Transform Your Financial Life in 20 Days!

Published by Sharekhan Education | April 17, 2021

Transform Your Financial Life in 20 Days!

I am sure the title has aroused your curiosity and you are eagerly scanning the content to get to the part that will give you some tips, some quick rich remedies or ideas on how to transform your financial life in just 20 days. But sorry to disappoint you my friend; you will not find anything like that here; No tips, no get rich quick strategies; Nothing!

“Transform your financial life in 20 days”doesn’t mean that you will double your wealth in 20 days or you would be an ace investor or trader; No. Rather we will be discussing some ground rules that will help transform your approach and attitude to investing. These will help empower you to take more informed financial decisions and can help prevent you from making financial mistakes which you may have been committing so far.

We understand that you want to invest to create wealth for your family, to provide the best for your children or support your parents in their old age; but are these to take wrong financial decisions? On the contrary if you are the primary bread winner in your family and are worried about your financial situation then think what a wrong financial decision can do to your already harried finances?

So let us dive in and get to understand these ground rules that can help transform your financial life (but not in 20 days).

Do not fall prey to quick rich remedies:

Quick rich remedies can come in attractive packages, just like our title. This statement did excite you to act didn’t it?  But logically thinking is it possible to transform your financial life in just 20 days; unless you win a jackpot or get some inheritance? It is important for you to understand that investing is a serious game which involves your hard earned money; one wrong move and its checkmate.  You may end up losing all at stake.

Avoid investing randomly and on hearsay:

A general observation is that people invest randomly into investments they don’t really understand. They invest on hearsay; because someone said so. It is because they saw an advertisement asking them to do so. They invest because their neighbour hit a jackpot in the stock market and they want a share of ittoo.  They are ready to take any gamble to become rich quickly, at the snap of a finger maybe… but in the bargain what happens? Perfectly right! They meet with failure. They lose their MONEY. So if you don’t want to lose your money then avoid investing on hearsay.

Avoid Herd mentality:

Following the herd will not get you where you want to go. Doing what others are doing may land you in trouble. Your financial success will depend on how you take your financial decisions. Avoid herd mentality and just do what is right for you.

Have an investment plan in place:

It will work as a road map and seamlessly take you to your destination i.e. your goals. An investment plan is an excellent tool that can help you take stock of your current financial situation and build a path to help you reach your financial goals.

Find out your risk tolerance:

This will help you in two ways. Firstly you will be able to select the right asset class to invest in and secondly you may not lose sleep because you put your money into it. Generally people are not aware of their risk tolerance and dramatically react to losses. A situation you can avoid if you know your risk profile don’t you think?

Invest for the long term:

If creating wealth is your financial objective, then there is no need to remind you that Rome was not built in a day; you need to become a long term investor.  Investing for the long term will help you reap better tax and inflation adjusted returns.

Gain financial knowledge:

Financial empowerment is the way ahead. Now that you have taken the reins in your hands it is time to gain some financial knowledge. It is time to understand the pros and cons of the investment you want to put your money in. So pull up a few details of that stock or that mutual fund you so badly wanted to invest in. Financial knowledge will help you meet financial success.

To summarize, remember transformations don’t happen overnight, they take time. If you are committed and disciplined you can transform your financial situation and turn the tables in your favour.  Remember to always exercise caution and keep away from quick rich remedies; these are sure shot ways to financial distress. So empower yourself and take control of your finances. Financial empowerment is the only way ahead.

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Happy reading…