5 FINANCE RELATED THINGS TO DO IN AN HOUR
Earning money seems like an everyday job. For us sailors, finance is even more important since we earn money for a part of the year only. Building a smart relationship between you and your money can affect a lot on your financial productivity. Getting smarter with your money does not take a lot of time. Just doing these 5 things that take less than an hour; can have a huge impact on how your money grows.
Subscribing to financial blogs
We are not taught much about financial management or financial productivity in our academics unless one is not part of hardcore finance. Subscribing to such financial blogs can surely help you to update your knowledge regarding finance, investments, productivity etc. Reading such financial blogs also helps you to understand the basics of investments or savings. Market risks which are probably not mentioned on the outlook of a scheme on prima fascia are understood and pros and cons can be known in detail.
Note: The problems faced by mariners are more specific so we at Mariner Investments, are here to cater to those in particular.
Unlock the power of 72
Before applying the rule of ’72’ the most important thing one must know is his/her actual wealth. For finding your actual wealth;
Net worth: (Sum of all your fixed deposits, equities, mutual funds, cash, annual income etc.) – (all your debts)
The value which you obtain after subtracting is your actual wealth or financial net worth.
Rule of 72
‘Rule 72’ states that if you divide 72 by the compounded annual rate of return, you get a rough estimate when your money will double. So at 8% your money will double in 9 years (8% is considered because 8% is the average rate of interest provided by all banks), but this does not consider inflation. Hence, if you want to actually grow your money faster and in a tax-free manner try investing in mutual funds where the average rate of interest provided is around 13-16%.
Transfer the unused money, stagnant in your bank account and move it to liquid mutual fund
Investing in banks in the form of fixed deposits or bonds over a long period of time actually degrades the value of money, because the average rate of interest provided by any bank is say 8%.
So instead of keeping the unused money in your bank in the form of fixed deposits or bonds it is better to invest it in mutual funds. Investing in mutual funds can give you a rate of returns as high as 16%. The average rate of returns observed in mutual funds is 13 to 16%. Investing in mutual funds helps in increasing your money with almost the double rate of interest.
Repeat the above three steps with your family members too
Applying the above three rules to individual’s income no doubt made a huge difference. If the same above three rules are recommended to your family members to increase their existing wealth it indirect improves your financial stability. The way our family members grow wealth impacts us as well.
Use MOOC’s to skill up yourself
The most effective way is to increase your salary by increasing your productivity. Enrolling yourself in new affiliated courses which can update your knowledge as well as give you handsome hike in salary is recommended. Massive open online courses are gaining a lot of popularity these days which help in conditioning your skills. Try doing such courses which indirectly increase your productivity.
Tip: You can do courses in photoshop or social media marketing which are forever in-demand topics and then offer your services to the public. This can act as a side source of income when you are not sailing.