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HOW TO MAKE YOUR MONEY LAST?

HOW TO MAKE YOUR MONEY LAST?


Running out of money is one of the biggest concerns for most of us. People do have reasons to be worried: preparing for important junctions of life, education is getting expensive, healthcare is getting expensive, and the list is simply endless.

Although a thoughtful financial planning cannot completely eliminate the risk of running out of money, but at least it can reduce the risk to a great extent.

However, it takes financial acumen and expertise to save, invest and multiply your money. Handicapped by lack of financial expertise and scarcity of time, you can entrust your wealth to a wealth coach or financial planner.

USE YOUR MONEY WISELY

Using your money wisely is the key to make your money last longer. And in doing so, you need to minimize your must-have expenses like food, shelter, transportation, debt payments etc.  And simultaneously increase your investments.

DON’T SPEND MORE THAN YOU EARN

Boris Becker, the youngest winner in Wimbledon’s history, who claimed the first of three titles at the age of just 17, has auctioned his medals, cups, watches and photographs to repay his debts. His “riches to rags” story was primarily the result of his lavish lifestyle and extravagant purchases. A simple financial rule is that if you spend more than you earn and don’t invest, you will eventually run out of it.

AVOID TAKING RISKS IN RETIREMENT & REPAY YOUR LOANS AT THE EARLIEST

 Don’t get emotionally attached to a loss-making investment and avoid loans if you are uncertain whether you will be able to repay it. The ‘King of Good Times’, Vijay Mallya, is the right example of the destruction by emotional attachment to a loss-making investment.

The clear learning here is not to take undue financial risks. Keep investing post retirement to ensure that your money keeps growing at a pace faster than inflation.

ADDICTIONS DESTROY BOTH YOUR WEALTH AND CAREER

The legendary Mike Tyson, world’s heavyweight boxing champion at 20, had career earnings of Rs 4,910 cr. He spent exceptionally on 110 luxury cars, numerous mansions, and exotic pets like tigers. Later, severe alcohol and drug addiction ruined his career.

Deepak Sir
Deepak Dhabalia
  Wealth Coach 

 

 

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