A Guide to Investing in Indian Equities and Equity Mutual Funds 🇮🇳

Global socioeconomic and political issues significantly impact Indian equity markets and mutual funds through various channels, primarily by influencing Foreign Portfolio Investor (FPI) flows, commodity prices, and investor sentiment. For a common man with a long-term investment horizon, a balanced and disciplined approach is crucial.

Impact on Indian equities and equity mutual funds.

1. FPI Flows: A major factor is the movement of foreign capital. When major global economies, like the US, raise interest rates, their assets, such as US government bonds, become more attractive. This often leads to FPIs pulling money out of emerging markets like India, causing a drop in Indian stock prices. Conversely, when global conditions are stable or a major economy indicates a rate cut, capital tends to flow back into India, boosting the market.

2. Commodity Price Fluctuations: India is a net importer of commodities, especially crude oil. Geopolitical tensions, like wars or conflicts in oil-producing regions, can cause crude oil prices to spike. Higher oil prices increase input costs for many Indian industries, leading to inflation and potentially slowing economic growth. This can negatively affect corporate profits and stock valuations.

3. Supply Chain Disruptions: Global trade conflicts, sanctions, or pandemics can disrupt global supply chains. This affects Indian companies that rely on imported raw materials or have significant export operations. For example, a trade war could lead to higher tariffs on Indian goods, impacting the profitability of export-oriented sectors like IT and pharmaceuticals.

4. Investor Sentiment: General global uncertainty, whether from a potential recession in a major economy, a political crisis, or a pandemic, can lead to a "risk-off" sentiment. This causes investors to sell riskier assets like equities and move towards safer investments, such as gold or government bonds, resulting in market volatility and corrections in India.

The Case for Indian Equities

It is definitely possible for Indian equities to outperform other markets, even amid global challenges. In fact, many analysts and economists believe India is well-positioned for long-term growth due to several powerful domestic drivers. While global issues can create short-term volatility and periods of underperformance, India's underlying fundamentals are considered strong.

Here's why Indian equities have the potential to perform better:

* Robust Domestic Consumption: India's economy is largely driven by its domestic market, with nearly 70% of its GDP coming from private consumption. Unlike many export-dependent economies, India is somewhat insulated from global trade slowdowns. A large and growing middle class, rising disposable incomes, and increasing urbanization are key drivers of this consumption story.

* Strong Macroeconomic Fundamentals: India has demonstrated remarkable resilience even amid global headwinds. The country has maintained a healthy real GDP growth rate, often outpacing other major economies. A key factor is the government's focus on capital expenditure (capex), particularly on infrastructure projects, which is expected to have a multiplier effect on the economy. The Reserve Bank of India's (RBI) monetary policy management also plays a crucial role in creating a favorable environment for businesses.

* Favorable Demographics: India's young population is a significant asset. It has a large and growing workforce that is increasingly skilled and digitally adept. This demographic dividend can fuel economic growth for decades to come through higher productivity, innovation, and entrepreneurship.

* Policy Reforms: The Indian government has been actively pursuing various reforms to improve the ease of doing business and attract investment. Initiatives like the Production-Linked Incentive (PLI) scheme are encouraging manufacturing and boosting exports. The focus on digitization and a simplified tax structure further enhances the business environment.

* DII and Retail Investor Support: While Foreign Portfolio Investors (FPIs) can be a source of volatility, a strong and growing base of Domestic Institutional Investors (DIIs) and retail investors provides a crucial counter-balance. When FPIs sell, DIIs and retail investors, often through mutual funds and SIPs, can absorb the selling pressure. This makes the Indian market less dependent on foreign capital flows and more resilient to external shocks.

* Corporate Earnings Outlook: After a period of muted growth, corporate earnings in India are showing signs of a recovery. With a resilient domestic economy and a focus on cost rationalization, companies are expected to report better profit margins. A sustained recovery in corporate earnings is a major catalyst for a long-term bull market.

