How To Become Incredibly Rich (Without Robbing A Bank)

If you're reading this, it's probably because you've had one too many failed attempts at bank robbery.

Or perhaps you've realized that, walking into banks with guns and gunny bags, aren't exactly the keys to financial success.

Well, you've come to the right place. Herein you won't find any blueprints for elaborate heists or tips on how to outsmart the police. Instead, this guide will help you build wealth the right way, without any need for ski masks, getaway cars, or illegal activities.

So, put down that black and white striped shirt, and let's dive into 10 actionable steps to amass wealth and create a financially secure future — without stepping foot into a bank vault!

1. Invest in Financial Lesson Before You Invest in Stocks

Before you start throwing money at stocks or mutual funds, like you're in a game of financial darts, maybe consider a crash course in 'How Not to Trip Over Your Investments 101'. A solid understanding of how to manage money and investments is crucial for long-term success. Trust me, your wallet — and your financial dignity — will thank you!

Actionable Tip: Take a course or read books on personal finance and investing to learn how to manage money wisely.

2. Seek Expert Guidance from a Financial Mentor

Before you dance with the rupees like no one's watching, get yourself a seasoned guide – because let's face it, even Bollywood actors need choreographers to create memorable hook-steps! Consider hiring a financial mentor or advisor who can guide you through the complexities of wealth-building. Think of it like hiring a coach to help you navigate financial decisions with confidence.

Actionable Tip: Find a Financial Planner who can provide personalized advice based on your unique goals.

3. Follow a Detailed Financial Roadmap

Let's be real, navigating money matters without a map is like trying to find your way through a labyrinth blindfolded – not recommended unless you enjoy bumping into walls and tripping over metaphorical financial banana peels! Establish a detailed financial roadmap to guide your decisions and ensure you're staying on track toward achieving your goals.

Actionable Tip: Set clear, achievable financial goals and break them down into smaller steps to make the journey smoother.

4. Don't Copy Others. Invest In What Works For You.

Why settle for being a copycat when you can be the Picasso of your own life? Embrace your uniqueness because, let's be honest, the world doesn't need another wannabe – it needs the unapologetically original you! Be authentic in your investment strategy. While others may get rich through real estate, stocks, or crypto, your success will come from doing what works best for you.

Actionable Tip: Research different investment strategies and choose the ones that align with your risk tolerance and goals.

5. Beware of Scams and Fraud Investment Schemes

The financial world is filled with scams and deceptive schemes. Avoid falling victim to "get rich quick" promises and always do your due diligence before making any investment. No one's going to give you the key to riches, while s/he earns a measly commission. Protect your wealth from fraud.

Actionable Tip: Always verify the legitimacy of any investment opportunity, and if it sounds too good to be true, it probably is.

6. Don't Borrow More Than What You Can Digest

Being over leveraged is like trying to impress at a buffet by piling your plate to the ceiling – it might look impressive at first, but it's a disaster waiting to happen, and everyone's just waiting for the crash! Avoid borrowing beyond your means, as it can lead to financial ruin.

Actionable Tip: Stick to a budget and avoid taking on excessive debt. If you need to borrow, do so cautiously and with a clear repayment plan.

7. Always Pay Your Credit Card Bills Before Due Date

Paying your credit card bills on time is crucial to maintaining a strong credit score and avoiding unnecessary late fees. Staying on top of your bills is one of the easiest ways to maintain financial health.

Actionable Tip: Set up automatic payments or reminders to ensure you never miss a due date.

8. Keep Your Finances Simple

In the grand opera of life, nobody wants to deal with unnecessary plot twists and financial acrobatics. Simplicity is key to success. Avoid getting caught up in complex, high-risk investments that are hard to understand. Keep your investment strategy simple, and focus on what you can control.

Actionable Tip: Use basic investment / insurance strategies like index funds / term insurance plans to keep things straightforward and low-maintenance.

9. Avoid Exotic Financial Products and Derivatives

Your money shouldn't be taking a vacation in the Bermuda Triangle of investments. As Warren Buffett also warned 'Exotic financial products and derivatives are weapons of mass financial desrtuction'. They often come with high risk and little reward. 

Actionable Tip: Say NO to derivatives such as Futures & Options, Credit Default Swaps, etc.

10. Start Early, Invest Regularly, Stay Committed

In the thrilling rollercoaster of wealth-building, it's not about the speed; it's about the persistence. Think of it as the 'slow and steady wins the financial race' strategy, with less sweat and more laughs along the way!  The earlier you start investing, the more time your money has to grow. Consistently invest, stay committed, and don't panic when the market dips.

