What if your grandfather invested in some post-office scheme? What if he didn’t sell that land? What if he saved a little every month instead of spending frugally? What if he invested it somewhere instead of lending money to your uncle?
We all have had ‘what ifs’ like this. After all, it’s true that if started earlier, wealth-building would have better results. However, there’s still time. In this blog, we will guide you on how you can build wealth over time with the help of term loans online in India.
According to a recent survey conducted by Saral Credit in 2023, 67% of Indians have taken a personal loan at some point in their life. So, do you also need a personal term loan to build wealth over time?
Follow this blog, and you will get your answer.
What Is Wealth Building?
“Boond Boond se hi sagar bharta hai.” In your primary classes, have you ever heard this phrase?
If not, then you must remember it now. Do you know why? It’s because, as an average youth, you sustain on salary; you need to know the proper definition of wealth building.
Wealth building is a long-term process. Wealth building means creating wealth and increasing your funds by saving, investing, and taking loans. However, building wealth is not possible without gaining financial literacy.
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Importance of Financial Literacy in Wealth Building
Do you know the meaning of term loans? If not, how will you know whether you need a term loan or not?
If you know the basic definitions or meanings of certain financial terms, then you can invest more confidently. If you have zero to no financial literacy, then you can start with these terms: budgeting, debt management, economic resilience and stability, etc.
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Importance of Long-Term Strategies in Wealth-Building
“Roz ka kitna kharcha hota hai?”
Have you ever calculated how much you spend daily? If you are not nodding to this question, then you are in great trouble. Let’s break down your salary structure:
Let’s suppose your salary is ₹15,000/month. And you spend ₹100 on your daily commute Apart from this, you spend ₹300 on other things.
After doing some basic calculations, we can deduce that you earn ₹500/day and spend ₹400/day. With a saving of just ₹100/day, do you think you are stepping towards wealth building?
If you are planning to build generational wealth for your future generation, then it’s important to break down your current financial situation. You need to establish a financial goal for yourself. For example, you can decide how much you want to save per day or month. And then you can find ways to save that much money.
Top 3 strategies to build wealth
There is no right strategy to get rich. However, there is 1 mantra that can help you get rich.
“Parampara, Pratishtha, Anushasan.”
Wealth building is a long-term process. So, if you plan to invest in some financial product and get rich overnight, that’s not possible.
- Strategy to earn more: How will you invest more money if you are not earning more money? After all, you can’t save what you don’t have. You need to put in place, a plan to earn a better salary. Secondly, you need to diversify the sources of your income.
- Plan your future: Are you planning to get married soon? Are you planning to buy land or a house? Are you planning your retirement? Or are you planning for your kid’s education? Before investing and thinking of building wealth, you need to decide your goals.
- Save money: You need to cut down on frugal spending. When it comes to those regular night outs and visits to the bars and clubs, you have to start saying ‘no.’ Secondly, you should develop a budget for your daily expenses. You will help yourself if you decide how much you want to save daily.
Can term roles help in building wealth?
Although term loans or personal loans are debt products, they can help you build wealth over a longer period. For example, let’s suppose you have a credit card outstanding. Consequentially, you will have a low credit score. Now, when you apply for loans in the future, you will be charged very high interest rates.
However, if you opt for a term loan and clear your credit card outstanding, you will have a good CIBIL score. As a result, the rate of interest will be less, and you will get a better deal when you take loans.
Conclusion
“21 Din mein paisa double.”
Things like this can only happen in movies. Get-rich-quick schemes can lure you into the trap of ill-investing. However, if you want to build financial wealth, you need to take the ‘road not taken.’ You have to invest your money, earn more money, invest more, and spend less.
Do you agree that wealth building is a long-term process?
Tell us your views in the comment section.
