RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

5 Ways You Can Grow Rich with Less Income

down-arrow
5 ways You can grow rich with less income
October 23, 2023

Table of Content

 

In this policy, the investment risks in the investment portfolio is borne by the policyholder

There is a common misconception among people that in order to create wealth and grow rich, you need to earn a six-figure income. While there’s no denying that it can definitely accelerate your journey to riches if you have a high income, all is not lost for people in the early or mid stages of their careers.

Even if you are earning only a few thousand rupees each month, you can achieve your financial goal of wealth creation with the right strategies. What’s more, there’s not just one way to do this.

Check out 5 different strategies that you can use to grow rich — even with a low income.

There's no one-size-fits-all approach to growing rich even on a low income. To achieve your long-term goal of improving your financial stability and creating wealth, you can choose from different actionable strategies. Some such strategies are outlined below.

  • Have a Strict Budget
    A budget is the building block for any kind of financial success. If you want to grow rich on a limited income, you need to know how to put that income to the best use possible. And here’s where a budget is crucial. It helps you track how each rupee you earn is being spent.
  • Cut Discretionary Spends
    As an add-on to creating and sticking to your budget, you must also make efforts to cut discretionary spends. This will help you save more of your limited income and put you on the path to wealth creation.
  • Invest Small Sums Regularly
    Budgeting and cutting unnecessary expenses can increase your savings. But your savings can only transform into wealth if you invest your money. You can start off by making small but consistent investments in assets that have the potential to generate above-average returns and set off these investments with stable options like deposits.
  • Avoid Taking on High-Interest Debts
    No matter how much you save and invest, if you have too much debt, your financial situation may eventually worsen. This is particularly true for high-interest debts like credit card liabilities and personal loans. A better alternative to these avenues is to build an emergency fund that can prevent you from resorting to debt in case of any contingency, so your income is free to be invested instead.
  • Include ULIPs in Your Portfolio
    With a ULIP investment, you get a life cover as well as the opportunity to create wealth with customisable market-linked investments. By investing small sums on a regular basis in the best ULIP plan of your choice, you can add a choice of funds to your portfolio, like equity funds, debt funds and hybrid funds.
    The HDFC Life Smart Protect Plan is one such Unit Linked Insurance Plan that caters to your long-term goal of financial security. One of the best ULIP plans for anyone chasing the goal of protection cover and the need for long-term wealth creation; it allows you to pay your premiums on a Monthly, Quarterly, Half-Yearly, Annual basis and continue to invest in your preferred ULIP funds over the entire policy term. This plan also allows you to choice of 5 fund options with unlimited free switching of funds (available under Level Cover and Decreasing Cover options).

Conclusion

The strategies outlined above can help you get closer to your ultimate goal of wealth creation. You need not implement them all simultaneously. You could start by creating a budget and once you diligently save up for 3 months or so, you can start investing in a ULIP at periodic intervals.  

This will help you put your savings to good use and make it easier to achieve your goals, even if you are earning a comparatively lower income than your peers.

Related Article:

ARN - ED/09/23/4673

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Retirement Dilemma: ULIPs vs. ETFs: Which One Is Right for You?

Retirement Dilemma: ULIPs vs. ETFs: Which One Is Right for You?

Discover the key differences between ULIPs and ETFs, exploring the unique benefits of each to help you make the best investment choice. Learn which option aligns with your financial goals.

Seizing Market Opportunities: A Safe Bet for Mid-Career Professionals

ULIPs in a Rising Market: Should You Switch or Stay Invested?

Can Your Investments Outrun Inflation? The Power of Compounding

Understand the power of compound interest and how ULIPs can enhance your compound interest investments. Discover effective strategies to outpace inflation and grow your wealth.

Can Your Investments Outrun Inflation? The Power of Compounding
3 Things to Know Before Discontinuing ULIP Policy Previous
Money Management Tips to Improve Your Finances Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

HDFC Life Smart Protect Plan (UIN: 101L175V01) is the name of the Unit linked product. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors.

For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Popular Search

Popular Searches