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.  

Will Visualizing Your Financial Goals Help You Achieve Them?

The technique of visualization is simply great for performance improvement. Sports legends such as Michael Jordan and Tiger Woods, all have used visualization for pushing their performance limits. This helpful technique can be utilized in every walk of life and this includes, achieving financial goals.  

So, what is visualization? It is the method of vividly imagining achieving your goal. So, in other words, you are just creating an image of your success beforehand. This will, in turn, change how you think. 

Visualization builds confidence

Several studies suggest that the brain finds it hard to make a distinction between a real and a visualized image. This is based on the idea that when you visualize an action, you are stimulating the same regions of the brain as though you have performed the action in actual. What it does is, it tricks your brain that you have already achieved the goal.  

This will build the necessary motivation and confidence in actually achieving something. You will feel like you have already done it before. For a better understanding of how to achieve your goals, visit Wealthclock Advisors. They are prominent financial advisors and offer excellent mutual fund investing advice. 

How to visualize?

So, the main question that arises here is, how should you visualize? One of the most recommended ways is to visualize on the outcome, that is simply about achieving the goal. For example, if it's about sponsoring a child's education, try to imagine your grown-up-child celebrating the successful completion of their degree during the convocation ceremony. 

But think of the visualization as a movie instead of a static picture. Doing the following can help you better in this approach. 

• Choose a time and place where you will stay relaxed and be at ease. It is advised that you do it early in the morning or simply, before sleeping. Just sit in a comfortable pose and close your eyes.

• Now, imagine a situation where you have achieved success in fulfilling your financial goals. This has to be done vividly with plenty of positive emotions accompanying the whole act. Thus, if you aim to retire, then think of a dream destination where you are relaxing solely or with your spouse beside you. Mutual Fund investments are perfect for this purpose. 

Visualization may significantly improve the odds of fulfilling your financial goals. It helps you gather that much-required confidence and motivation to achieve the set goals.  

Why Should an Investor Aim to Increase Their SIP By 15% Every Year?

Most investors see saving as a burden. When some investor is told to save more, they tend to groan inwardly and are annoyed by the whole idea of saving more, despite making the best efforts towards the same! This article will unearth reasons why exactly saving more every month towards a SIP is not just a fantastic thing but a necessity as well. 

Saving is undoubtedly very hard

A person's salary generally grows by a specific percentage above the inflation rate and it depends on the economy a lot. It also depends on a couple of other factors like years of experience, the industry one belongs to, etc. In the last few years, salary growth has been within the range of 8 – 10% for the majority of private-sector employees. 

The salary growth of 10% for someone who makes 5 lakhs a year might not be that big an amount for someone who earns 12 lakhs. Taxes impact salary growth too. Inflation is presently trending at 5-6% p.a. In the case of services as well as entertainment, inflation is on the higher side as well. So, saving can be a tough thing today.  

For the best saving advice, one can get in touch with Wealthclock Advisors. They are prominent financial advisors who operate in different cities and offer excellent ways to invest in mutual funds online. 

Beating inflation requires higher saving 

For most people, their income would have grown along with their expenses. But did their savings grow in line? Inflation might be lower in the last few years but it will surely strike in the future big time! An investor's monthly saving of Rs 5000 six years back is not the same as saving Rs 5000 at present. 

So basically, an investor's present savings are more valuable than their futuristic savings. This simple fact escapes most who think it is best to save only when they have enough. Those who began saving, say for example Rs 500 in 2007, is worth double at present. Considering money is devalued every year, financial independence needs active steps to steer ahead.

The magic of a 15% increase

Saving more and investing it would make a huge difference in the lives of the investors. The best advisors always recommend investing in equity mutual funds for this purpose as it can give a return of nearly 12% annually. Increasing the SIP amount every year by a whopping 15% can dramatically affect an investor's final goal amount. 

When the increase is 15% the result is a corpus that's near to three times bigger! Yes, considering inflation, the buying power of such amounts will be lower than the numbers showcase. But upon a good understanding of one's financial goals, an investor can plan for them and invest adequately.  

Even starting small will not act as a barrier to the investor's financial security! 

In the case of investing, something is a lot better than nothing as such! 

5 Finance Lessons That Will Help Any Investor

The field of investing is quite a tough one as every investor needs to stay at the top of his game all the time. However, this does not stop potential people from investing their hard earned money in this field. Everybody wants to have a piece of cake! But to generate better results at the end one must be aware of some important financial lessons. 

This blog is an attempt to do this as investors can be better at decision-making when they are aware of some important things. A few financial lessons should be taught in schools or other financial institutions so that people are aware of them beforehand and this will give them a significant advantage over others. Also, it will make them less prone to some common mistakes.

So, let's check out the important ones below!

5 helpful financial lessons for investors

Inflation will exist

Inflation signifies a rise in your current expenses even if your lifestyle remains constant. There have been periods when the rate of inflation in India was in excess of 8% pa. Presently, it is close to 5%. So, the main point is inflation is here to stay.

Saving vs investing

You can set aside a part of your income as savings. However, if you keep your savings as a bank FD or simply in your savings bank account, then it has a pretty lower chance of beating inflation. Experts like Wealthclock Advisors suggest you engage the money in inflation-beating assets mutual fund investments. 

