How to become rich: 8 smart money moves to boost your finances in 2025 | Mint

How to become rich: Anyone can become rich; all it takes is knowing how to increase your wealth and be consistent. You can see your wealth increase over time by making wise investments, managing your money well, and consistently reinvesting your money. Developing wise financial practices as we move into 2025 might be necessary for enhancing your financial situation. Setting attainable financial goals is the first stage, regardless of your financial objectives, such as retirement planning, debt repayment, or building a sizeable emergency fund. Livemint spoke to industry experts who shared smart money moves to improve your finances, and make you richer in 2025.

1) Budgeting

The 50-30-20 rule, which states that 50% of expenses should go toward essentials, 30% should go toward discretionary spending, and 20% should go toward savings and investments, is a fantastic guidance.

“To monitor your spending, spot wasteful expenditure, and ensure you don’t exceed your budget, use budgeting applications.Track your expenses and distinguish between essential and non-essential spending,” suggests Gaurav Gunjan, a partner at Gupta Sachdev.

2) Investment Strategy

Select low-risk investing options for short-term objectives, such as debt mutual funds or fixed deposits.

“For sustained gain, concentrate on direct equities, equity mutual funds, or retirement-oriented funds such as NPS,” said Kuljeet Singh.

To stay on course with your financial objectives, Kuljeet Singh, Director of Finance and Accounts at GI Group Holding, advises frequently reviewing and adjusting your portfolio.

3) Emergency Fund

Set aside six to twelve months’ worth of living costs in a high-yield savings account to create an emergency fund.

“To guarantee stability in the growth of your assets and emergency fund, set up automatic payments,” advised Kuljeet Singh.

4) Debt Management

Financial experts advise concentrating on paying off high-interest loans, credit card bills, and personal debts to prevent needless financial burdens.

5) Financial Planning and Education

Steer clear of investments that encourage you to make a rapid investment or offer abnormally large profits.

Gaurav Gunjan advises, “Adopt a cautious and knowledgeable approach to investment opportunities.”

6) Tax Planning

Consult a tax professional to reduce your tax liabilities and maximize deductions.

7) Insurance

Ensure you have adequate life, health, disability, and liability insurance to protect your financial well-being.

8) Avoid Lifestyle Creep

“Avoid lifestyle inflation and prioritize savings over excess spending,” recommends Gaurav Gunjan.

By implementing these wise financial practices, you can take charge of your money and strive for a safe and healthy financial future in 2025.

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Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.