How Can People Avoid Going Bankrupt?

Over time, we have seen so many wealthy people in the nation go bankrupt, or at least lose a considerable portion of their wealth. There are various known examples of sports celebrities and movie stars going bankrupt across the world. Such types of stories are not limited to just famous people.  

We have seen the common middle-class men suffering as well. So whether rich or the middle-class, this is perhaps one of the most devastating experiences to go through, especially when you have worked hard all your life to reach to acquire this status, and then see all your monetary achievements disappear slowly. Something like this can really be termed as a catastrophe. 

This blog will now present some ways to prevent this. 

Some steps that may prevent such catastrophic wealth collapse

• Stop buying things on a whim

One of the most common reasons for this state of financial health is the habit of making whimsical financial decisions. It can be an asset or maybe an over-aggressive business plan. Do take time while deciding. Discuss with actual financial experts like Wealthclock Advisors before committing to any large financial commitment. 

If you analyze carefully, you may not need such a huge financial commitment or, it may sound risky. Instead, you can use your money in fruitful investment tools like mutual fund investments. 

• Stop over-leveraging

One of the major reasons for bankruptcies is through borrowing beyond what is needed or deemed normal. This can be for both professional and personal reasons. Once you have a specific amount of wealth, avoid borrowing completely. Even when it comes to your business, it is vital to keep overall borrowing to just minimum levels.  

Borrowing, at best, should be limited to cash flow planning. Borrowing may land you in debt and this, in turn, will restrict how you spend money on different things.  

• Plan the portfolio well

Your focus should be on inflation-beating assets like mutual funds. Equity funds should be an important component of your portfolio. Avoid leverage in your investment portfolio. Too little risk or too much risk are both not optimal. You must have a reasonable mix of debt, equity, and other components in your portfolio based on your general comfort level. 

So, these are some steps that you can take to ensure you don't face a disastrous wealth collapse and go bankrupt like a lot of people do! 

Should You Consider Increasing Your Income As a Financial Goal?

From being able to watch the next edition of the world cup in four years to purchase a farmhouse that is worth a crore in the next 15, all of us have our own goals that are often considered interesting. Our life goals and dreams tend to be unlimited. The limit is just the reality of our income and savings.  

The greater the income we have the bigger financial goals we can plan and subsequently, invest for. So, if this is the case, then should you consider increasing your income as a financial goal? This blog will provide valuable insight into this subject. 

Everyone asks about returns while considering the investment 

Apart from the security of our chosen investments, like Mutual Funds, every one of us focuses on returns. Returns do matter, as they should, up to a point. Investing is all about balancing risk and the growth that we require to meet our financial goals. But what about our personal rate of return?  

Investor's personal rate of return

Asset classes have a certain expected rate of return that is based on historical data and reasonable assumptions about the future. Equity should be able to deliver 12% p. a going ahead, while liquid funds should give near to 7% p.a. But can you say the same about your potential to grow your salary or income?  

Your savings, that you invest, come from a part of your income after all! The truth is that meeting most of your financial goals will also need you to grow your income. So basically the equation is, the bigger your goal the more it might demand from you in respect to income growth. 

This is due to the fact that investment and compounding can do wonders, but not until they receive enough to grow. For the best investment-related guidance, visit experts like Wealthclock Advisors. They offer excellent Mutual Fund Investment Advice. 

Grow your income

The average salary growth for the majority of corporate India has been around 10% in recent times. This is about 2-5% over inflation. At the very least, you must work towards maintaining an income growth that is over inflation. Of course, you don't have control over all of it. It depends a lot on the organization you work for.  

So, try your best to ensure a good hike from your current job. In today's economy and especially to boost your investments, you must build a skill set that is different than your present job or beautifully complements what you use regularly. A side income will do great! It will support your present income and thus, your financial investment as well.