How to Become Wealthy

#1: Change the Way You Think About Money

Each Rupee you save is like an employee. Over the course of time, the goal is to make your employees work hard, and eventually, they will make enough money to hire more workers (Money). When you have become truly successful, you no longer have to sell your own labor, but can live off of the labor of your assets.

Think Money is like a person, is a living thing. When you wake up in the morning and go to work, you are selling a product - yourself (or more specifically, your labor). Realize that every morning your assets wake up too and have the same potential to work as you do

#2: Develop an Understanding of the Power of Small Amounts

The biggest mistake most people make is that they think they have to start with an entire Napoleon-like army. They suffer from the "not enough" mentality; namely that if they aren't making Rs 5,000 or Rs 2,50,000 investments at a time, they will never become rich.

Remember entire armies are built one soldier at a time; so too is their Fund.

#3: With Each Rupee You Save, You Are Buying Yourself Freedom

When you put it in these terms, you see how spending Rs1,000 here and Rs. 2,000 there can make a huge difference in the long run. Since money has the ability to work in your place, the more of it you employ, the faster and larger it will grow

If you have any source of income, it is possible for you to start building wealth today. It may only be Rs. 50 or Rs.100 at a time, but each of those investments is a stone in the foundation of your financial freedom.

#4: You Are Responsible for Where You Are in Your Life

Recently, a friend told me he didn't want to invest in stocks/ Mutual funds because she "didn't want to wait ten years to be rich..." The craziness with this school of thinking is that the probability are, you are going to be alive in ten years.

Where you are right now is the sum total of the decisions you have made in the past. Why not set the stage for your life in the future right now?

#5: Instead of Buying the Product... Buy the Stock/ Mutual fund!

Stop buying the products companies sell and start buying the company.

#6: Realize that More Money is Not the Answer

More money is not going to solve your problem. Money is a magnifying glass; it will accelerate and bring to light your true habits.

The problem isn't the size of your chequebook, it is the way in which you are trained to use money.

#7: Unless Your Parents Were Wealthy, Don't Do What They Did

To achieve the financial freedom and success that your family may or may not have had, you have to do two things. First, make a firm commitment to get out of debt. To find out which debts should be paid off before you invest and those that are acceptable,. Second, make saving and investing the highest financial priority in your life; one technique is to pay yourself first.

#8: Don't Worry

The miracle of life is that it doesn't matter so much where you are, it matters where you are going.

The day will come when you make your last payment on your car, your house, or whatever else it is you owe. Until then, enjoy the process.

-Shakti Shukla