Most of us start our financial journey by opening a savings account in nationalized bank after being forced by either parents or the organization (where we are employed) and we start accumulating our surplus in the same savings account. The saddest part of accumulating our surplus in the savings account is that we get only 4% per annum interest even though so many platforms are available where we can get good returns. But, we collect our surplus in the savings account because we always bother about our short term requirement (like buying new gadgets, dating) and we forget to start investments in this contemplation.
I believe we should start saving when we start earning instead of going on expensive dinner with girlfriend :P. If we start investing in early 20’s we can get a somewhat substantial amount at the time of our retirement and if we have short term requirements, liquid funds are available which you can withdraw in cash within 24 hours without exit load and with good returns.
Here I am comparing my investment plan with that of my ex-boss who started investing 10 years after I did.
|Annual Return 8%|
|Age||Amount Invested||Year end value||Age||Amount Invested||Year end value|
|Total Investment||55000||Total Investment||130000|
|Final Retirement value||615580||Final Retirement value||431754|
If I start investing at the age of 25 and stop at 35, at the age of 60 I’ll get Rs. 615580 by total investment of Rs. 55000, whereas if my ex-boss starts investing at the age of 35 and stops at 60, he will get Rs. 431754 by total investment of Rs.130000, which is more than double of my investment. Through this blog I am trying to explain the importance of investing as early as possible. I have already started investing in mutual funds, recurring deposit and public provident fund (PPF) and few of my friends in Seva Mandir have started investing in mutual funds & recurring deposit and few are going to start after seeing this comparison.
If you are above 25, don’t be bothered (JAB JAAGO, TAB SAVERA) just wake up and start investing.