Getting Rich By Investing (Savings would prevent poverty, It is Investing that lead to riches)
Taking the example of INFOSYS ( An Indian I.T. Company ), if one has invested in the company since its inception i.e in the year 1993, investment amount of just Rs 10,000 ( 100 shares) today it would worth rupees more than 1 Cr 55 lakh, the company has been giving continuous dividend every year since 1997, and the highest dividend declared was in 2004 which was of 2300%. Company has declared bonus 8 times which converts 100 shares (1994) into 17000 shares in (2020).
DON’T THINK HOW IT WOULD HAVE BEEN IF YOU HAVE STARTED 10 YEARS AGO. START TODAY AND VISUALIZE HOW YOU WOULD FEEL 10 YEARS FROM NOW.
In today’s scenario people are having money but they are lacking with time and knowledge about how to invest their ideal funds so they may give you proper returns by putting the money in the market circulation through investing.
For investment people need to be aware about their current earnings and the expenses which they incur. They need to make a budget which gives the idea of the amount which they save. Now this derives us to the formula (SAVING = INCOME – EXPENSES) which is incorrect. The formula should be reverse which brings us to EXPENSES = INCOME – SAVING.
While working according to this method of saving first and spending what is left after Saving , encourages investor to cut down unnecessary expenses and try to save more.
Investor should have clear idea about certain things which is FINANCIAL GOALS of a person ( which involve time and money required to achieve the Goal)
Depending upon the investment horizon, one must decide the the period for which amount is to be invested some may require the money in long term or some might require to fulfill in short tenure . Considering the requirement investor must decide that where to invest & earn returns. “AS BIG MONEY CAN BE MADE THROUGH HIGH SAVING & WISE INVESTING”
In case of investing the rule preferred is “Earlier The Better” as soon as an individual start investing he/she will have longer term to invest money & earn higher returns. This is called compounding effect which will be discussed later.
There are many options available for investment solving different purposes such as for long term investment Equity mutual funds, N.P.S, GOLD can be considered. For short term investment options can be Debt funds, company deposits, bank deposit. Tax saving options such as E.L.S.S & P.P.F can be availed
People fall into the debt trap & go bankrupt, the only reason for this that they fail to plan their money in such way that they are handful with money as and when the require. As it is said ” THE BIGGEST ASSET ONE CAN HAVE IS ZERO DEBT” . This is an important factor for which one must pre-plan to invest money, which matures at different time period.
There are various steps which need to be followed while planning for investing –
1. Defining Goal
2. Setting Goals
3. Managing Assets
4. Controlling Liabilities
5. Planning Taxes
This article leaves you to start thinking about investment planning as soon as possible, this can be done by self if you are prudent enough to understand your financial goals & analysis of market. If not then one must consult to their financial consultant as he/she will be the right person to advice as they have expert knowledge & practical exposure.