Stay patient in investing

Another important lesson for every investor is, they should learn to stay patient in their business. Many people get swayed by other investors when they boast of their outsized returns and big scores! One should stay patient in their actions and not let emotions get the better of them.  

Mutual funds are quite beneficial

In India, people are still now reluctant to opt for mutual funds as compared to foreign countries. In reality, mutual funds can be a great way to increase wealth and earn handsome returns. Most experts consider them as the best financial investment method available.

Plan the taxes well

Your income can be taxed at a whole rate as and when you earn it. So, if you plan your investments in the right way, you can greatly reduce overall taxes as well as delay the incidence of tax.  

3 Financial Goals That Will Benefit You Later in Life

A lot of us do not invest as we are not sure if there is anything that is worth our investment. The first time we really start seriously thinking about investment is when we have to indulge in saving taxes and someone informs us about ELSS! If you are proactive with your investments, then it can literally benefit you. 

Just imagine the situation when you are not uncertain about money or when you don't worry upon hearing the news of lay-offs! How amazing it sounds when you head to an amazing destination for vacation and there is no loan repayment you have to handle upon coming back? For the more stable ones, how about owning your own home? 

This blog will discuss 3 goals that you can start investing in a straight way. You will realize their benefits without waiting for a considerable time period.  

3 financial goals that will boost your dreams

Invest in an emergency fund 

If you own an emergency fund, then you will be a lot prepared for uncertainty. So, be it family related, job-related or health-related, any unexpected situation must not throw you off. You can handle the financial uncertainties from emergencies with confidence and ease if you have an emergency fund to your name.  

Visit a prominent financial expert like Wealthclock Advisors in this respect. They offer the best mutual fund investing advice in town!

Start saving for a vacation

it's always good to relax and go on a vacation so that you don't burn out in the early phase of your career. So, aim to save for a vacation to your dream destination or other places that truly captivate you and enchant your soul. When you invest in a smart way you can visit a foreign place with zero debt and through your own savings. 

You can start your planning by aiming to save for three years or go for different investment schemes that facilitate short-term goals like mutual fund investments. 

Start saving for a home purchase

You would want to own your own home at some point in time. A home loan will definitely help but still, you have to pay about 20% of the cost as a down payment. So, the earlier you plan, the easier it will be later. If you save separately for the home down payment, then you need not rely on your savings that is meant for essential expenses like your child's college education or others.  

Are you a “new” Mutual Fund Investor? Here Are the 5 Rules That You Should follow in 2019

Are you a “new” investor? Umm. Let us be more specific. Are you a “new” mutual fund investor? In that case, you might be facing a tough phase while making investments in 2019. Many investors whom we have made a connection with have just started investing in mutual funds after the “demonetization” drive was carried out by the central government. This what has created the major problem among the investors.   

Like you, there are many investors who have staggered while getting negative returns from their equity mutual fund investments. For those investors, it is extremely decisive to stay focused on their investments during uncertain situations. 

Still having confusion about how to handle all your investments? Look no further. Here in this blog we have listed down 5 crucial rules that if you embrace them in 2019, you can surely enjoy in the end, making successful mutual fund investments.   

1. Stop chasing Returns: When you stop chasing returns, the return will chase you. While making your mutual fund investments, it is certain that you will be told about high returns. But if you believe that high returns will knock your door from the day one then you are surely on the wrong track. 

Additionally, there are some investors who prefer to invest their money in schemes depending on their past performance and expect similar returns in the future as well. This is completely the wrong approach. 

Instead of choosing the schemes based on past performance and expecting high returns from the very first day, you need to look for risks associated with it. Higher the risks, higher will be the returns. Hence knowing your risk appetite will help you to make perfect investments. 

2. Focus on your Investment Goal: Every investor has their own specific investment goal. Some want to make an investment for their child's higher education, some make investments for their daughter's marriage, and so on. The list is long but the main motive is to make investments and save money. Therefore, you must go for those schemes that cater to all your needs. 

For instance, if your goal is for long-term, you should make investments in equity mutual funds, whereas for short-term goals, debt funds are the best. Generally, there are investors who invest in mutual funds online just for high returns. But they lose their focus when they encounter adverse situations. Are you doing the same? This is what you need to rectify while you are planning for investments in mutual funds. 

3. Be patience during Uncertainties: Another most important thing that new investors least emphasize on is patience. Patience matters a lot whenever you are investing in mutual funds. Especially when there is any uncertainty or volatile period, instead of panicking, you need to stay calm and keep trust on your investments. 

We have seen many investors, making investments with strong zeal but during the volatile period they withdraw their money. Mutual fund investments is not a game of a year. It has to be played for a long-term period, if not long at least for 5years.

4. Have Balanced Portfolios: Having a balanced portfolios is yet another technique that you must learn while making investments. Based on the market survey it has been found that many investors who have joined mutual funds after the hike of the equity market in 2016, started investing just in equity mutual funds.

Being an investor, you need to keep in mind that one asset class for example equity mutual funds can never perform all the time. There might be ups and downs in the market. Hence it is feasible to depend on a plethora of portfolios, instead of a single one.  

Investing in mutual funds is one of the finest ways to secure your future and achieve your financial goals. But not every mutual fund tailors your needs. Hence, it is beneficial to look for the fund that cater to all your requirements. 

The best way to get the best advice regarding your investment is to look for a financial advisor. Some financial studios like Wealthclock Advisors will help you with your concern.