Everyone wants to create wealth and see it grow. Some want to enjoy it; some leave it as a legacy to the next generation, some as a security or some just for the sake of it. But how one goes about creating this wealth is important. It is about getting consistent returns by investing judiciously and staying true to the asset allocation. Let’s discuss some of the myths that prevent people from building wealth.

• High income equals wealth – This is a very popular myth where people believe that some with high income are wealthy. But this isn’t always true; the income has to be invested wisely for it to turn into wealth. If that income is spent frivolously it will not lead to wealth creation.
• Certain Obstacles can’t be overcome – Another myth which people believe in and thus not make any efforts to grow their wealth because of this. Of course, there are certain aspects in life that one has no control over like death, the recent pandemic, volatility of the market or Government policies. But aspects that are in our control like how much we save, invest and spend can lead to wealth creation.
• Huge Funds are required – The myth that a large chunk of money is required to start investing is totally baseless. One can start saving even with Rs.500 per month in RDs or Mutual Funds. One should make use of the SIP and save regularly and see the wealth grow over a period of time.
• Invest in high return stocks and relax – It isn’t always true that on investing in a high yielding stocks/funds one is guaranteed a high return. The investment has to be tracked and assessed to see the growth. If at any time the stock/fund starts dipping one should think of moving the funds to another stock or fund. If this is not done, then it may lead to a loss which may take time to recover.
• I am too young to plan saving/retirement – One is never too young to start saving, it is believed that one should start planning for their retirement the moment one starts earning. If money is given time, the one can see it grow substantially. When one starts financial planning early, certain risks in investments can be taken as there is time on hand to recover any ups and downs due to market volatility and one can retire early in life.

Saving is being wealthy – Just saving isn’t enough, the savings have to be invested wisely to see the growth and eventually become wealthy. One has to invest in an asset class that will give better returns than the inflation. There is no point in just saving,wealth is generated by  investing, re-investing and giving it time.