Investment Strategy to follow 

For long term horizon, a common man should adopt a strategy that balances growth with risk mitigation. This period of 3 to 5 year is long enough to ride out short-term market volatility but not long enough to fully absorb a major, prolonged downturn.

Strategy one should follow 

* Systematic Investment Plan (SIP): This is arguably the most effective strategy. Instead of investing a lump sum, start a SIP in a few well-researched equity mutual funds. This practice, known as dollar-cost averaging, ensures you buy more units when the market is low and fewer when it's high. It removes the pressure of trying to time the market and builds discipline.

* Diversification: Don't put all your money into a single fund or a single type of investment.

* Across Asset Classes: Maintain a balanced portfolio that includes a mix of equity and debt mutual funds. For a 3-5 year horizon, a hybrid fund (which invests in both stocks and bonds) can be a great option. A general allocation might be 60-70% in equity and 30-40% in debt, depending on your risk appetite.

* Within Equities: Opt for diversified equity mutual funds, such as multi-cap or flexi-cap funds, which have the flexibility to invest across large-cap, mid-cap, and small-cap stocks.

* Focus on Quality and Fundamentals: When choosing mutual funds, prioritize those from reputable fund houses with a strong track record of consistent performance across different market cycles. Look for funds managed by experienced fund managers who focus on fundamentally strong companies with good management and sound business models.

* Rebalancing: Periodically review your portfolio (e.g., annually) and rebalance it to maintain your target asset allocation. For instance, if your equity allocation has grown to 80% due to strong market performance, sell some equity units and invest in debt to bring it back to your original target of 60-70%. This helps in "booking profits" and keeps your risk exposure in check.

* Stay Patient and Avoid Panic: It's crucial to stay the course. Avoid the temptation to withdraw your investments during market corrections or panic selling. Remember that market volatility is a normal part of investing. Sticking to your plan will likely yield better results than trying to time the market.

Thank you for reading my post. My goal is to help you navigate these times wisely. Please feel free to direct message me if you'd like to discuss this further.

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

AMFI Registered Mutual Fund Distributor

ARN-0209 | EUIN-E030691

Disclaimer: Mutual fund investments are subject to market risks. Please read the offer documents carefully before investing.

Generating ₹1,00,000 Monthly Passive Income from Equity Mutual Funds: A Comprehensive Guide

Generating a substantial passive income of ₹1,00,000 per month through equity mutual funds requires a well-structured approach, a significant investment corpus, and a disciplined withdrawal strategy. 

1. Building the Investment Corpus:

• Determine Corpus Size: Calculate the required investment corpus based on your desired monthly income and expected rate of return. A common approach is the "4% rule," which suggests you can safely withdraw 4% of your investment corpus annually without depleting it significantly. For ₹1,00,000 monthly income (₹12,00,000 annually), a corpus of approximately ₹3 crore may be needed.
• Invest Strategically: Choose a mix of high-performing equity mutual funds (e.g., flexi-cap, multi-cap, large & mid-cap) to maximize potential returns. Start with a diversified approach, allocating a significant portion of your portfolio to equity funds for long-term growth.
• Systematic Investment Plan (SIP): Invest regularly through SIPs to benefit from rupee-cost averaging and potentially mitigate market volatility. SIPs also instill disciplined investing habits.
• Reinvestment: Reinvest dividends and capital gains back into your portfolio to leverage the power of compounding. 

2. Generating Passive Income:

• Systematic Withdrawal Plan (SWP): Once your corpus reaches the desired level, start a SWP from your equity mutual funds to generate a regular income stream.
• Withdrawal Amount & Frequency: Decide on the fixed amount you wish to withdraw monthly (e.g., ₹1,00,000) and the withdrawal frequency (monthly, quarterly, etc.).
• Tax Efficiency: Optimize your SWP strategy for tax efficiency, potentially timing withdrawals to benefit from lower long-term capital gains tax rates. 

