Wealth creation: 25 key money lessons you should follow to make it big in fiscal 2025

livemint.com:

Amid a flurry of deep fake videos by top bosses of NSE and BSE, how can investors stay cautious and safe 1. Stay away from Mr Market: The price quoted by Mr Market has no relevance if you don’t intend to sell your securities. It’s pointless to see the price every day unless you intend to buy or sell a stock that day.

Mr Market is an allegory coined by legendary investor and author of ‘The Intelligent Investor’ Benjamin Graham to describe irrational or contradictory traits of the stock market. 2. Stay true to long-term goals: The long-term goals could be to buy a house, or children’s education, or save for retirement.

These goals are non-negotiable. Do not compromise on these goals regardless of the temptation to spend or invest for a short-term goal. 3.

Wealth generation is the key: Earning dividends from shares is a bonus of sorts. And little stock appreciation is exciting. But the key objective of investing is, or should be, to generate wealth which can happen primarily via equity investment.

4. Investing is not for the faint-hearted: Markets are meant to be volatile. So, when the market surges or crashes, you should not redeem.

Be strong and don’t lose heart. 5. Continue your SIPs during market decline: Instead of buying more during a bear phase, investors tend to stop their SIPs believing that the market is not right for investing.

Whereas the phenomenon of ‘rupee cost averaging’ says that investors should invest across different price points to get a fair average price and to maximise the chance of earning a higher profit. 6. Importance of portfolio: The ideal ratio between equity and debt is 70-30 in ideal circumstances.