'Building Wealth' Basics 101
1. Earnings - Investment = Expenses.
Invest first and then spend. Not the other way round.
2. Set SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) investment goals.
3. Put aside an emergency fund for 6-12 months' worth of expenses.
4. Buy health insurance to protect your family.
5. Buy Term Plan (not ULIPs).
6. Start investing according to your unique requirements (financial goals). Do not copy others.
7. Don't change your investments frequently to chase high returns.
8. Diversify your portfolio by investing across multiple options within the same asset class.
9. Do adequate research to understand what you are investing in.
10. Periodically check your portfolio and make changes when necessary.
This is how one can be financially healthy.