3. Choosing the Right Equity Mutual Funds:

• Analyze Historical Performance: Evaluate past performance of equity mutual funds, considering both absolute returns and returns relative to benchmark indices and peer funds.
• Consider Fund Manager Expertise: Look for funds with experienced and skilled fund managers with a proven track record.
• Evaluate Expense Ratio: Choose funds with reasonable expense ratios to minimize costs and maximize returns.
• Diversify Across Categories: Consider diversifying across different equity mutual fund categories (e.g., large-cap, mid-cap, small-cap, flexi-cap, multi-cap) to spread risk and potentially enhance overall returns. 

Important Considerations:

• Time Horizon: Building a substantial corpus takes time and requires a long-term investment horizon.
• Risk Tolerance: Equity mutual funds are subject to market risks, so assess your risk tolerance before investing. Choose a strategy aligned with your comfort level.
• Inflation: Factor in inflation while planning your monthly income requirements and adjust your SWP withdrawals accordingly.
• Professional Advice: Consider consulting a SEBI-registered investment advisor for personalized guidance and fund recommendations. 

Note: Past performance is not indicative of future returns. Market conditions can change, and equity mutual fund investments are subject to market risks. 

Disclaimer: This information is for educational purposes only and should not be considered as investment advice. Consult with a qualified financial advisor before making any investment decisions.

Views are Personal!

Thank you for your continued partnership and trust in us. We look forward to supporting your investment journey.

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

AMFI Registered Mutual Fund Distributor

ARN-0209 | EUIN-E030691

Note: Past performance is not indicative of future returns. Market conditions can change, and equity mutual fund investments are subject to market risks. 

Disclaimer: This information is for educational purposes only and should not be considered as investment advice. Consult with a qualified financial advisor or Mutual funds distributor before making any investment decisions.

The removal of GST on Individual Life and Health lnsurance Premiums

The impact of a nil GST on Individual life and Health insurance premiums is a significant reform that primarily benefits policyholders by making insurance more affordable, while creating both challenges and opportunities for insurance companies and agents. The reform is a major step toward increasing insurance penetration in India.

For Policyholders: A Direct Benefit

For policyholders, the most immediate and tangible impact is the reduction in the cost of premiums. Previously, an 18% GST was applied to life and health insurance premiums. With the GST rate now at nil, this tax burden is completely removed. This makes policies more affordable, especially for the middle class and first-time buyers who may have found the previous costs prohibitive. For example, a policy that cost ₹11,800 (including ₹1,800 GST) will now cost just ₹10,000. This is expected to:

 * Increase affordability and encourage more individuals to buy insurance.

 * Widen the protection gap, especially for critical segments like term and health insurance.

 * Enable higher coverage, as policyholders can now afford a greater sum insured for the same outlay.

For Insurance Companies: 

Navigating a Mixed Bag while the move is a boon for consumers, insurance companies face a more complex situation. Their primary challenge is the loss of Input Tax Credit (ITC). Under the previous tax regime, insurers could claim ITC on GST paid for their operational expenses, such as agent commissions, rent, and marketing. Since premiums are now GST-exempt, they lose the ability to offset these costs.

 * Increased Operational Costs: The GST paid on these inputs becomes a direct cost for the company, potentially leading to short-term margin pressure.

 * Pricing Adjustments: Insurers may need to slightly adjust their base premium rates to account for the lost ITC. However, even with these adjustments, the final premium amount is still expected to be lower for the consumer.

 * Long-Term Growth: In the long run, the reform is anticipated to boost insurance penetration and sales volume. This increased demand could lead to economies of scale, helping companies offset the initial cost pressures and achieve sustainable growth.

For Insurance Agents: 

A Boost in Business Insurance agents and brokers are set to benefit from the policy change. The increased affordability of policies is expected to drive higher demand, leading to a surge in sales volume.

 * Higher Sales and Commissions: With policies becoming easier to sell, agents can expect an increase in the number of policies sold, which will directly translate to higher commission earnings.

