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Essential steps to wealth

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There are just 3 important steps to wealth:

1. Earn Well: To earn well, generally you need to get decent academics. Remember the average CA earns much better than the average cricketer or the average movie star! We compare to the top star and say ‘why do CA, let us play cricket’. Poor understanding of statistics!

So go out there and get a nice education / training which will teach you to earn good money.

I am not saying that education is the ONLY method to earn money, but that is the only route that I know.

2. Having earned that money remember that money spent is just money gone! So if you have earned money learn to spend less! If you spend less, you will have SAVED the money…

Savings are good, in fact great. However, it will not make you rich.

3. To get rich you need to INVEST that money! And invest wisely.

How do you invest wisely?

To start with invest in an index fund. Do a SIP in a good fund from a good fund house. If you do not know how to spot this, use an Index fund. Then learn equity investing and start picking up 2-3 scrips a YEAR. Over a 20 year investing life you would have created a portfolio of about 50 scrips. Frankly you do not need more than that. And of course there is one more step. A simple step.

Simple. Read www.subramoney.com regularly, and read the old blogs too!

Remember i have 3900 posts for you to read. Many are boring, but most of them are nice and all of them will make you wealthy.

One of those posts will even tell you the difference between Rich and Wealthy.

Go on, Read.

Remember I will know that you have read only and only if you comment – like, love, hate, anything is fine. Feedback is a must please!!

23 thoughts on “Essential steps to wealth”

  2. Arun

    Reading your blog is already a part of our daily routine Subra ! Thanks to your blog, have stayed away from debt. Thanks Subra.

  3. B

    Dear Sir,

    1 suggestion…. pls post only financial literacy blogs like this one…. kindly avoid “how to ……,, what r…….” kind of blogs… such material is available in plenty on other run-of-the-mill sites. u have recently increased such “What are primary markets?” kind of blogs….

    pls do not DILUTE ur blog…

  4. sid

    For most of us (23 to 29 years), ELSS is the first type of fund we invest in but there is not a single index based ELSS.

  6. AbhIjit

    “Average” word is really important while comparing income of a common man with stars. I have seen lot of people saying Sachin Tendulkar failed in 12th class but is still on the top. Why not me?
    It’s a good thought to be inspired and live your dreams but just need to think “How many 12th failed people go to the height of Sachin Tendulkar’s???”

    There comes the average part.

  7. Shankar Raju

    I think most of us do the first step, by some level do the second step. But many of us don’t even know there is third step called investing … as they know only gold ,RE and FD. Thanks Subra.

  9. sushila

    Hi sir,
    This reader or better word fan of yours has always loved ur blog. Be it financial or otherwise. Its always informative or eye-opener or sometimes scary. But its always enlightening.

    Regards/Sushila

  11. Suresh

    Great article sir. I also recommend reading “Thinking Fast and Slow” to understand more on aspects like survivor ship bias, success in business etc.

  14. Sam

    Thanks for the wisdom Sir…

    I read your blog regularly. Commenting to let you know that there are many silent readers like me 🙂

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