Building wealth isn’t just about saving more money. Many individuals feel financially stuck despite setting aside a large portion of their income, while others with smaller savings feel in control. Chartered Accountant and Zactor Money co-founder Abhishek Walia highlights that the real difference lies in having a clear strategy for your finances rather than simply practicing discipline.
According to Walia, money that sits idle, no matter how much, fails to work for you. “Saving without a plan feels like effort without progress,” he notes. People often work hard, reduce expenses, and accumulate savings, yet remain uncertain about the purpose of their money. Without direction, savings remain static—safe but underutilized.
Step 1: Create an Emergency Fund
The first step in Walia’s approach is ensuring your money has a clear purpose. He emphasizes setting up an emergency fund to cover unexpected expenses. This is not just about having cash available; it’s about providing a financial safety net that allows other investments to grow without disruption. Walia explains that a well-structured emergency fund ensures you don’t need to dip into investments meant for long-term wealth when urgent costs arise.
Step 2: Allocate for Short-Term Goals
Once the emergency fund is in place, the next focus should be short-term financial objectives. Walia recommends assigning specific portions of your money to goals such as vacations, a new vehicle, or home renovations. These funds should be placed where they are secure but still earn reasonable returns. By segmenting money according to purpose, individuals gain clarity on how each portion contributes to overall financial progress.Step 3: Invest for Long-Term Wealth
The final step targets wealth creation over time. Walia stresses that money grows fastest when it is actively employed through strategic investments. Long-term wealth planning can include mutual funds, equities, or other growth-oriented instruments tailored to your risk profile. With clarity and structure, even average saving habits can yield substantial results.Walia concludes that simply increasing savings isn’t enough. Organizing money according to purpose—emergency fund, short-term goals, and long-term growth—ensures that your finances are aligned with your objectives. When each portion has a designated role, money no longer sits idle; it works for you, generating value even while you sleep.
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