 * Easier Sales Pitch: The removal of the 18% tax component makes the product more attractive, simplifying the sales pitch and helping agents acquire and retain customers more effectively.

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

Registered Insurance Agent With LIC OF INDIA AND Bajaj Allianz general insurance co Ltd.

Disclaimer: *Views are Personal!* 

Insurance is a subject matter of solicitation

Market ahead Dec 20204

The Indian equity market's performance in the current months is expected to be influenced by various factors which including 

1. Economic growth.

2. Inflation rates.

3. interest rate trends.

4. company performances

5. Global trends.

Currently, the Nifty index is experiencing a negative trend. 

In terms of market trends, the Indian equity market is expected to be driven by factors such as 

1. Earnings reports.

2. Economic data.

3. Global events. 

Investors are advised to keep a close eye on these factors and adjust their investment strategies accordingly.

Some Strategies for investing in the equity mutual funds include:

- *Long-term investing*: Investing in a quality mix of Flexicap, Multicap, focus Funds for the long term, regardless of short-term market fluctuations.

- *Sectoral investing*: Investing in a specific sector Funds that are expected to perform well, such as technology or healthcare.

- 

- *Diversification*: Spreading investments across different asset classes, sectors to minimize risk.

As per my learning the Indian equity market has been experiencing significant growth, driven by factors like economic reforms, digital penetration, and increasing investor awareness. 

Regarding investing in equity mutual funds, it's essential to consider your financial goals, risk tolerance, and investment horizon. 

I like Flexicap and multicap funds which can be a good investment option for long-term growth.

Some popular equity mutual fund options:

- *Large-Cap Funds*: Invest in established companies with a strong track record.

- *Mid-Cap Funds*: Invest in medium-sized companies with growth potential.

- *Small-Cap Funds*: Invest in smaller companies with high growth potential.

- *Sectoral Funds*: Invest in specific sectors like technology, healthcare, or finance.

Remember, investing in equity mutual funds involves risks, and it's essential to understand the risks and rewards before making a decision.

Thank you for being the wind beneath our wings!

Views are personal!

Regards,

Ritesh Sheth CWM®

(Chartered wealth manager)

Amfi registered Mutual fund distributor under ARN-0209 EUIN- E030691. 

Date of initial registration - 16-AUG-2002 validity of ARN up to - 01-Oct-2027 for Transacting in Mutual Fund's Regular Plans.

And 

IRDA Registered

life Insurance (LIC) Agent Code : 44189C

General Insurance (BAGIC) Agent Code : 10000308

Disclaimer:

*Mutual fund Investments are subject to market risk please read the offer documents before investing*

*This message is intended solely for learning and understanding purposes This is not an invitation for any investment.*

F I.R.E (Financial Independence, Retire Early) movement

F I.R.E (Financial Independence, Retire Early) movement:

Understanding the Concept of FIRE

This concept FIRE was conceptualized and first mentioned in a best selling book in 1992 called your money your life by vicki robin…but since then there are many that have adopted the method and succeeded while it may not have worked for some. But the core premise is extreme frugality and aggressive retirement. 

FIRE is a movement that encourages extreme frugality and aggressive saving to achieve financial independence and retire early. Instead of retiring at 60, you could potentially retire by 45 or even earlier. The core idea is to save aggressively, invest wisely, and create a sustainable income stream to support your retirement.

Calculating the FIRE Number

To calculate your FIRE number, you need to determine your yearly expenses and multiply it by 25. This will give you the amount you need to save to achieve financial independence.

Example:

Yearly expenses: ₹500,000

FIRE number: ₹500,000 x 25 = ₹12,500,000

You need to save ₹12,500,000 to achieve financial independence.

Calculating Monthly Investment/Savings

To calculate your monthly investment/savings, you need to determine how much you need to save each month to reach your FIRE number.