Actionable Tip: Start investing as soon as possible, even if it's just a small amount, and increase your contributions over time.

Conclusion: The Path to Wealth Without Crime

Well, dear reader, we've reached the end of our roadmap to riches without ever donning a mask or casing a bank. And, if you're still contemplating robbing a bank after reading this, you might need to consult a different type of expert — one with a badge and a pair of handcuffs.

But for the rest of you, those who've embraced the idea that wealth doesn't require a life of crime, I raise my metaphorical hat to you. You've recognized that the true treasures in life are found in smart investments, hard work, and a dash of financial savvy, not in a bag of ill-gotten loot.

As you embark on your journey to financial success, remember the key lessons — investing in education, seeking expert guidance, and staying disciplined — we've covered. Whether it's investing wisely, saving diligently, or just finding joy in the everyday moments, it's all part of the grand adventure of life. And hey, if you happen to stumble upon a treasure map or a pot of gold at the end of a rainbow, consider it a bonus!

Finally, a few words of wisdom from my personal experience: Go forth, my fellow wealth-seekers, and remember that the richest people in the world aren't the ones with the biggest bank vaults, but those who've discovered that true wealth lies in a life well-lived, filled with laughter and the occasional smart investment.

Wishing you a future as bright as a vault full of gold, minus the risk of prison time.

10 Key Features of 'Standard Individual Health Insurance'

IRDAI (Insurance Regulatory and Development Authority of India) has recently issued guidelines on the 'Standard Individual Health Insurance Product'.

The market is presently flooded with numerous health insurance plans. Each offers unique features. As such, it is not easy for a common person to choose the most appropriate mediclaim policy.

Hence the need for a standard policy — common across all insurance companies — which will take care of an individual's "basic health insurance requirements". This will also simplify the process of policy portability among insurers.

Why Health Insurance Has Become Important With The Rise In Lifestyle Diseases?

Be it a younger adult, around 30s, or an older adult, around 50s, lifestyle diseases have become common in all age groups in urban India. Hearing about a 30-year-old heart patient was a rare thing, a few years ago.

But not anymore.

(Strange) Changes In Life Insurance, Pension Plans And ULIPs

Last month, IRDAI (Insurance Regulatory Authority of India) announced various changes in the Life Insurance Policies, Pension Plans and ULIPs (Unit Linked Insurance Plans).

These modifications are supposed to make these plans more customer-friendly.

Unfortunately, some of the amendments don't make practical sense and are rather pointless.

Third Party Motor Insurance Premium Rates Hiked

The insurance cover for your cars, two-wheelers and other vehicles comprise of two parts.

Briefly,
- Any damage to your vehicle is insured under what is termed as Own Damage Cover.
- Whereas insurance for damage or injury to a third person is known as Third Party Cover.

Interestingly,
- Own Damage cover is 'optional'
- But, Third Party insurance is 'compulsory'.

Insurance Quiz To Make You A Smart Policy Buyer

Insurance, particularly life insurance, is a very deceptive and dangerous minefield.

Instead of 'protecting' the policyholders and their nominees, it has in fact destroyed the personal finances of numerous people.

The key idea of the quiz below is to reveal the true nature of these policies, so that you don't become their next victim.

Why Super Top Up Health Insurance Plan Is A Must

'If we fall ill, we often have to pay a hefty medical bill.' This is the (unfortunate) reality of today.

Thankfully, there is a good solution... buy a health insurance policy.

But this has one problem. A decent insurance cover of Rs.15-20 lakhs — which will pay across simple to serious illnesses — will be too expensive.

Thankfully, this too has a good solution... buy a combo of basic + top up policy.

It's Not Either Mediclaim Or Critical Illness. It's Both.

The levels of pollution in the air are high. The levels of pesticides in food articles are high. The levels of stress in life are high. Hence, the chances of a person contracting some disease are high.

Further, the costs of medical treatment are also high.

Therefore, health insurance policy against medical related problems is a MUST. As I have stated earlier health insurance equals wealth insurance.

Do I Put My Money In Capital Protection Schemes?

We hate losing money. We want 'guaranteed & assured' returns. We don't like to take risk.

And since equity does not offer 'guaranteed and assured' returns (in fact, forget about returns, there are chances of losing the capital itself), that we find only a tiny minority of the investing population putting their money in shares.

Well, nothing wrong with it. If someone doesn't want to take risk, its' perfectly fine!

Children's Day Special: You Have To Do NOTHING Special

Yes, you read the blog title right. You DON'T have to do anything different for your child.

