Jab Jaago Tab Savera

 

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
25 5000 5400 35 5000 5400
26 5000 11232 36 5000 11232
27 5000 17531 37 5000 17531
28 5000 24333 38 5000 24333
29 5000 31680 39 5000 31680
30 5000 39614 40 5000 39614
31 5000 48183 41 5000 48183
32 5000 57438 42 5000 57438
33 5000 67433 43 5000 67433
34 5000 78227 44 5000 78227
35 5000 89886 45 5000 89886
36 0 97076 46 5000 102476
37 0 104843 47 5000 116075
38 0 113230 48 5000 130761
39 0 122288 49 5000 146621
40 0 132071 50 5000 163751
41 0 142637 51 5000 182251
42 0 154048 52 5000 202231
43 0 166372 53 5000 223810
44 0 179682 54 5000 247115
45 0 194056 55 5000 272284
46 0 209581 56 5000 299466
47 0 226347 57 5000 328824
48 0 244455 58 5000 360530
49 0 264012 59 5000 394772
50 0 285132 60 5000 431754
51 0 307943
52 0 332578
53 0 359185
54 0 387920
55 0 418953
56 0 452469
57 0 488667
58 0 527760
59 0 569981
60 0 615580
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.

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7 thoughts on “Jab Jaago Tab Savera

  1. I’m 25 right now. I’d love to follow your advice, but I currently make no money. 😛 My current investment is the degree I’m going to be pursuing starting next month. I’m hoping it pays off at least as handsomely as your 55k. 🙂

    Liked by 1 person

    • I have already started investing in HDFC TOP200, ICICI focused bluechip equity- direct growth and Franklin India high growth companies fund i also have recurring deposit and one PPF account. I was planning to start one more SIP but i couldn’t because seva mandir started deduction TDS from my stiphend 😦

      Like

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