Here’s are few take aways to get rich
in Pakistan while earning a salary:
1. Shift Your
Mindset: Pay Yourself First
One of the most important strategies
for wealth building is the concept of paying yourself first. Before you pay
bills or make any purchases, set aside a portion of your salary for savings and
investments. In Pakistan, many salaried employees often prioritize their
immediate expenses and overlook savings, which can hinder long-term financial
growth.
Set up a system where at least 20-30%
of your salary is automatically saved if you are supporting your family and you
have responsibilities.
If you are not responsible for any
dependents and living with family like a freebee where you don’t have to pay
the bill of any kind :D. You have to watch our your personal spendings very
critically as you can save up to 70% of your salary! For instance, you are
earning 100k a month you can save 70k, you can easily survive on 30k.
Guess how much you will make by the
end of year if you are saving the amount in a savings account, around 900k!
There are other options for managing
your savings.
Pakistan stock exchange market is one
of the less explored and emerging markets in the world.
Guess what, you can start stock
investment with just Rs 5k. It’s up to you if you, either you want to wear a 5k
dress or invest that 5k note in stocks to multiply in a short span of time.
Your spending habits will not only
impact your financial position, it also depicts the financial conditions of
your country!
1.
Minimize Debt: Avoid Consumer Loans
The second most important thing to
keep in mind to be smart with money is AVOID LOANS to meet your personal
financial needs! If you are already submerged in personal debts, the first step
in getting rich with a salary is to get rid of those as soon as possible.
Budget your salary, tighten your spendings for a few months and get rid of debts
and save the additional interests you have been paying for years. If you are
struggling with debts, you can see this example and adjust the steps with your
circumstances.
2. Live Below Your
Means
We live in consumerist culture,
influenced by social pressures and lifestyle inflation, can make it difficult
to save. From extravagant weddings to expensive clothing and gadgets, it’s easy
to get caught up in unnecessary spending.
I was searching for my wedding dress
back in 2021. I wanted something in pastel color, not too heavy and reasonable
in price as per my understating to be spent on a wedding dress. I visited all
the famous markets of Karachi. One day I was roaming on Tariq Road. I visited a
store named Makkah, initially they
welcomed us, and asked what we wanted I described them what I wanted, so they
showed me a dress, when the person showing us dress asked about my budget I
told him I don’t want to spend a lot of money on my wedding dress, I told him I
will spend no more than 35,000/- . I was stunned listing to his reply, He told
me madam, app Ja ke Gulahmed mai dekh laain. I saw nothing but so much
greed in their eyes, he could have nicely replied to me he doesn’t have any
dress on this budget. It’s not that I could afford it, I never felt right to
pay in 6 digits for a dress to be worn for a few hours. I realize how much
pressure parents would have on who pays for their children’s weddings. We are
living in a country where people spend their whole life earnings on weddings
despite being one of the low-income countries I am sharing my story to tell
girls and families not to spend hefty amounts when you can get a dress for 25k
from a local karigar! A friend of mine designed it, I bought the fabric, for
around 3k I guess. My friend knew someone who is a karigar and he agreed to
make my dress. My dress was finalized for PKR 25,000 with the same quality and
work top brands charge in 6 digits!
To get financially strong, it’s
essential to resist the temptation of upgrading your lifestyle and do
everything you see in your circle and social media with every salary increase.
Instead:
- Budget carefully: Use apps or simple spreadsheets
to track income and expenses. This will help you identify areas where you
can cut back. When you put things in writing it gets clearer and easier to
track.
3. Utilize Employer
Benefits
Many companies in Pakistan offer
additional benefits such as Provident Funds, Gratuity, and Pension
Schemes. These can act as a financial safety net and, over time, contribute
significantly to your long-term savings. Maximize these opportunities by
understanding the full scope of your employment benefits and using them to your
advantage.
Some companies allow you to withdraw your
PF certain amount, you can withdraw the amount and invest it in real state if
you have a good amount of provident fund saved with your employer.
4. Invest Wisely:
Explore Local Opportunities
In Pakistan, the investment landscape
offers several options for salaried individuals looking to grow their wealth.
Simply saving isn’t enough—you need your money to work for you.
Consider these investment avenues:
- Stock Market: As mentioned earlier, you can
invest in stocks by registering with any brokerage house such as K trade,
CDC, and many other brokerage houses. The Pakistan Stock Exchange (PSX)
has historically provided strong returns. Research stable companies and
blue-chip stocks.
- Invest in Mutual funds: Investing in PSX through mutual funds
like those offered by UBL Funds, Meezan Funds, or Al
Meezan Mutual Fund can help diversify your investments with relatively
lower risks.
- Real Estate: While property prices are high,
investing in smaller properties or plots in developing areas can yield
significant returns.
- Commodities: you can invest in commodities
through PMEX with the same brokerage houses that offer stock
investment facilities.
- Government Bonds: Consider National Saving
Schemes (NSS) or Behbood Savings Certificates that offer higher
interest rates than standard savings accounts. These are ideal for
salaried individuals seeking low-risk investment options.
5. Stay Disciplined:
Consistency is Key
Wealth building doesn’t happen
overnight, especially on a salary. The key to success is consistency.
Regular savings, disciplined investments, and maintaining a balanced lifestyle
are what will set you apart in the long run.
By sticking to a disciplined plan and
resisting the urge to spend unnecessarily, you can steadily build wealth even
in an unpredictable economy like Pakistan’s. The more consistent you are, the
sooner you’ll reach your financial goals.
If followed with discipline and
commitment, these steps can have your way to financial freedom while working a
salaried job in Pakistan.
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