Three habits that can make you rich

Introduction 

Friends, when you go to the market to buy something So the first question that comes to mind is that the product that you're going to buy, what is the price of it? Apart from that, people like you and me take a lot of other tensions Like we sometimes think That if some emergency comes up, where will I get the money from? Consider that if I lose my job, How will I complete my finances? 

Then another thing comes to mind That if I was rich, I wouldn't have to get tensed about all these things But now I will ask you, how do you define rich? And what are those habits that can make you rich? That can make you wealthy Let us discuss in this blog About those three habits that can make you rich. 

Apart from that, at the end of the blog I will tell you the three thumb rules of investment Using which you can make a very good investment How can we define rich? We all want to become rich But what do you think, that if I have 10 lakh rupees in my account Or 1 crore rupees When will I call myself rich?

Maybe you can't ever think of this number That after getting a certain amount of money, you will start calling yourself rich Because you can never define rich But yes, it's false that you can't ever become rich You can become rich when you attain financial freedom. 

Now you must be thinking about what financial freedom is when you don't have to think about anything financially And how can this be attained? When you financially plan for everything Consider that you think that somewhere in your life you might have an emergency For which you will need a lot of money. 

So you already plan for that emergency To attain financial freedom, you mainly need two things First, you should see how much your income is, And second you should see that according to your income.

How many expenses will you have And how many contingencies and emergencies you might have in the coming time So if I tell you that if you make yourself financially free Then you will become rich.

Yourself Because for every person, financial freedom comes at different amounts So when he becomes financially free Then he can call himself rich So I will tell you those three habits that can help you attain financial freedom And which can make you rich. 

1. The 50/30/20 rule

Rule Which we call the 50/30/20 rule This tells us how we should do the budgeting of our money A lot of people have told us that we said they should do savings And I have a lot of necessary expenses. 

So how do I divide my money into all these things So for this there a very important rule which we call the 50/30/20 rule This rule tells us how we should divide our money into different things. First, needs Second, wants And third, savings.

what is need

Needs are those things that are the expenses of your daily life Which are very important and you can't ignore them? the groceries for your house The expenses for your house Like you pay rent And expenses for electricity Which means these are those expenses which you cannot ignore This rule tells us that if you earn 100 rupees in a month Then you should keep 50 rupees for this expense. Which we call our basic and necessary expenses. 

What are wants

Wants Now you should understand what Wants are those things that are for your luxury expenses Which are those things aren't very important but if you want a nice lifestyle then you have to make these expenses I'm not saying it is necessary to make them. 

but you might have to But here you should keep a maximum cap That if you earn 100 rupees Then for your wants You should not spend more than 30 rupees And under wants come if you go to watch a movie If you go to eat in a nice restaurant Apart from this a lot of expenses that you make to maintain your lifestyle. 

what is savings 

Let us talk about the third and most important parameter which we call savings A lot of people asked us How many minimum savings should we make per month Can we give a number to this?

This rule tells us in percentage terms That we should put a minimum of 20% of our salary in savings Now this saving can be in investment also You can invest this in mutual funds, In Equity, In FD, gold.

Which means that you have to save this money and keep which you have to use for investment So a minimum of 20% is what you should do, you can do more than this also If you save your money from other places also Because this 20% will help you a lot To appreciate your capital in the coming time To increase your money Which will become a buffer income for you when you retire. So this money only will come to use a lot.

2.You should not take loans or debts 

If I talk about the second habit, then the second habit is that you should not take loans or debts And a lot of people say that you shouldn't take loans or debts And to an extent.

I agree with this That we should try to cover our expenses and investments with our money And we shouldn't have to take a loan But there are a lot of cases where we might have to take a loan.

So now, for how much should you take a loan So always try, that whenever you have to take a loan Then you should take only that much of a loan where your EMI amount should not be more than 10% of your salary And whenever you take a loan or debt So you should always take them to invest it in appreciating assets You should never take a loan and invest in depreciating assets. 

And if I talk about appreciating assets Then you should never take a loan and invest it in the equity market Because the equity market is very risky And the returns there can always go up and down So I will absolutely not suggest this That you take a loan and use it for investment. 

Yes, you can use it in a few cases if you have to use it for your house But in that case, you should always keep in mind That your EMI amount per month should not be more than 10% of your salary A lot of people are unable to attain financial freedom because they take loan or debt And they are unable to repay it.

And for that, they take more debt Because of which they get stuck in a debt trap To get out of which is almost impossible for them And when you are stuck in a debt trap Then you will never be able to attain financial freedom. 

3. Maintain your emergency fund

The third and most important habit Which can help you a lot in attaining financial freedom and becoming rich Which is to maintain your emergency fund Now what are emergency funds used for.

Consider that there is some emergency or the other in your life That someone falls sick, you yourself fall sick Because of which you might have to leave your job as well So a lot of cases can come up.

where you might have to use the emergency fund So about this as well a lot of people ask how big of an emergency fund should we keep So your emergency fund should be so big That it can cover your expenses for the next six months. 

And like I told you in the first point That your expense should be 50% of your salary So basically your emergency fund should be so big That it should be equal to your three month's salary Because if your emergency fund is as much as your three months salary Then it can cover your expenses for the next six months. 

So if in any case there is an emergency So you will have enough time To get out of that emergency And to again financially plan your life So after a financial issue like I promised you at the beginning of the blog That I will tell you three thumb rules that will help you make good investments 

Three thumb rules that will help you make good investments 

1. The 100 minus age rule

And the first thumb rule is The 100 minus age rule Now what does this rule say? We always get the questioning mind from our investment how much should we put in debt and how much in equity.

So consider that your age is 30 years So this rule says that you should minus your age from 100 And whatever is left after subtracting is what you should put in equity Consider that your age is 30, so 100-30 is 70 So 70% you should invest in equity And you should invest 30% in debt instruments. 

2. The rule of 72 

The second rule is the rule of 72 Which tells us in how many years will your money double Now consider that you invested somewhere Where you were promised that every year you will get 9% as compounded return Which is impossible that someone promises you that you will get a certain return.

But consider that you were told that you will get a 9% return So from 72 divides how much return you're going to get So what you will get will be the number of years in which your investment will double If I talk about this case So 72/9=8. 

This means that if you invest in such an instrument Which gives you a compounded return of 9% every year So in 8 years your invested money should double. 

3. The fundamental difference between investment and insurance 

The third rule is that here there is a fundamental difference between investment and insurance And a lot of retail investors like you and I get confused about these things That if I took insurance it's like an investment And if made an investment somewhere.

it's like my insurance But these two things are fundamentally very different Both of them have a different objective And you should plan your money very well That how much and when you should take insurance And how much and when you should invest And if there is an emergency then which insurance should you use And in which case should you use investment And what is the objective of that investment. 

So basically you should plan your investment and insurance in different ways Both of them should have a different objective And you should never mix the two.

 So, friends, if you liked this blog, then please comment down below and let us know That for you which rule will be the best if you want to attain financial freedom And from your comments, we get a lot of motivation We also get to learn a lot And our reader also get to learn a lot So please keep commenting and subscribe to our blog.