Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Top 5 Principles That Need to be Followed for Wealth Creation

If your aim for wealth creation this year, you need to follow a disciplined investment approach. Building wealth is a long-term activity. Here are 5 wealth creation tips to accumulate wealth.

  • Aug 20, 2019
  • 4,370 Views

If your aim for this year is wealth creation, you need to follow a disciplined investment approach. Building wealth is a long-term activity and you need to be patient. You must take one step at a time towards wealth creation and remain committed to the process.

Here are the top principles you need to follow to accumulate wealth:

1. Pay yourself first

There are many individuals, who are unable to save anything from their income while there are many who manage to save a small amount regularly. You need to ensure that your expenses are covered after saving a certain sum from your monthly income. It should not be the other way round.

2. Save now

Most of us tend to underestimate the need for financial security and hence, delay the saving process. The best time is to start saving is now. It is important to understand the power of compound interest. The longer the period of investment, the better is the power of compounding. Whatever amount you manage to save, you need to invest and see how it grows.

3. Re-pay your loans

One of the important wealth creation tips is to get rid of the loans at the earliest. It is a bad habit to take a loan for paying your expenses. If you wish to grow your wealth, you need to re-pay your loans and ensure that all your savings are invested. Try to meet all your expenses from your income and save for the future. Do not take the loan route for every expense.

4. Build an emergency fund

A smart investor understands that an emergency can strike at any time. If you are not prepared for the same, you could end up losing all your savings. You need to keep three times of your monthly income as an emergency fund. If you do not have a fund, you will have to borrow at a high-interest rate.

5. Protect your assets

Your assets are a cover for the inadequate savings. If for some reason, you have used all the savings, you can use your assets in case of an emergency. No matter the type of assets you own, you can sell them to meet your liabilities. If you have not invested in life insurance plans, your dependents will have to use the assets to meet the financial needs in case of an unfortunate event. This would surely be the situation if you were the only earning family member. To avoid such a circumstance, it is important to invest in a life insurance plan. Doing this will not only help you in safeguarding your assets but will also help your beneficiaries to cope with the financial requirements when you are not around.

Invest in Term Insurance now and Secure Your Loved Ones

Achieving your long-term financial goals will become easy if you follow these wealth creation ideas. You need to remember that you will not build wealth overnight. It will take time and you need to remain calm and composed throughout the process.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

8 Important Tips to Maximize Gains with ULIP Investments

What are Some of the Safest Investment Options in India?

Endowment Plan vs Fixed Deposit?

What is ULIP Plan, and How Does it Work?

How to Calculate Your ULIP Returns?

How to Plan your Investment to Achieve Periodic Financial Goals?

Learn About Safe Investments with High Returns in India

Importance of Portfolio Management

Creating a second source of income with life insurance

What Is Financial Planning?

Can ULIP Policy be Transferred?

Difference Between Passive and Active Investing

Are Investment Returns Guaranteed in a ULIP?

How To Track ULIP Performance?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

Building wealth through regular investing

Do You Know the Difference Between Savings and Investment?

ULIP NAV Meaning & How is the Return Calculated in ULIP

What is a Credit Score and How Can Insurance Help You Improve it?

How to Manage Inheritance Money?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

A Step-by-Step Guide: How To Make An Investment Plan?

Rate of Interest on Different Investment Plans in India

ULIP Plan as a Gift

8 Charges in ULIP That You Must Know

What are the Best Investment Options for Beginners or Amateur Investors in India?

How Can ELSS Funds Help You Save Tax & Create Wealth?

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Learn About Safe Investments with High Returns in India

वित्तीय संपत्तियां और उनके प्रकार

Best One-Time Investment Plans in India

Why are ULIPs One of the Best Tax Saving Instruments?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Corporate Bonds: Meaning, Types & Benefits

Best Investment Options in India in 2022

ULIPs: Suitable for all

What is Direct Investment and its Types?

Receiving regular payouts at various stages of life

Investments Options to Buy a house in India

Why Should You Build an Emergency Fund?

Which are the Best ULIP Plans in India for Children?

Why Are ULIPs Called Flexible Investments?

