How to 'inflate' your wealth

By Yogesh Chabria

Do the daily reports about inflation worry you? Well, don't get all worked up! I have put together five strategies to help you kick inflation in its face.

1. Inflate your wealth
Invest in instruments that give you more than 7% returns every year. This percentage of money you make will be more that the rate of inflation. You could, of course, look at commodity companies like iron ore, steel and cement, where you can earn handsome returns.

2. Invest smartly

The key to wealth creation is not just about saving. But also, investing your money wisely. The right investment decision can lead to tremendous amount of wealth creation in the long run.

For instance, you would have been worth Rs 1 crore, if you invested Rs 10,000 in a company called Unitech four years ago! If you had invested the same amount in a bank fixed deposit, it would still be worth less than Rs 20,000.

3. Invest in knowledge

Do your research; find investments, which have the power to multiply your wealth. Your knowledge will help you select investments, which will fetch higher returns in the long run. Maybe you will stumble upon the next Unitech, which will change your financial position forever!

4. Don't splurge!

Keep those insanely expensive cell phones and fancy shoes at bay, for now. Invest the money you save. Over a period of time, your savings and investments will grow and you will also benefit from compounding.

5. Be original

Don’t invest in a particular mutual fund or stock just because your friends or neighbours are investing in it. Ask yourself if investing in a particular product will help you. People who create wealth do things that others don’t and create their own destiny.

I assure you that if you invest in yourself, first, you will certainly be able to create wealth in the long run.

Yogesh Chabria, an investor and author, wants to empower retail investors with knowledge. His latest book Invest The Happionaire Way, will soon hit bookstores. Drop him a line at his blog.
 

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