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.