Example:

FIRE number: ₹12,500,000

Timeframe: 10 years

Monthly investment/savings: ₹12,500,000 / 120 months ≈ ₹104,167 per month

Your portfolio should be well diversified across different asset classes like Stock, Bonds, Real estate etc.

i strongly believe investor should invest thru Mutual funds as they provided almost all diffrent asset classes.

Planning for Emergencies and Inflation

To plan for emergencies and inflation, you should:

- Create an emergency fund to cover 3-6 months of living expenses

- Invest in assets that historically perform well during periods of inflation, such as precious metals or real estate

- Consider inflation-indexed instruments, such as inflation-indexed bonds.

- Review and adjust your portfolio regularly to ensure it remains aligned with your goals and risk tolerance

Balancing Current Enjoyment with Future Goals

FIRE doesn't mean you can't enjoy your life before retirement. You can still take vacations and enjoy hobbies, but you need to prioritize your spending and make conscious decisions about how you allocate your resources.

Safe Withdrawal Rate

The safe withdrawal rate is the percentage of your retirement portfolio that you can withdraw each year to support your living expenses. The commonly cited safe withdrawal rate is 3-4% of your portfolio.

Alternate Source of Income

Having an alternate source of income can provide a safety net and allow you to pursue early retirement with more confidence. However, it's not a requirement for achieving FIRE.

Different Types of FIRE Strategies

There are different types of FIRE strategies, including:

LEAN FIRE: A more extreme version of FIRE that involves living very frugally to achieve financial independence quickly.

FAT FIRE: A more relaxed version of FIRE that involves saving and investing aggressively, but still enjoying some luxuries.

COAST FIRE: A strategy that involves saving and investing aggressively early on, and then "coasting" into retirement with a smaller portfolio.

Health Insurance and Life Insurance count as committed expenses

I believe before Saving or Investing for FIRE you need to first consider uncertain events it changes all equations of your Plan, goals or dreams and cannot be achieved.  

Remember, achieving FIRE requires discipline, patience, and a well-planned strategy. 

If you're new to investing or unsure about how to manage your investments, consider consulting a financial advisor.

Start by assessing your finances, creating a budget, and investing regularly. 

Stay informed, adapt to changes, and prioritize your financial goals.

So, Get in touch with me to understand more about F.I.R.E

Ritesh Sheth CWM®

(CHARTERED WEALTH MANAGER)

Tel: 9930444099

Email: ritesh@myfundguide.com

Disclaimer:

*Views are Personal!*

*Consider consulting a financial advisor*

*Mutual fund Investments are subject to market risk please read the offer documents before investing*

*This message is intended solely for learning and understanding purposes This is not an invitation for any investment.*

Ritesh Sheth Amfi registered Mutual fund distributor under ARN-0209 EUIN- E030691. Date of initial registration - 16-AUG-2002 validity of ARN up to - 01-Oct-2027 for Transacting in Mutual Fund's Regular Plans.And IRDAI Registered agent for life Insurance (LIC) Agent Code : 44189C and General Insurance (BAGIC) Agent Code : 10000308.

Over Rs 1 crore! This mutual fund SIP trick will help you double your maturity amount - here is calculation

While making any investment, an investor's major goal is to become rich as soon as possible. Some of them do achieve their investment goal with the available limited investment tools.

"Successful investors don't do different things, but they do things differently."

Let's take mutual fund investments. A person who is in the nascent phase of career generally chooses a systematic investment plan (SIP), which is one of the most popular parts of mutual fund investment. According to my experience over last 30 years, a mutual fund investment will give at least 10 to 12 per cent return if the investment is for long-term. 

However, I am with opinion that after one begins an SIP, one should think of increasing the SIP amount annually in sync with one's salary hike. It will help him or her maximise returns.

Speaking on the mutual fund SIP investments, "Mutual Fund is subject to market risk and one should have the appetite to take risk."

