8 things you must do now if you wish to retire as a Billionaire
By adding $11.2 billion to his fortune, Facebook’s Mark Zuckerberg was all smiles when the ‘FORBES 2016 Top 10 list of the World’s Wealthiest People’ was out. Despite his maiden appearance in the rankings, this man had the best year of all billionaires.
At 31, not only is Zuckerberg the world’s fifth-richest person with a net worth estimated to be $56.7 billion, but also the owner of a $7 million Palo Alto mansion spread over 5,617 square feet. He owns at least four cars – Acura TSX, Honda Fit, Pagani Huayra and VW Golf GTI, and plans to build a palace on the 750-acre tract he picked up on the beautiful Hawaiian island of Kauai for $100 million two years ago.
This is a life of a billionaire, and everyone wants to own that life. Who minds a couple of swanky cars, a huge bungalow, a large farmhouse for vacations, and of course, money to buy anything you keep your hands on.
You may not have everything Zuckerberg has at 31 years of age, but you really have to do a lot of things right now to end up with all of this by the time you retire.
Here are tips and notes that can help you plan smart while you are still young and take you a long way ahead, if you really want to retire rich:
- Be wise and keep a track on your spends
Often we spend money on things we may not even use. So, be gentle on the wallet before you make any transaction and check how you can be more efficient in managing your expenses.
- Always keep an emergency fund handy
Saving money can prove to be your biggest asset. Creating a separate account where you can deposit a fixed amount of money every month can be a really good idea. This is your liquid cash which will come to your rescue when you face any sort of contingencies.
- Invest smartly
Keeping all your money in one place may not prove to be fruitful. You could try to divulge them into a mix of stocks and bonds, or in mutual funds which have a variety of stocks and bonds. This will not just prove profitable, but help you save on taxes too. By your late 20s, you should be able to set aside some money just to make these investments.
- With a salary hike, maximize investments and minimize expenditure
It is human tendency to want to shell out more money for entertainment in times of a salary hike. But, you are using the extra money efficiently only when your investments are increasing proportionately, not your expenditure.
- Investing in real estate can never go out of fashion
Buying a property is a one-time investment, but with far-fetched results. It is a source from where you can get a fixed amount of money even long after you retire because returns from this asset you create will only increase with time. When you take off from your career, you can just sip your margarita and relax.
- Don’t just try to cut expenses, instead find ways to make more money
If you are constantly thinking of new ways to earn, you won’t have to live like a miser. Take up a freelancing gig and stash that money aside as your savings.
- Get professional advice
Before taking huge investment decisions, it won’t harm to take professional consultation with financial advisors. They know the plans that will suit you best so that you can stock enough finances to have a rich post-retirement life.
- Investing money is an art, learn it
This is why DSP BlackRock Mutual Fund has set up a system wherein you can consult their financial advisors so that you can invest your money in SIPs and Mutual Funds in the correct set of portfolios to reap enough for a lifetime.
Sounds perfect for a retirement plan, right? Now you can start dreaming about your bucket list!
(Image Credits: Flickr)
Source: Business Insider