11 Habits of Financial Success




Everybody is having financial problems or not having enough money to enjoy. There are lots of miss understanding behind the successful financial life. those are having regular income or salary do not think much about the finances, but remember in life your income will not remain constant, and the inflation will eat your future buying power of money.

If you would like to maintain your healthy financial life, like you maintain your health, which required regular workouts, here are habits for your financial success.

Maintain Income:

Maintain your income. Your income is the primary and important source of your finance. Invest in your skills because your income is directly proportional to your skills. Whatever you do for your income, you might be salaried, self employed or business man, you need to maintain your income and try to increase it every year. Don’t be more aggressive to increase your income. For successful financial life, your income is only one part of the system. The key point in maintain your income.

Increase Saving Rate:

No matter how big your income, if you are not saving at all, you are going to invite a big trouble in life. I personally know the people having a big income but very poor saving rate and they are right now in big trouble. Opposite to that one of my friend having moderate income but high saving rate around 30-40% of saving rate, enjoying happy life having everything in life, and working on future wealth creating opportunity. You must have on an around 30-40 % of saving rate for healthy financial life. Your saving rate may vary according to your priorities and expenses but remember, maintain high saving rates. Your saving is important part of your finances.

Invest for Growth as well as Income:

Invest your money in growth as well as for income, your money must grow at moderate rate of return and also provide regular income. There are lots of financial products which provide you both, but if you are in your early years of your income, invest your money aggressively into growth and take maximum risk.

Invest Big Amounts:

If you find the big opportunity invest heavily, but remember whenever you invest there must be a lot of crises and lot of volatility around the instruments.

The big return made at the time of crises, take systematic risk, and work around the uncertainty. There is a big difference between risk and uncertainty, you can get the lot of information on the same subject, but remember if you know the difference between the risk and uncertainty you will become successful in life.

Don’t start your first investment very big, make small investment test your patience, temperament, behavior and your skills for three-four years, if you are confident then make big move. At least try to maintain your financial plan, and whenever you get opportunity, make big moves.

Do Not Buy Real Estate Unnecessary:

I find in India, there is unnecessary love for gold and real estate, both the investment avenues are good but don’t make huge investment. One of my best friends has everything in gold and real estate. I don’t know how he handles it, how confident he is? You can make better return but not the best return.

When you buy gold or real estate, you not check the prices everyday all are long term or for generation investment.

Suppose you invest 10-15 Lac of rupees in real estate, you can make moderate return at least in India for 10-15 years, let’s take example if you invest those money in 10 front-line stocks of group A companies, and hold this until you hold your real estate, and not check prices every day, you can make multi fold return as compare to real estate.

Gold is not income generating avenue, it can only appreciate or depreciate or it’s a one type of insurance in bad economic conditions, but if you are having one crore of wealth and you are insuring it for ten crores never make sense. You must have gold and real estate in portfolio, but it must have only 10 -15 % of your wealth.


Make budget for everything, make budget for your income, you’re saving, expenditures and for your investments. Without budget you can’t make any decision. It’s a very good habit of successful people. Lot of people say there is no requirements of budgets, is a myth, but remember if you want to be a big financial success you must prepare budget.

Making budget it’s a first step, you must stick to it.

Do Not Retire:

There are lot of article on retire early, retirement plan, but remember successful people never retire from their profession, they can change their way of working, you can take any example from any industry, for e.g. Warren Buffett from investment world and Amitabh Bacchan from Indian film industry, because these people know the magic of their income generation and they love their work so much. As you become older your income ultimately increases.

You can find the work which you love or you love your regular work there are only two choices available.

So don’t try to retire, love your work, update your skills, and learn from everything, become learning machine, you can definitely make a formula for your success.

So, don’t imagine your retirement very early. Work regularly.

Use Debt Properly:

People have fear about debt, but if you use moderate debt for investment you can generate good return, but remember don’t use debt for spending it’s a suicide, try to avoid the debt, but if you use it intelligently you can make big returns. If you don’t know, don’t take debt at all.

Compound your Wealth:

As per Albert Einstein “Compound interest is the eighth wonder of the world” you don’t lend money to poor people for compound interest, but you can compound your wealth. I don’t want to go deeper into the compounding, there are two basic component of compounding, the rate at which you are compounding and the second one is Time or years you want to compound, remember the rate might vary but time is same for everybody, and if you maximize your time or years, you can easily create big wealth. Let’s take one example, can open your eyes

  Power of Compounding
  Investment Per Month (Rs) Number of years Future Value (Rs)
Person A 2000 40 62807511
Person B 3000 30 21029462
Person C 5000 25 16420369
Person D 10000 20 15159550
Person E 20000 15 13537262
Person F 30000 10 8359718
  The rate of return has been assumed to be 15% per annum

Person A can make huge wealth only with small amount but he uses the number of years. Person F has more amounts but the less number of years he cannot make huge wealth.

Do it Now:

Whatever you want to do, do it now.

If you waste a minute, you waste hour,

 If you waste an hour you waste a day,

 If you waste a day you waste a month,

If you waste a month, You waste a Year,

 If you waste a year you waste a decade,

And if you waste a decade you waste a Life

Ultimately you waste a Precious source called TIME and waste everything in life. Everything you can save, just acting now, calls your financial adviser now or read a financial book now which you purchase one year back.

Do it Now, there is no tomorrow.


Equity is a fantastic instrument to build wealth. You must educate yourself, don’t depend upon others. Whenever a discussion with people who lost money 90% of people say they act upon friends or other people advice.

Advantage of Equity Investing

  1. Dividend
  2. Capital Gain
  3. Claim over assets
  4. Rights Shares
  5. Bonus Shares
  6. Liquidity
  7. Stock Split

You can use the advantage of equity for your wealth creation.

Risk is, Equity itself is risky, Fluctuation in price, Volatility and lot others, but if you have right attitude and right behavior you can create huge wealth.

These are the basic things; there are lots of minute and interesting things about equity.

At least invest 5-10% of your wealth in equity, start it with few thousands of rupees.

I know people who invest in the market, incurred losses and after that, they book losses and get out permanently from the market, but they are not trying to find solution, and leave the biggest opportunity.

Don’t depend upon other for advice, you can get ideas from others, try to evaluate on your own strength then make decision, if you don’t know then you must educate yourself first. Your first investment must be in your educations, which will definitely compound your wealth and success in your life.

To Your Success with Lot of Love!

Sign Final Harish




Harish S Kawalkar

Book Sales

PS: Don’t miss, reading success letter, be ready to learn new things and become more successful in life. Sign up! For “The Success Letter” http://eepurl.com/E2poT (It’s Free)


Copyright © 2016 All rights reserved