In the long-term Equity market linked mutual fund sip will give at least 12 per cent return but when I say long-term, then it should be an investment for not less then 15 years."

let's assume that we starts a mutual fund SIP of Rs 6,000 for 25 years and return for the same period is 12 per cent. Then as per the mutual fund calculator,  future estimated amount will be Rs 1,13,85,811.

However, we should increase SIP amount annually as salary or income grows. In that case it will be able to maximise money's worth.

Let's see how mutual funds SIP step-up plan will impact future estimated amount after 25 years if the same Rs 6,000 SIP is increased 10 per cent per annum. As per the mutual fund calculator, future estimated amount after 25 years at 12 per cent returns will be Rs 2,36,92,246.

Out of these Rs Rs 2,36,92,246 future estimated amount, net investment will be Rs 70,80,988 and rest Rs 1,66,11,258 is gain earned throughout the investment period of 25 years.

So, this 10 per cent step up in the Mutual Funds SIP will jump from Rs 1,13,85,811 to Rs 2,36,92,246, which is more than double from the normal mutual funds SIP investment.

Call me for detailed discussion and information about schemes for achieving such future values.

Ritesh Sheth

Chartered Wealth manager CWM®

9930444099

E-mail: riteshdsheth@gmail.com

10 Reasons You’re Not Rich Yet

10 Reasons You’re Not Rich Yet

As a Investment and insurance agent, I have spent many years helping other people overcome financial stumbling blocks so they can become rich. Ironically, the one person I have had the most trouble helping is myself.

Being “rich” can mean different things to different people, but I believe it means having the financial freedom to achieve your goals and live the life you want. 

I am great at giving advice; I am not always so great at taking my own advice (know anyone like that?). So, when it came to helping my clients understand why they weren’t rich yet, the easy part was explaining the culprits, because I was all too familiar with most of them.

Regardless of our upbringing, education, profession or lifestyle, most of us are not where we want to be financially and our reasons are probably more similar than different. The good news is that it is never too late to become rich if you, like me, are ready to own up to the reasons you’re not and do something about it.

Want to know why you aren’t rich yet? Keep reading.

#1: You spend money like you’re already rich.

Sure, it feels good to buy expensive things, whether it’s a luxury car, designer clothes, a big house in the burbs, or a tropical vacation. Even if you don’t necessarily buy pricey items, if you consistently buy stuff you really don’t need, it still adds up fast (Rs.30000 trip to Target for toothpaste?). But the shopping high only lasts until the guilt and regret set in or the credit card bill arrives. Most of us are guilty of living beyond our means and using credit cards more than we should. The problem is that as long as we continue to spend more than we have, we can’t start building wealth. Chronic overspending and high-interest, revolving credit card debt are your worst enemies when it comes to financial success. Spend like you’re poor and you are much more likely to become rich.

#2: You don’t have a plan.

Without clearly defined short, mid and long-term goals, becoming rich will just seem like an unattainable fantasy. And that turns into your go-to excuse for why you shouldn’t bother saving or stop overspending. As we say in the financial industry: those who fail to plan, plan to fail. Creating a financial plan may seem overwhelming or intimidating, but it doesn’t have to be. Whether you do-it-yourself or decide to work with a financial professional, the process simply starts with prioritizing your goals and writing them down. Put that list where you can see it on a regular basis. Visual reminders go a long way in helping us stay on track.

#3: You don’t have an emergency fund.

I know, you’ve heard it a hundred times: you need to have at least six months of income saved in an emergency fund. And yes, it’s much easier said than done. However, I’ve seen too many people (including myself) get hit with a major unplanned expense, whether it’s a car or home repair or a medical bill, or an unexpected job loss, accident or illness that’s led to a drastic reduction in income. When these things happen–and they do, more often than you might think–not having a financial safety cushion can make the situation much, much worse. If you’re forced to rely on credit cards, you’ll end up sinking deeper into debt instead of, yes, saving to become rich.

#4: You started late.

