Here are a few more steps which will create an enormous amount of wealth for you:

  1. Get a good sensible degree: Get an Engineering degree from IIT, or say a CA degree, a law degree  – if you are an average student, the chances of making decent money improves with a good degree. While at getting that degree if you can make an app and sell it to Facebook, Google, or Amazon, by all means do that. If it fetches you $ 20 Million, you still need to read the post further.
  2. Earn a lot of money: It is your job that pays for all your needs, luxuries, wants, super luxuries…so go and Earn a lot of money. If the journey takes you to Harvard to do LLM or Carnegie Mellon to do Masters in Engineering, go. People resist travelling for education and for a good job. Parents should push them for a scholarship – plenty are available for higher education. Get a good degree, and earn a lot of money.
  3. Save till it hurts: ‘Things’ do not really matter. Stop piling up things. Acquire experiences – travel on a shoestring budget instead of wasting on coffee / beer / movies. Get the ratios right. Save till it hurts. Remember if you know how to live on HALF the salary that you make, your retirement corpus will be ready earlier. This has to become the base with which you will invest in assets that give fluctuating returns like equities and real estate.
  4. Learn about Personal Finance: You know exactly how, right?
  5. Do not buy a house: The marketing propaganda from the real estate industry has always centered on a house is an investment, and this is reflected in the fact that the youngsters think, so let us see what Shiller has to say “Buying a home is the best long-term investment a person can make.” Well, well.From 1890 to 2012, the inflation-adjusted return on a house was 0.17%. This means if you bought a house for $5,000 in 1890 it’d be worth $6,150 in 2012.That’s a gain of $1,150.Over the same time period, the inflation-adjusted return of the stock market was 6.27%. This means if you invested the same $5,000 in an index fund it’d be worth $8 million.

    That’s a gain of $7,995,000.

    Do you still think a house is the best long-term investment?

    Yes, you have to live somewhere, and nobody can live in an index fund. But if you buy a house, live in it, and think it’s the best investment you’re delusional.

    Now, I’m not against home ownership (I own a nice home and benefit if you buy – I own shares in the companies which benefit with construction, but I am against anyone making the biggest financial decision in their life without first running the numbers.

  6. Make investing along with repaying loans, buying a car, attending a wedding, …do not postpone investing..

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