Wealth creation is a long-term goal and needs adequate planning. Here’s a round-up of some of the best options that can help you grow your money over a period of time

Wealth creation is one of the top financial goals, and yet, it takes a backseat in our ever-busy lives. It’s a no-brainer that a single source of income will not help you realise the big milestones – you have to proactively work towards growing your wealth. What’s more, inflation is at an all-time high, which is why you need a tool that not only beats it, but at the same time, augments wealth creation. 

Now that doesn’t mean you have to be constantly toiling to make your money grow – instead, it is critical to find ways to ensure that wealth creation happens on its own. The good news is that there are several ways to grow your wealth, over a period of time. 

Strategies to grow your money 

Here are a few simple tips that can help you realise your dream of wealth creation: 

Make a sustainable financial plan

Like everything in life, wealth creation starts with a little bit of planning. Evaluate your long-term goals and be realistic about how you can achieve them. You could also take the help of a financial advisor to chart out a plan that’s sustainable. It will make life far simpler for you!

Stick to a budget 

This is something that you just can’t avoid! Budgeting helps you keep your finances in check – which is essential in the long run. Create a realistic budget based on your lifestyle, and stick to it. In fact, when you make a budget, you also know what your spending habits are, and where you need to cut down. This strategy can help you achieve, both your short-term and long-term financial goals. 

Pick up a side hustle

Of course, with inflation on the rise, there’s no way you can solely rely on your salary, or a single source of income. That’s exactly why it’s a good idea to have a side hustle – it could be anything that’s not too demanding, and at the same time, can offer you good money. It also provides a cushion, in case your primary source of income is affected. 

Build an emergency fund

More often than not, emergencies strike without notice. In such cases, it’s almost instinctive to use our credit cards – while that is a common contingency plan, you could end up paying high-interest rates. Now that can really derail your financial plan – instead have an emergency fund that you can lean on, when there is an untoward event.

Be consistent in your investment 

As humans, we get excited to start something new and it all dies down over a period of time. Well, if you follow that approach to investing, you are going to suffer severe losses. That’s why it is essential to stay consistent, so that you can benefit from rupee cost averaging over a period of time. Also, remember that you do not have to follow the herd when it comes to your investment plans – do what caters to your risk appetite.  

Create a diversified portfolio 

We already know investing in a range of financial tools is a good idea to grow your wealth. Once again, do not rely on a single medium – work towards building a diversified portfolio, so that you can reap rewards even when there are market downturns. 

As they say, don’t put all your eggs in the same basket. Put your money across channels like real estate, bonds, stocks, and commodities. You could also invest in Unit Linked Insurance Plans or ULIPs that offer you a dual benefit of investment and insurance. 

Why HDFC Life’s Click 2 Wealth is the ideal plan for you

There are several reasons why ULIP plans are the best bet for investors. For one, they provide maturity benefits – in case a policyholder outlives the maturity period of the plan, they receive the entire corpus from their insurance provider. What’s more, the maturity benefit is exempt from tax, under Section 10 (10D). Moreover, policyholders can heave a sigh of relief, because even in their absence, the death benefit offered by the plan will take care of their family members. 

The good news is with HDFC Life’s Click 2 Wealth plan, policyholders can pick between 11 plans to maximize their investment. 

Here’s a look at some of the options: 

• Invest Plus: If policyholders go for this option, they receive maturity benefits, death benefits, as well as other advantages. If you choose a fund booster (added benefits), the total amount of maturity charges that are deducted from the cover will be added to the fund value (during maturity). 

• Premium Waiver: In this case, the policy takes care of the policyholder’s family, in case of his/her absence. This means that if the policyholder has an untimely demise, all future premiums will be waived to ensure that the fund does not stop growing. The policy continues to offer risk cover for the life assured, and the accumulated fund value is paid at maturity. 

• Golden Years benefit: There’s no better retirement plan than this one, and at the same, helps you leave behind a corpus for your family. As part of this plan, you can build your fund value, while also enjoying life cover until 99 years of age. Post-retirement, you can make use of the systematic withdrawal facility to get recurring income. 

These are some of the other highlights of the plan: 

• Unlimited free switching option
• You will incur fund management charges as well as mortality charges towards your life cover 
• Addition of 1% of the premium allocated to your fund for the first 5 years 
• Future premiums are waived off, if the policyholder loses his life before the maturity of the plan
• You can opt for add-on riders like the Income Benefit on Accidental Disability or Critical Illness Plus to receive additional income benefits, in case of total disability due to an accident, or diagnosis of specified critical illnesses
• Systematic withdrawal option to ensure post-retirement income
• As part of the Premium Waiver option, mortality charges that are incurred in case of the life assured, will be refunded

So, wait no more and start your investment journey today! Wealth creation is a long-term goal and what’s better than to begin early, with HDFC Life!

Disclaimer: This article has been produced on behalf of the brand by the HTBS team.