Money management is a hard-learned skill for many. People earn and save but forget the growing opportunities they can have with some easy but significant management skills they can apply in their lives. "Life gets much better when you start managing your priorities. As a businessman, I managed my company and as a person who values wealth, I managed my money consistently. I believe everyone can do it and can start doing it today with a little guidance", said Mr. Prince Shrivastava, MD of Ekta Contech Private Limited and a self-made millionaire.
We came across a few idealistic subjects touched by him in a conversation that can help you to start building a secured financial future. To start with, Prince commented, “Invest early and invest in real estate”. Real estate is a safe option if you research well before investing in it. One, it is physically there. Two, the growing population will always need more accommodation. The crucial part is to start early as the rules of compounding are always working even when you are reading this. People before you have already started their journey towards the bigger goal with this one fact in check.
Education is everything but that does not necessarily mean having an expensive degree. Do not go for educational loans before being sure about a plan for paying them off. Have that tough conversation with your parents about who will pay the fees and then decide for yourself accordingly. Students usually carry the burden of educational loans and lose the opportunity to start investing their money in the initial years of their first jobs.
“I started investing my money in real estate when I was in college. The rented apartment I used to live in the first year became mine by the third year of my college because I made the conscious choice of working and saving to pay the down payment of that property. Later, I rented it to other students and eventually managed to pay the whole amount of that property”, shared Prince while talking about college and money management.
The unseen part of owning that apartment was the rent he saved throughout the two years of his college life. Not only this, he even gained profit out of that apartment when he sold it for twice its cost price within a year. That's the power of real estate investment & Prince wants the youngsters to realize that.
Moreover, every market is fluctuating right now, so if you are investing just for the sake of it, that won’t work. Your intentions matter a lot because if you are getting a home for yourself, you’ll be happy with your asset without worrying about its valuation in the coming years. But if your sole purpose is to make a profit out of it, you will always be worried about the fluctuations. Life is not worth worrying about the things you cannot control.
Always try to find the price before jumping into harsh decisions as everything comes at a cost, and that's the most brutal truth one can accept. You will be required to pay the price when the time comes, so you must plan first and act later. Learn about things for yourself and implement them; learn about taxes and investments to have a retirement plan; understand the value of life insurance and health insurance for your loved ones to secure their future along with yours; most importantly, diversify your portfolio. It’s not a good idea to keep all your eggs in one basket when everything around you is uncertain and constantly changing. Evolution is a process and you are a part of it so live your today with a plan for your future.
Lastly, Prince advised “Remember to have an entrepreneurial mindset and then grow through your mistakes. As a new investor, you are prone to make mistakes and that’s where the learning starts. Outgrow your comfort zone and concentrate on the bigger future. Every person who thrives for success focuses more on their current actions. In return, those actions paint the bigger picture.” With this, we are genuinely hopeful that you will start your journey towards the life you have always dreamt about.
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