With every year or month that goes by without saving, your chances of becoming rich decrease. Time and compounding interest are your two best friends when it comes to growing money, so wasting them really hurts. Just like exercising, the hardest part of saving is starting. Even if you’re in debt, making little money or have a lot of expenses, you can still always save something — even if it is a small amount. The sooner you get yourself into the habit of saving — regardless of how much — the easier it will be for you to continue and eventually increase those savings. I like to think of saving as a muscle you have to work out and build with practice. Even if you start saving late, you can still become rich if you’re committed enough. But you need to start. Now.

#5: You’d rather complain than commit.

“Life is too expensive.” “I’ll never get out of debt.” “I don’t make enough money.” “Investing is too risky.” I’ve probably heard every excuse for why someone isn’t saving, investing or planning in general, and I’ll admit I’ve used a few of them myself from time to time. It’s easier to be lazy and let bad habits fester than to commit to –and follow through on — changing them. It’s no wonder obesity and debt are epidemics in our country, and that millions of Americans have had to push off retirement. As long as the complaining, excuses and finger-pointing persist, so too will not becoming rich. Instead, take responsibility for your bad habits and focus on what you can do to change them. Then do it.

#6: You live for today in spite of tomorrow.

I get it. It is really hard to think about retirement and other distant fantasies when we have needs and plenty of wants now. The bills have to get paid, the family must be fed, momma needs a vacation — and a new wardrobe to go along with it. The problem is that impulsive and overly-indulgent behavior commonly lead to credit card debt, spending money you might have otherwise saved and, yes, not becoming rich. Do yourself a favor: Ditch the “buy now, worry later” mindset and instead, adopt a “save now, get rich later” mindset.

#7: You’re a one-trick investor.

You might be lucky enough to become rich by betting all your money on one type of investment. Just like you might be lucky enough to win the lottery. But that’s not a strategy for getting rich (at least, not one I’d ever recommend).

One of the worst financial mistakes you can make is putting all your money eggs in one basket. Doing so puts you at too much risk, whether it is being too conservative or too aggressive. Sure, the stock market is on a run and real estate is on an upswing again, but are you prepared for when the tides turn? Because they will. And if you are invested in all fixed-income securities like CDs, bonds and annuities and think you’re safe, inflation should make you think again. Your investment portfolio needs to include a good mix of investments with varied levels of risk and return potential and liquidity (so you can get your money when you need it).

#8: You don’t automate.

Here’s the secret to saving: Automation. Saving is seamless when it’s automatic. Unfortunately, we are not born to be savers. We are impulsive and greedy by nature. Being responsible requires much more discipline. However, automation forces us to be responsible without too much effort. And all it requires is setting up regular transfers from a salary or bank account to a savings or Mutual investment account. Without it, we are much more likely to spend money we could be saving. Even if it is a seemingly small amount that you automate, those steady investments can make a big difference over time. Automate whatever you can whenever you can; just be careful to avoid overdrafting your account and try to increase your savings amount periodically.

#9: You have no sense of urgency.

You might think you don’t need to worry about getting out of debt or saving because someone, or something else will save you. Maybe it’s a pay raise, a new job, an inheritance, a rich spouse, or the lottery you’re counting on. Whatever “it” is, you use it as an excuse to put off taking steps on your own to become rich. The problem is that very little in life is certain. Who knows what will actually happen, or not happen, so why not focus on what you can control now? Save now and save yourself — just in case something, or someone, else won’t.

#10: You’re easily influenced.

Maybe you live with a chronic overspender or a typical day out with your girlfriends involves shopping. Or maybe it’s your inner “Real Housewife” that you sometimes can’t control. We all have negative influences in our lives that threaten our chances of becoming rich. The superficial, materialistic, sensational culture in which we live is probably the biggest one. The suffocating swirl of media that goes along with it makes it ten times worse. The trick is not giving in to temptation. How? Some of it is making conscious choices to avoid putting yourself in vulnerable positions. But most of it is having the willpower to keep the goal of becoming rich in the front of your mind, especially when you are tempted to sabotage yourself.