Even if you are a salaried person, you can create as much wealth as you want! There are few ground rules which you need to follow to meet your goals. Many people do not understand the fact that it is not how much you earn, but how much you invest and how long you stay invested which matters.

Here are the top 5 tips for a salaried individual to help create wealth in long run –

1. Start early, stay committed

   Starting early is the most important aspect of wealth creation. While you are still young, time is on your side. The longer you are invested, the greater can be the wealth created. The benefit of compounding plays out more rigorously over the long haul. Discipline is another virtue that you need to cultivate with respect to investments.
   
   Also Read - What is Wealth Creation?
   
   As a salaried individual, the income flow is typically monthly; you may want to plan your investments that have a monthly commitment. It is best to align your investment in line with the frequency of your cash flow. The entire investment planning has to be done comprehensively over the long term.

2. Don’t just save, invest

   Many individuals are very prudent with how they spend their income; however, they merely save the balance amount. The money just accumulates in the savings bank account may be earning a relatively less interest rate. It is important to invest the amount saved to ensure that your money continues to work for you and creates the required wealth in long run.
   
   Choosing the correct investment avenue can be a herculean task and you may seek the help of a professional for holistic personal financial planning advice. Investments have to be evaluated based on personal preferences, risk profile and return expectations.

3. Avail all your tax benefit

   Many of us do not give much importance to availing tax benefits, this could be due to lack of awareness or the effort may seem enormous. However, tax savings have been simplified over the years. It is very important to educate yourself about all the ways in which you can avail tax benefits on your income.
   
   Remember to route such savings into investments aligned to your investment goals. Just like every drop makes the ocean, every amount that you invest brings you closer to your corpus.

4. Align your investments to your financial goals

   Financial planning is not a stand-alone exercise. You have to ascertain the financial goals, their timeline and conduct the investment planning as per these financial goals. Depending on the stage of your life, the financial goals may change; hence, it is important to revisit your financial goal at relevant junctures.
   
   For example, when you start your career, you may want to plan for your vacation, luxury car and wedding. Subsequently, after marriage, you may start planning for buying a house, bigger car and at some point, children education; family vacation may come into the equation. There is a need to start planning for your retirement as early as possible to be able to build a substantial corpus over time.

5. Track your financial planning

   Many of us make the cardinal mistake of not tracking our investments regularly while investing as per our financial goals is only half of the financial goal planning effort. There is a need to track your investment planning methodically to ensure that they are building the required corpus for the financial goal.
   
   Further, it helps in assessing that the portfolio stays within the risk–return profile that you are comfortable with. Financial planning involves building a portfolio with complementary assets, which includes a prudent addition of equity, debt, gold, real estate and other investment avenues in line with your ideal asset allocation requirement. Typically, one looks at the debt-equity exposure in line with the age, financial goal, tenure and individual risk appetite. The equity exposure is meaningfully brought down over the years as one age and nears retirement.

As a salaried individual, you probably are busy dabbling many deadlines and meetings. It is important to find the time to dedicate some effort to your personal financial planning. This can go a long way in helping you achieve your dreams.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.