Dreaming of becoming a millionaire? Here are four ways to become wealthy
- Individuals with huge wealth are typically people who spread their investments across sectors to earn attractive returns.
- Remember, it is not always a high paying job that can help one turn into a millionaire, it's just the habit of regular investments and at the right time and at the right places.
- Here is what most millionaires do to earn six figure salaries
AdvertisementFor a country with a large number of poor population and the majority of population over 18 years of age, it is important that there is enough financial awareness on how to earn money.
In fact, with proper financial awareness and planning, becoming a millionaire is also not a distant goal.
Thanks to financial advisors, YouTubers and influencers, financial awareness has improved in the last few years.
But still, based on a study by the Reserve Bank of India, 43% of the population borrowed money from informal sources and paid higher interests, shows data by India Brand Equity Foundation (IBEF). Financial education individuals make informed decisions.
Money Insider dives deep into the world-changing potential of financial awareness. It brings together the top young voices from the industry educating millions of Indians and shaping the financial habits of millennials, Gen Z and beyond.
One such influencer who works towards making finance effortless is Ashna Tolkar – financial educator, influencer & founder at The Money Lancer.
She has a following of nearly 77,000 fans on Instagram, Tolkar’s videos are popular among the younger generation. She educates users about wealth management, with one reel at a time.
According to Tolkar, here are four ways of becoming financially independent faster:
Investing in equity
Investing your savings into the stock market lets you own a piece of the company and be eligible to get rewards in terms of dividend if the company makes more profit.
For regular investments, one can also do systematic
AdvertisementIn fact, equity has been one of the favourite investment options of investors since the pandemic as shares of good companies were available at relatively cheaper valuations.
Along with it, work from home and high digital acceptance made investing in equities easier than before. In FY21, the two depositories, Central Depository Services (CDSL) and National Securities Depository (NSDL) added 20.9 million demat accounts and 28.9 million new accounts respectively.
To invest in the stock market, it is mandatory to have a demat account.
The real estate sector has been struggling even before the COVID-19 due to a serious liquidity crunch for real estate developers. Average house prices rose just 2.5% last year, reportedly according to a Reuters poll.
Real estate is an investment because typically property rates have been increasing over time. If at times, properties can decrease in value, the long-term trend is usually upward. It can also generate passive income from rent.
AdvertisementAnother way to invest in real estate without buying an actual property is through real estate investment trust (REITs). REITs are companies that own commercial real estate such as office buildings, retail spaces, apartments and hotels. REITs tend to pay high dividends.
Further, prices of real estate are expected to rise with increase in cost of building materials and inflation.
High paying jobs
India is a fastest growing economy with an incredibly diverse job market with even a range of high paying jobs. Millennials have a comparatively a list of options to choose from now while selecting a career and getting a hefty salary job.
High paying jobs include those of chief experience officers (CXOs), lawyers, investment bankers etc. These are some of the most reliable ones but you always have to work for someone else, says Tolkar while explaining some of the high earning options to become a millionaire.
A chief experience officer is an executive responsible for the overall experience of the firm’s products and services. Investment bankers are ones who help and advise clients in wealth management, mergers and acquisitions and identify unique investment opportunities.
Adding to these, masters in engineering, artificial intelligence sector, digital marketing are other sectors having potential to offer huge payrolls to employees.
It is no news that social media is one of the top mediums of communication and now, a noteworthy option to earn good money. The entertainment sector has been a massive hit as content creation platforms like YouTube and Instagram have boomed in recent years.
In the era of social media, there are a plethora of exciting jobs in this space like — social media manager, social media marketing specialist, content creator, brand marketing, graphic designer, video editor etc.
In fact, there are many YouTube channels dedicated to financial awareness that have opened in the past few years. According to IBEF, the top 15 Indian YouTube channels focusing on equity markets have a subscriber base of more than 13 million.
AdvertisementAlso read: https://www.businessinsider.in/stock-market/news/top-five-experts-to-learn-investing-in-us-stocks-from/articleshow/91182037.cms
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