If you've ever thought, "Financial planning is too complicated," we're here to tell you: "You're wrong!"
Wealth management simply means managing your money to reach your financial goals.
For example, from managing a shopping addiction (guilty) to calculating household expenses to analysing the red in your investment portfolio, all of it is wealth management!
It doesn't matter how much money you make, it always comes down to how well you manage it, which boils down to this simple equation:
As you can see in the equation, the way to create wealth is to minimise taxes, reduce expenses and maximise your savings/investments!
So, wealth management isn't complicated- it just requires discipline, commitment and patience. But remember in addition to this you also need clear financial goals i.e. you need to have an idea of where you want to be financially.
Note down some specific financial goals you'd like to reach by the end of the year.
Your goals can be anything - but make sure they have these 3 components:
1. An event that takes place in the future
2. A time period that acts like a deadline
3. The amount you need for the event to take place
E.g. Buying a house (event) in 5 years (time period) costing Rs. 1 Crore (amount).
Pro Tip: Make sure your goals are ambitious yet realistic! Becoming a millionaire by the end of the year might not be feasible for us all (but how we wish it were!).
Now that you have goals, create a plan and stick to it.
Best of luck!