Build Your Financial Portfolio: House, Car, Stock Market, Mutual Funds, Start-Up, Newer Instruments!
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If retirement planning is the only thing that you are saving for, it's time you build a complete financial portfolio to live a great life today while securing your future. Creating your personal portfolio requires you to sit down and analyze your Net Worth at the moment. Start with listing down your Assets and Liabilities to understand your financial position today.
Once you know your current Net Worth, it's time to figure out where you wish to reach in the next 10 years. Building a strong financial portfolio takes time and diligent savings. Here's a list of things that you must aim investing your money in, to build wealth and an astounding personal portfolio:
1. Create an Emergency Fund
Once you start earning, the very first thought could be investing in an FD or PPF. However, it's time to hold your horses and save for an Emergency Fund. Aim at building a savings account that can fund at least your three-month expenses if not six-month (remember conservatism).
2. Start Investing in Mutual Funds/Stock Market
Now that's where the returns and compound interest start flowing in. Be prudent and cautious while investing in Mutual Funds or Stock Market and be a long term player. Take help from a good fund manager to avoid risking your hard earned money.
3. Own a Car
Owning a decent car is another important goal for most of us. Once you solidify an emergency fund and have consistent investments in place, you can invest in a car. However, plan your purchase well and buy a car you don’t have to change in the next 10 years. Get it serviced on time and drive it smoothly - coz you own it!
4. Invest in a Home
If you are living in a rented accommodation, then you must aim at buying a home and redirecting the monthly rent towards monthly EMI for your home loan, at this stage. This fixed asset will give you year on year appreciation, besides converting the expenditure (rent) into equity and letting you claim tax exemptions too. And luckily, if you happen to live in an ancestral home, then this new home can generate regular income in the form of Rent for you, every month.
Starting up and doing what you would love to do the rest of your life is an amazing proposition at a stage when you at least partially own your home and have other investments in place. That's the time you can quit your high-paying corporate job and start-up, to work with a burden free mindset and create a business set up that can generate millions, which a 9 to 7 job can never do!
6. Explore More
Last but not the least, never stop saving and investing money even if you reach the Zenith of your financial dreams. Your fund manager is one person you must go with for a financial date every 3 months and if you don't ditch your investments and your financial outings, nobody can stop you from becoming Rich, Wealthy & Successful!