loan porting to be on track.
5. Always stay organized
To improve finances, you always need to be organized. Know the concept of budgeting and debt management, and keep yourself updated about the financial market shifts and the latest avenues of investments like cryptocurrencies and NFT, etc. If you strictly follow and ensure all the above measures, it means you are well organized and on track with personal financial management.
To conclude, as Kavan Choksi points out, ensuring personal financial improvement is not easy, but your efforts are surely worth it. Strictly following the above tips will surely help you get started and keep going to build your personal wealth and live a happy and rewarding life.