As I have repeatedly advocated, when it comes to your personal finance and investments...
... what is good for you, is good for your child too
... the word 'child' in any financial product is just a marketing gimmick.

In other words...
... do your financial planning as per your financial profile
... avoid the so-called 'child-oriented' insurance policies, investments, mutual funds, etc.

Right Insurance For Your Child Going Overseas For Education

Lakhs of students nowadays go abroad for higher education. And, once you have chosen the 'right university' and the 'right course' for your child, don't forget to buy the 'right insurance' too.

In fact, given the high costs and risks involved, this should be done simultaneously.

Listed below are certain salient aspects of a typical Student Travel-cum-Medical insurance policy.

Buy Only Term Plans... And Buy Them The Smart Way

Why you should buy only the Term Insurance has been discussed — by many others and me — many times in the past. (Must Read : My name is Insurance and I am not an Investment).

I now discuss how to do it the smart way.

I have divided the important points into two categories — Basic Tips and Smart Tips.

Insurance is a BAD investment, but GOOD loan collateral

You are well aware that loans, where you don't offer any security to the bank, cost a lot in terms of the interest rate charged. For example, your personal loans or the credit card outstanding balances.

As such, you can save a lot on the interest cost, if you can provide a fall-back option i.e. a collateral to the lender. I had, sometime back, discussed the 11 Salient Features of Loan Against Securities and why Loan against Gold is a smart idea indeed.

In this regards, insurance policy is another excellent product which you can offer as a security.

Surrender Your Insurance Policy (If It's Not Too Late)

It is a well known fact that most people buy life insurance policies (primarily moneyback / endowment plans and sometimes ULIPs) with investment being the sole or main objective. Life cover is considered as an add-on benefit.

It is a lesser known fact that moneyback / endowment plans give terrible returns. ULIPs too can be a bad investment, unless the applicable charges are low.

Therefore, the ideal situation would be to avoid insurance if you are looking for an investment option.

Thou Shall NOT BUY Life Insurance...

Lesson No.1: Life Insurance Policy is NOT an investment

Lesson No.2: Life Insurance Policy is NOT a tax-saving product

Lesson No.3: Life Insurance Policy is NOT a lottery

Then, what is Life Insurance?

Endowment Insurance Or Sukanya Samriddhi: The Right Choice?

If you had to choose an absolutely safe, tax-free and long-term investment for your daughter's marriage or education, would you choose an Endowment Insurance Policy or the Sukanya Samriddhi Scheme?

Obviously and undoubtedly, Sukanya Samriddhi Scheme!

Listed below are many reasons why the choice is a no-brainer at all.

Are You Adequately Prepared For The ‘Unforeseen’?

Risks are a part and parcel of anyone's lives. Most people live under the false impression that 'It won’t happen to me'. Therefore, they don't take adequate measures to prepare against the tragic incidents such as death, natural calamity, critical illness etc.

Apart from the mental trauma, these can play havoc with ones' finances.

Fortunately, a simple planning can go a long way in protecting you and your family against hardships in many such unfortunate events.

I Have A Live-In Relationship With My Investments

In human relations, getting married and living together till eternity is a good idea.

However, being wedded to your investments and staying with them forever is not such a good idea.

Each investment has its pros and cons. Therefore, at a certain stage in your life, it may be a good investment for you. As they say, the two of you may be compatible. But as your financial profile changes, the same investment could turn bad and become a liability.

Surprise! IRDAI Cuts Third Party Insurance Premium Rates

As you would be aware, Insurance Regulatory and Development Authority of India (IRDAI) has been repeatedly increasing the premium rates on the Third Party Liability Insurance for the last 4-5 years.

Not only that, on each occasion the increase has been quite sharp and steep.

Thankfully, and quite surprisingly, for the year 2018-19 IRDAI has announced a cut in the premium rates for certain categories of vehicles. And, for other categories too the increase is mainly nil to moderate.

Why 'Return Of Premium' Term Insurance Is A Disastrous Idea?

You are well aware of how your vehicle insurance works. If, during the year, your vehicle suffers any damage, the insurance company pays for the repairs. But, if nothing happens, you get nothing in return for the premium paid (except for the mental satisfaction that your vehicle was protected).

A normal Term Insurance Policy works on exactly the same lines. In case of any unfortunate eventuality, your nominee(s) receive the Sum Assured from the insurance company. But, if you survive the policy tenure, you get nothing in return for the premiums paid (except for the mental satisfaction that your family was protected).