What is SIP Calculator, And How Does it Work?

The lesser-known facts about ULIP policy that customers should be aware of?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

ULIPs Investment – A Boon or Bane?

Are Money Back Policies Helpful? A Complete Guide

Customising investments to manage your wealth

Difference Between Guaranteed Savings Plan and ULIP

Savings Plan for Grandchildren

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

ULIP Benefits You Can Avail from Early Investing

Why Should I Invest in ULIP?

What is Equity Mutual Funds: Meaning, Types & Benefits

Asset Allocations in ULIP - Know the Top Benefits

ULIP as an Investment for Your Child

Top 10 Investment Strategies to Create Wealth

How to Start Saving Money in 10 Simple Ways?

How Do One-Time Investment Plans Work?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What is ULIP and Its Benefits?

What are the Best Short-Term Investment Plans with High Returns?

What are loyalty additions, and how do they work in a ULIP?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Long Term Savings Plan - Best Savings Investment Plans in India

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

Why Do You Need A ULIP Plan - All You Need To Know

How to Cancel ULIP Policy?

4 Benefits of ULIP Fund-Switching Feature

Benefits of ULIP as a Child Insurance Plan

Everything You Must Know About ULIP Riders

Why Should Parents Invest in Endowment Plan?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Successful Financial Planning for Urban Women

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Here's Why it's a Good Time to Explore ULIPs as an Investment

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

How To Invest Money In ULIP?

What are the Advantages and Disadvantages of ULIP?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Safe Investment Options with High Returns for FY 2018-19

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How to Use Recurring Investment Strategies to Build Wealth?

What is NAV in ULIP, and How is it calculated?

Short Term and Long Term ULIP Plans for Wealth Creation

Can ULIP Help in Achieving Short-Term Financial Goals?

What is Compound Interest, And How Do I Calculate it?

How Does an Endowment Plan Work?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

What is ULIP Renewal?

Top 5 Investment Options in 2022 for Healthy Returns

What is a Child Money Back Plan, and How Does it Work?

What is Money Management? Definition & Example

How Much Wealth Can You Create from ULIP in 10 years?

Four Financial Lessons from The Vedas on Living Life to The Fullest

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Top 10 Investment Plans Available in India

Why Should You Invest in Term Insurance And ULIP?

6 Important Tips to Maximize Your Gains with ULIP Investments

What are the Best Investment Options for Students in India?

Early Investing and the Power of Compounding

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Is the ULIP Policy Surrender Value Taxable?

What is the Time Value of Money (TVM)?

Got a Salary Hike? Here’s How to Plan your investment further

How to Increase Net Worth Along with Family Protection

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

How to Fulfil Your Financial Goals in the Next 10 Years?

How to Make Your Financial Portfolio?

How To Diversify Portfolio In 2023?

Things to Know Before Buying an Endowment Plan

Investment Options for NRIs in India

What are Financial Assets & their types?

Which is a Better Investment - Mutual Funds Or ULIP?

Factors Affecting Stock Markets

What are the Best Investment Options for Young Adults?

How to Plan Your Child's Education - A Step-by-Step Guide

Why ULIP is Better Investment for Long-Term Wealth Creation?

Planning for Your Child's Higher Education? Explore These Investment Options

How to Choose the Best ULIP Plans to Invest in 2022?

Planning Financial Goals and Objectives of Financial Planning

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

यूलिप के फायदे और नुकसान क्या हैं?

Best Investment Options to Cover Your Child's Education

Difference Between ULIP and Endowment Plan?

What are Tax-Deferred Savings Plans?

How to Manage Your Portfolio Like a Professional?

Best Investment Plans for Children - Secure Your Child's Future

What is the Importance of Saving Money?

Different Types of Endowment Plans

Important Questions You Must Ask Yourself When Buying a ULIP Plan

What is a Savings Plan and What are is Benefits?

ULIP vs FD - Which is Better and Why?

What are Mutual Funds?

यूलिप के फायदे (Benefits of ULIP in Hindi)

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

How to Plan Savings from Salary?

Are Gains from ULIP Sale Taxable?

What are the Best Investment Options For Females?

What are Index Funds and How Do They Work