I remember my mother taking a couple of hours on every Dhanteras day to complete an elaborate “Pooja” of Goddess Laxmi in the form of coins (of various metals). The memories are still very vivid in my mind. And I continue with this tradition albeit in a bit different way:

I have always maintained that creating wealth is a not a 100-metre dash, it’s a marathon. There are lucky few who strike gold in a short period of time and make it big. But for most of the other 95%, it’s a slow and steady progress. Even if you strike it rich, if one does not have the aptitude to handle this windfall, it won’t stay for long.

So, it’s not the yearly Pooja that will help in wealth creation or preserving your windfall. It has to be an everyday process. Liken this to an exam where your last-minute prayers would be of very little help if one has frittered away the entire year…. You can’t appease the Goddess by a one-off ceremony each year.

Well, then what should one do? Here are a few helpful tips and they may not be end all but a guide enough to get you going for the long term.

  1. Make a budget and stick to it

Plan your expenses and stick to it. Though it’s difficult with umpteen temptations, you have to ensure you stash away for the future… I have said this in my multiple articles. Review your income / expenses / savings & investments.

  1. Save & Invest each month

At least 20% of your net pay for your future. It’s paying yourself first theory, remember.

  1. Invest don’t save

“The difference of 6” – my previous article outlines what makes the difference between saving & investing

  1. Loans –keep them to minimum and only if absolutely necessary

Why would you start your new year with a new loan? Rather, why wouldn’t you put money aside for next 12 months and probably buy your object of desire with an upfront payment.

In today’s times, with Ecommerce firms going mobile, the temptation to shop has only worsened. To make matters worse, easy payments facilities (apps / credit cards) makes the transactions of huge amounts pretty unemotional.

Trying paying in cash for purchases worth 50k and you will know what I am talking about. Think thru for all large spends. Trying delaying the buying decision for a couple of days which gives you time to think thru. You will be able to discern between need & want. This has always worked for me.

  1. Start saving for your retirement – now

For someone in their 20s & 30s, retirement seems too distant to give a thought. But remember compounding works wonders over time and the earlier you start, the better it is.

A small SIP of Rs.3000/- a month in a good Mutual Fund at age of 25 & doubling it every 5 years can create a corpus of Rupees 6 crores at age of 60.

  1. If you have children – teach them how to manage money…

This is a chronic issue in India. Most parents don’t manage money well and no schools / colleges in India teach students to manage money. If you can restrain yourself and teach the basics to your children, there can be no better gift for you child.

Happy Dhanteras & Diwali. Here is wishing you a healthy & wealthy future…