All of us want to become rich but very few of us achieve this wish. According to Richard H Thaler, Nobel Prize winner for Economics in 2017, becoming rich is not very difficult provided we are smart enough in terms of ensuring we dedicatedly follow a savings culture. The Nobel laureate has a strong belief that savings is the first step that leads you to the economic prosperity. Thaler, who got Nobel Prize for his research on Behavioural Economics, lists out the following 4 money-making tips:

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1] Focus on savings: Thaler is of the strong view that to become rich one needs to save more and for that one needs to start savings as early as possible. So, one should start savings in the early phase of one's career to get the compounding benefits on savings for a longer period of time. According to Thaler, if someone saves Rs 1 lakh per annum, assuming 12 per cent annual returns, maturity amount at the age of 60 years would be to the tune of Rs 5 crore! He also says that if you get late in investing by 10 years, then the same investment goal will require Rs 3.5 lakh to be saved annually.

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2] Step up your savings: Not just that, Thaler is of the opinion that annual savings should be increased in sync with the rise in income. So, if you get a salary hike from a promotion or job change, you should increase your savings amount accordingly. This step-up in one's annual investment would enable you to achieve your investment goal even quicker. It will help you achieve your bigger investment goals in lesser time. Best way to step-up one's investment is to beat inflation. So, those who are doing SIP should step-up monthly SIP by near 10 per cent and achieve their investment goals in lesser time.

3] Disciplined and diversified investment: Thaler strongly believes that one should have a diversified exposure but it doesn't mean a complex portfolio. He advises investors to properly regulate investments and if any investment is not yielding properly, then exit it and find better investment tools. He also underlines the importance of discipline in investment as it is critical for long-term SIP success.

4] Goal linked investment: While making any investment, be clear about investment goals, says Thaler. He advises an earning individual to make emergency investments that can be used during financial emergencies without disturbing the other investments and monthly budget. To remain invested even in financial emergency, Thaler advises to invest in plans having lock-in conditions.