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10 Golden Money Rules To Become A Crorepati

In my experience, lack of financial literacy is the main reason why people have not made the best use of their money. Their potential to become millionaires has, therefore, remained unrealized. This is indeed unfortunate.

Worse, they have repeatedly fallen prey to fraudulent schemes. Time and again cheats have been able to defraud people of their hard-earned money.

If you want financial success, this has to change:

You have to become more vigilant about your financial matters.

For your ease and convenience, listed below are Ten Golden Money Rules that will be a catalyst to your millionaire-aspirations.

1. Invest in financial lessons before investing in financial assets
You don't drive without learning driving and getting a license. Do you? Similarly, you need to first learn how to acquire 'good' assets and manage them appropriately. Only then can you confidently and successfully invest your money.

2. Have a detailed Financial Roadmap
Without one you could easily get lost in the financial maze and may not reach your goals. Get yourself a financial GPS. As Bill Copeland has rightly observed "The trouble with not having a goal is that you can spend your life running up and down the field and never score."

3. You are unique. Hence, do what suits You
Blindly copying others is not a good idea. Your assets, liabilities, needs, desires, time-frame, risk-appetite are different from your friends, neighbours, colleagues, relatives. So naturally, your investment pattern too has to be different from them.

4. Keep things Simple
A simple term plan, a simple mutual fund, a simple medical insurance plan, etc. will work well in most cases. Don’t be under the false impression that only complicated products give better returns. No. In fact, such products often come with high fees, which will affect your returns. They are designed to make money for the product sellers, not you the buyer.

5. Start early, invest regularly and stay invested
Time makes money. Assets are merely the tools, which Time employs to make money for you. Longer the money stays invested (whatever may be the product... FD, equity, insurance, gold etc.), the more it appreciates. Even Einstein was impressed by the power of compounding.


6. Pay your credit card bills before the due date... always
This will, of course, save you lots and lots of exorbitant interest charges. Plus, it will also prevent needless splurging. It will ensure that you buy only what you really need.

7. Avoid Leveraging
A millionaire with debt is a fake millionaire. I am sure you wouldn't want to be one. Borrowed money can only be a source of burden. It may buy you many things. But enjoying them would be impossible, given the sword of debt hanging on your head.

8. Avoid exotic products and derivatives
They have been rightly termed as Weapons of Mass Financial Destruction. Look what happened even to the mighty USA. 

9. Seek guidance from professional financial advisors
Right directions will save you a lot in terms of time, efforts and money. So, if you need a helping hand, don't hesitate to seek expert help. Of course, you have to hunt for trusted advisors who have no conflict of interest. Your interest is their interest.

10. Beware of scams and scheming agents
If anything sounds too good to be true, it usually isn't true. Don't trust anyone. Triple-check every deal offered to you. Internet is a great tool to get right information... for free. Of course, don't believe the fake news.

This list should, however, be your starting point, not end-point. Educate yourself. Books, internet, seminars... you have so many avenues to choose from. After all it is your hard-earned money. So please do take good care of it.

In fact, I would go to the extent of saying that if you just follow one rule - KEEP THINGS SIMPLE - you will not go wrong with your financial decisions. The financial lessons will be easy, the road-map would be simple, you will not need any experts, you will avoid scams and exotic products, you will keep away from debt, you will not have any problems in paying your bills on time and much more.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

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