10 tips to make you rich in 2017

Spend some time reflecting on what is your definition of being rich this new year.

 |  4-minute read |   23-12-2016
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New Year will come with new opportunities and challenges. One thing that remains constant, though, is if something did not work in 2015 or 2016, there is a high probability it will not work in 2017 as well. So if you are looking to improve in certain areas try doing things differently.

Here are 10 tips which can set you up for better results as far as your personal finances are concerned, and help you become rich: 

1. Define what being rich means to you

Rich is defined in the dictionary as having a great deal of money or assets. The other definition: having plentiful or abundant. You need to define for yourself what does rich mean to you. How much money is plenty for you, will learning new skills make you rich or a healthier body will make you rich.As you enjoy the carols and cupcakes and party to welcome the New Year, spend some time reflecting on your definition of being rich and if you already had a definition reflect on how you fared in 2016.

2. Get into a habit of budgeting

If you have had interactions with finance guys in your company you would realise starting point of a good financial plan is a good budget. Budgeting is an essential exercise not just for organisations but equally important for personal finance. Have a clear idea of your cash flow — summary of incomes and expenses. This will help you prioritise expenses and cut down on spendings which do not fit your budget.

3. Add new income streams

Most successful or rich people have multiple income streams. They are never dependent on a single income stream. Start thinking about adding new income streams to your income in 2017 which can keep generating ongoing income for you. It can be starting an online business, selling online, guest assignments or buying an asset which creates regular income.

books-body_122316054031.jpg Books are the best investment one can make.  (Credit: PTI photo)

4. Have clear short-term and long-term goals

Set up clear financial goals for yourself both in short- and long-term. It requires different investment strategies to achieve them. Start investing early for long-term goals like retirement or big house you want to buy 10 years down the line. Remember over long periods stock markets outperform most other investment avenues.

5. Have adequate health insurance

Health costs are going through the roof and they will keep on growing. A health emergency, if you do not have adequate health insurance, can leave you poor. Ensure that you have adequate health insurance for you and your family, including your parents.

6. Go out, meet successful and rich people

It is said you are the average of people you hang out with or the books you read. So go and meet successful and rich people you will learn a lot. Reduce the time you spend on social networks, and go meet real people.

7. Create a financial plan and track your goals

A good financial plan is a starting point to create wealth in long-term and achieve your financial objectives. Sit with your financial planner and define your financial objectives set up realistic goals and keep tracking them.

8. Cut the flab

If you start tracking your cash flows you will start getting a good idea of your expense profile. In 2017, pick up one expense (it should be a substantial one) which you want to cut from your expense profile. It could be subscription to TV channels you don’t watch or visits to fancy hotels whose food you do not enjoy any more. Identify one such expense and cut it in 2017.

9. Read good books

“Always read something that will make you look good if you die in the middle of it.” P.J. O’RourkeBooks are the best investment one can make. So go ahead and pick up some good titles of your interest and start reading.

10. Teach your kids all of this

Well, the last good thing you can do in 2017 is to teach your chidlren all of the above. Teach them about money management, fiscal discipline, budgeting, reading and doing good things with their life and money.Wishing you a Merry Christmas and a wonderful New Year ahead. Have a great 2017.

Also read: Modi's solution to black money, demonetisation, as bad as the problem 

Writer

Sarabdeep Singh Sarabdeep Singh @sarabdeep

The writer is co-founder of Bodhik, an online investment management service.

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