Want to Become a Crorepati in 10 Years? Don't Make This Mistake - Top 5 Points to Keep in Mind

Everyone dreams of becoming a crorepati, but achieving this milestone requires discipline, strategy, and the right financial choices. Apart from these the most important step is saving money in the first place. How to save money is one of the biggest problems of today and you will get the solution of this problem in this blog. This solution is a 100% practical solution. You will not have to think about how to save money, for this, you simply have to follow five practical steps.

Select Date For Investments

The very first thing you need to do is step one select a date for making your investments now which date should you select? Let's say you receive your salary on 1st of the month then you can select the date 2 or 3. Your date should not exceed more than 2 days after the payday.

Now that you have chose a date let's move towards step two.

Don't Ignore Inflation

Inflation erodes the purchasing power of your money over time. Many investors make the mistake of targeting a specific amount, like Rs 1 crore, without factoring in inflation. Adjusting your investment goals to account for inflation ensures that your wealth retains its real value. "Ignoring inflation is like running a race without knowing the finish line. Always calculate your goals in today's terms and factor in future costs,"said Prasad Lendwe, the founder of FinnovationZ.

5 Square rule

Warren Buffett says, "Do not save what is left after spending, but spend what is left after saving." Well, the first rule to start your saving journey is to start small.  What you have to do in step two is to find a liquid fund, liquid fund is an investment avenue, where you can park your money temporarily, it is a safer option to park your money temporarily.

Liquid fund allows you to withdraw money anytime and as the name says, it is liquid, that means there is no lock-in, you do need not pay any commission on this.

Now what do you have to do for this liquid fund? You need to start a SIP here. Remember you chose a date of investment in step one? Start an SIP in a liquid fund on that date and automating this process is crucial so that this amount is set aside automatically.

How Much To Set Aside In This Fund?

5% of your salary, why only 5%? Because you are currently spending 100% of your salary, every time you get a raise your expenditures go up proportionately and you end up broke by the end of the month.

"Keep doing this for at least 6 months and train your brain to survive the month without this money. Remember to keep increasing this amount at regular intervals" highlighted Prasad Lendwe, the founder of FinnovationZ. FinnovationZ's mission is ambitious yet focused-to increase India's per capita income by 30% by 2035 through informed investing.

It is a small amount, it does not make much difference, once you get used to this start increasing the amount slowly. This is to just get you into the habit of saving.

Start Investing

So now that you have started the habit of saving money, what to do with this savings? Liquid funds don't generate huge returns don't they? Just saving your money won't help in any way in your journey of wealth creation. It is investing this money that will, so now you can divert this funds to anywhere you like. You may divert this funds to any active equity mutual fund, bonds, or even share market.

It is now time to start putting this money to use and start investing this money. Becoming a crorepati and escaping the rat race is not impossible, simply following these steps can help you save money and start your journey towards wealth creation. These steps can help you escape the rat race faster.