People always make sure they build their habits positively towards their health, eating habits, reading etc. They at times forget that building a habit towards your finance is also equally important for the long run.

Today I am here to tell you how I slowly built my habits towards my financial planning.

As I have said that habits, in which ever aspect, should be such which are consistent and do not give short term benefits only. Likewise, on that saying, I would like to suggest that never invest your valuable money in the stock market with the expectation for jackpots, lottery etc. as even though it will give you immense happiness, it will be short lived.

While investing or trading money, one should always maintain consistency.

Today I will explain you how building your own portfolio will make difference in taking your first step towards building financial habit.

In market we have various different sets of people, some are students, some are working professionals, some are business orientated people having regular income, some are professionally involved in stock market. Every one working in the society has a regular source of income but to secure your future financially one should focus on multiple sources of income.

Diversifying of funds plays a very important role in building your portfolio. Saving a part of earnings is always a MUST in one’s life- YOU SAVE, YOU INVEST, YOU HARVEST.

I would like to share one of my life experiences here as an example regarding how I managed to save, invest and multiply money. In my college days, like most of us, every month my father gave me pocket money of some amount. I always tried to save money after spending on junk food, fuel, etc. As I had started to build a keen interest in Indian stock market, I started studying its concepts and started investing, be it 10 quantity or 100 quantity, the money I had saved from the pocket money. Like everyone I started tasting profits and tried making more money by purchasing and selling shares but over a period of time I have tasted losses too.

As I proceeded along with time, I started building more interest in stock market and started to build my portfolio. Previously while trading in the stock market, I never tried to analyse or study the fundamentals of the company or the technical aspect of it. When I decided to build my portfolio, I started to slowly make drastic changes in my approach towards trading in the Indian stock market. I started to make sure and build a habit of first selecting the sectors and buying some shares of the top performing stocks. This is how I slowly started to invest my share of pocket money in the Indian stock market after much technical analysis of every company.

Another most important habit that I tried to inculcate was that instead of utilizing the strategy to first save, invest and then spend the left amount, I reversed the strategy. I started to build my own portfolio by every month starting to buy shares until and unless the scrip made a decent profit and once the set target was achieved, I would sell the stocks in profit and again reinvest the same to another sector. I went on repeating this method every month and managed to make a decent profile at the end of every month. By following this habit, by the end of my graduation days, I had more than 25 scrips, 4 sectors, and almost 3500 plus quantity stock where my portfolio was in profitable stage of Y0Y (22%) returns in a span of 4 years. Even though it may not seem to a big or an attractive figure, it was always greater than 4% of my savings account.

These above-mentioned habits have helped and motivated me a lot in various ways and helped me to build more interest in the Indian stock market. After my graduation, where I tried to build my own permutations and combinations, I started to work in one on the top investment bank DEUTSCHE BANK, where I learnt various skills, key points and also received a brief knowledge regarding the international stock market. At that particular point of time, as I had no monetary commitments/ responsibilities, I started to utilize my earnings and investing it in the stock market.

In this way, I started building my habits after much studying and analysing the Indian stock market. I never stopped investing even though I also faced losses like every normal person does. I learnt from my every loss and kept building my portfolio in order to have multiple sources of income.

I feel the greatest initiative I have taken in my life is to build a habit of making my own portfolio and consistently working towards it.

Make sure to build a habit of constantly investing and diversifying the funds.

Remember- booking small profits now; makes large returns later.

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