Want to be rich in 2020? These 4 time-tested tips will come handy

We have limited needs and unlimited wants, and therefore what we earn never seems to be enough. Our evolving lifestyle seems to occupy more and more of our growing income, thus leaving us less to save. With the rising costs of living, you need to get the best out of your income. Whether you are salaried or self-employed, you can always follow a few simple steps to boost your income through different streams. With 2019 coming to an end, let us take a quick look at a few things that you can do to become wealthier in 2020.

(1) Focus on increasing your primary source of income

If you are currently dissatisfied with your income and want to earn more from your job, then you need to focus on certain areas:

• Make sure you hit your Key Responsibility Areas (KRAs) – This is the bare minimum that you can do at your workplace. Do not forget that this is the least you are expected to do as per your job role. So, achieve more for a better position and hike.

• Take ownership of upcoming and ongoing projects – If you find a project wherein you can prove your skills, take it up and assume complete responsibility for your contribution.

• Develop new skills and polish the old ones – Enhance your skills by taking up new courses (even online) to upskill yourself. This will not only help you in your current position but also boost your resume if you are looking for a new job.

• Be visible in your organisation – Speak up and put forward your views in meetings, communicate with people, demonstrate your expertise, etc. This will help you get noticed in the organisation.

• Take a few additional responsibilities – Don’t always stick to the key responsibilities mentioned in your job role. Exceed your targets wherever possible. Additionally, take up some extra responsibilities and deliver them on time.

Focussing on these aspects of your job role will help excel in your career as well receive higher remuneration.

(2) It is never too early or too late to invest

Investments are one of the best things that you can do for yourself. If you have not started investing yet, this is the best time to begin. Consider investing based on your financial goals. If you are unsure about the risks related to investing, start with very low-risk investment instruments such as fixed deposits and Public Provident Fund (PPF).

Once you get the hang of it, consider taking on bigger financial goals which can be achieved through systematic investments in instruments such as equity mutual funds or National Pension Scheme (NPS). Balance your allocations as per your income, age and the tenure of your goals. Earning profits through systematic investments does take time but it is also one of the most convenient and safest ways to get the most out of your money. Take mutual funds for example. ELSS mutual funds (popularly known as tax-saving mutual funds) will have a lock-in period of 3 years. But longer investment tenures help your money compound and grow at a faster rate.

(3) Maximise your tax benefits

You are eligible for tax benefits of up to Rs.1.5 lakh under Section 80C of the Income Tax Act. You can channelise your investments in a way that they help you maximise the benefits. Some of the instruments where you can consider investing are:

• Public Provident Fund (PPF)

• Tax-saving Fixed Deposits

• National Savings Certificate (NSC)

• Employee Provident Fund (EPF)

• ELSS funds

In addition to these investments, there are some other deductions as well which you can avail such as payment of life insurance premiums, home loan instalments, and payment of your wards’ tuition fees. By maximising the tax benefits under Section 80C, you can expect better savings.

(4) Monetise your hobbies

This is something which many do not consider but you can monetise your skills and talents to earn some extra cash. The best part about this is the fact that you will be earning money while doing something you love. You can pick up some freelance projects, give online tutorials, or even go for stage performances. The choice is yours.

Whether you are saving or earning additional, it should be kept in mind that you must use your money judiciously. In the end, you should not feel that the extra money you earned was wasted. Get a clear picture of your financial goals and use the additional money towards meeting these goals. You also need to prioritise your expenses wherein preference must be given to more important financial commitments.

These tips will go a long way to help you secure financial stability, a diversified investment portfolio and a good amount of savings. Wish you all the best!

Adhil Shetty is a guest contributor. Views expressed are personal.