Tag Archives: wealth

Learn to Grow

Welcome Everybody, this is your host Salrite from riteFinance, today lets learn to learn to grow!

“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”

Henry Ford

“Learning is not attained by chance. It must be sought for with ardor and attended with diligence.” 

Abigail Adams

To be successful in any endeavor you need to be able learn new skills and techniques. If you know how to learn and stay motivated, there is nothing that you can’t achieve. The same applies to Financial Literacy. Having the know how of finance, you can grow wealth and be financially free! And with freedom comes happiness, peace and satisfaction.

Learning comes in Audio, Visual and written form.And one of the conventional and yet the best way to learn is Books. Some great leaders, entrepreneurs and investor spend a huge chunk of their time reading, the likes of Bill Gates, Warren Buffet, Jeff Bezos to name a few reads a book a week or more.

There are some great Books to teach yourself Financial Literacy, Below are our top picks-

  1. The Intelligent Investor by Benjamin Graham : This one is also a recommendation from Legendary investor Warren Buffett.
  2. Rich Dad Poor Dad by Robert Kiyosaki & Sharon Lechter : It advocates the importance of financial literacy, financial independence and building wealth through investing in assets.
  3. MONEY – Master the game by Tony Robbins : 7-step blueprint for securing financial freedom.
  4. How to Win Friends and Influence People by Dale Carnegie : This is my personal favorite and a easy read on Leadership that will help you in every aspect of life.
  5. The Millionaire next door by Thomas J. Stanley : This book is a compilation of research done by the two authors in the profiles of ‘millionaires’.

Start with these five, and you won’t regret what you learned.

Another great format to absorb the knowledge is through Audio Books, you can tune into one and keep listening even while you are walking, doing your daily house hold chores, or traveling (Post Covid ;)). By Signing up here you can get two free Audio Books.

Now, time for my best source of learning – Audio Visual – Video Format – Youtube. Some of great channel we recommend for Financial Literacy are: Minority Mindset, Graham Stephan and Andrei Jikh.

Leaning is an Investment in self, in fact a much needed one. To be able to stay at the top of your game, you need to, you must keep learning be it via Youtube, Blog or Books.

Thank you readers, stay happy, stay focused, stay motivated and keep Learning!

The Initial step to Freedom

Everybody wants to be financially free, but a few knows the way and a very few actually puts in the effort.

Welcome to riteFinance – the pathway to Financial Freedom! Today we will discuss how to create wealth.

The very first step to wealth creation is to know your spending aka track your expenses. To track your expenses you can use a simple excel sheet or a more suitable tool like mint. Whatever you choose the process is very simple, you need to list down all your expenses from day 1 of every month to the last day. And you need to do this for at least 3 months to get an average. If this Average is more than 100% of your Income, then you need to either A. Cut down your expenses, or B. Increase your Income, though an Increase is always advisable but cutting down the expenses is the first thing you should do. Remember ‘Live below your means’, buy only what you can afford not what your credit card can afford.

Once we know how much we spend, the next step is to create an Emergency Fund, i.e. set aside 3 to 6 months (6 recommended) of cash reserved, only to be used for Emergency. If you need to know more about the same, we already have blogged regarding the same here.

Now, if you have the above two steps taken. The next question is ‘How to create Wealth?‘. Yes, we haven’t yet discussed that. The above steps won’t help you create wealth, but it will give enough peace to progress towards Financial Freedom.

To begin your journey, you must know how much of the Income is your expenditure (again if your expenditure is more than or equal 100% we urge you to increase income or cut the expenses). Calculate %Expense of Income, for example if your Income is 100 INR
(or for that matter any currency), and your expense is 75 INR than it becomes 75%.

One thumb rule to manage your Finances especially if you are beginner is to follow 75-15-10 rule i.e. Spend 75% of your Income, Invest 15% and Save 10%. Later on as you get better grasp of your finances and is able to cut more on expenses / increase your income then one should progress to 50-30-20 Rule, 50-30-20 rule can also be called as the Ultimate lifetime Money Plan. It simply means one should Spend 50% of the Income, Invest 30% and save the remaining 20%. And in case your expenses are less than 50%, great you can invest the remaining. You can read more on Investing here.

Remember the you need to Invest like crazy to be Wealthy, while if you Spend like crazy you just end up looking Rich. Choice is Yours.

Tip – Donate a small amount from your earnings to a Charity, and you will start feeling Abundance & Positivity surrounds you, fueling in more wealth and adding a sense of purpose to your life. The more you give the more you will be in a position to receive. Give it a try!

Thank you for reading. For more such Financial Tips, do follow us @ritefinance. Together let’s build Wealth. Happy Learning…