7 Things to do to become Rich

From the Book Richest Man in Babylon

1) Save Minimum 10 Percent of Your Income Every Month

2) Control Thy Expenditure

No matter what you earn, you will have an expense that will amount to what you earn.

For example, if you earn 1 Lac, you will any have an expense of 1 Lac. Although most of the expense will be a Desire and not a Need.

Spend only on NEEDS and avoid spending too much on desire.

3) Multiply Your Income

Invest the saved money. It could be Mutual Funds, FD’s, Equity – anything that suits your style of Investment

4) Do Not Lose Your Principal Amount (When Investing)

It’s important to understand that you should avoid investing into Vehicles where there is a higher chance of losing even the principal amount.

For example, Investing in Equity yields High Returns as well Low Returns, While Mutual Funds have comparatively lower yields.

In a way, Mutual Fund offers more security regarding protecting the principal amount compared to Equity and higher returns compared to FD.

5) Buy a Home

Home is an Important Investment. If you do not have a Home, it should be on top of your list.

Why? Because, it falls under shelter – and is a primary Necessity to live a good life.

6) Think About Your Future You (60’s – 90’s)

Start investing into some source so that when you become Old and little inactive, you still have a regular source of income.

7) Increase your Earning Skill

Invest in Yourself and improve your skills so that you can earn more. Today, if you know X thing, try to invest in some training course or exercise that will help you gain Y Skill. And then with those skills, you can increase your earning.

For detailed understanding of these rules, please feel free to comment below or read the book.

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