Money creates money— this is what people usually believed. It means, the more money you have, the more wealth you will be able to generate. However, it is not entirely true. It is not only the amount that you have saved or invested, but also the wisdom to save or invest that can make all the difference.

If you also want to create wealth but confused over the process, here are some of the easy tips to create wealth. It’s all about making a few changes in your lifestyle.

  1. Cut back on your eating out: Nowadays, many people, especially working class, prefer to eat out. True, it is good to give yourself and your family the occasional treat. In fact, it becomes common in today’s time as it lets you spend some quality time with your loved ones. However, eating out regularly is not bad for your health only but it affects your finances as well. If you can save, for instance, Rs 2,000/monthly by cutting back on your eating and invest the same in a product that gives you 8% return, it will help you generate corpus equal to Rs 3.68 lakh in 10 years. Isn’t it good?
  2. Pay all bills on time: There is a pile of bills that need to be paid every month, including electricity bill, phone bill, maintenance bill, credit card bill, among others. In case you don’t pay these bills on time, you would have to pay late fees. The fact is that most of the people pay between Rs 500 and Rs 1,000 as fine every month. Here the problem is not the money, but laziness in most of the cases.

But, if you save Rs 1,000/monthly by paying all your bills on time and invest the amount where you get 8% returns, you can generate Rs 15 lakh in 30 years!

  1. Start investing early even if it is of small amount: If you want to earn wealth, make sure that you start investing as early as possible, even if it means a small amount. There are various investment options like ULIP, mutual funds, etc.; where you can start your investment with a small amount.

As evident from the following, an early start can help you generate huge corpus in the long term:

Parameters Rahul Ajay
Investment Amount/Month Rs 5,000 Rs 5,000
Start investing from the age 30 Years 35 Years
Returns 8% 8%
Corpus at the age of 60 Rs 75.01 Lakhs Rs 47.87 Lakhs


  • Stay away from impulsive buying: It’s hard to find a person who doesn’t like to shop. However, do you often reach home with your shopping bags to find you aren’t excited about the things that you have bought? It can happen to anyone. Therefore, if you are an impulsive shopping, try to restrict the moments of interest before purchasing anything. An impulsive shopping not only hurts your finances, but it can also make you regret your decisions later.
  • Say no to smoking: Though everyone knows that smoking is injurious to health, still it is hard for them to quit. If you are a smoker, but now you are looking ways to quit it, then you should keep aside the money for every cigarette which you would not smoke. If the cost of one cigarette is Rs 13 and you usually smoke 15 cigarettes a day, you would save Rs 5,850 in a month if you manage to quit smoking completely. Invest the amount in an option that can yield good returns to create wealth in the long run.
  • Introduce ‘spending freeze’ for a week: You can introduce a spending freeze in a week, during which you won’t buy anything. Exceptions to this rule are medicine, food and emergency situations. In this way, you will be able to save a certain portion of money which you can invest to earn wealth in the long run.
  • Be disciplined: To create wealth, it is necessary to be disciplined with your investing. No one is born with a silver spoon in the mouth. To create wealth, invest in something you believe in and make sure you continue doing so without missing any instalment or premium.

Last but not the least

  • Choose the correct investment options: Above we have discussed the importance of investment. However, to grow wealth, it is necessary that you choose the right investment option. There are various avenues where you can invest your money. But while investing, choose that option which not help you generate wealth but also secure your loved ones in your absence. Here, ULIPs come into the picture. ULIPs are an insurance-cum-investment plan that not just help you invest to create wealth but also secure your family against untimely demise. Further, as per your need, you can also withdraw money to meet urgent needs.

Brian Koslow, a financial advisor, said, the very first step to build wealth is to spend less than you make. And the next sure shot way is to choose the right investment options to invest your money.

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