Investment – Sooner the better with caution
Namrata & Jessica Munoth, INN/Chennai, @Infodeaofficial
As we step out of the world of textbooks and blackboards and set foot into the real world, our minds are often consumed in realising our dreams, tackling our fears, anxieties, and finding our place and purpose in this large blue void. What we many times ignore and forget is that while it is essential to earn money to get more productive, it is equally important to plan how and where to use our earnings.
A rupee saved is a rupee earned. The earlier you start investing your earnings in the right places, the more productive you can get. Many believe that saving and investing is a task reserved for those in the 40s, but that’s not true. When we are young, we possess the ability to take more significant risks; and as we all know, higher the risk higher the return.
If you start investing in your 20s, you have about 40 years until you retire. Earning a return on your investment for 40 years will make you more money when compared to a shorter investment period of say 20 years if you start in your 40s. Such a long holding period also gives you an excellent chance to recover your money in case you happen to make some losses along the way.
Just for an example, if you invest Rs. 1,00,000 today at the rate of 15% per year and keep it untouched for 40 years, you could have over Rs. 2.6 crores with you at the end. This is just a small and elementary example. The world of finance offers varied investment opportunities, and investors can earn a return even greater than 15%.
If you think you are not good with numbers and the world of finance seems daunting to you, you can always get in touch with a professional. A good portfolio manager can help manage your money based on your individual financial goals and risk-taking ability.
Bank deposits that can at the maximum earn you an interest of 7 – 8 % are considered a safer option by many; but if you wish to fly to another world, you have to overcome the fear of losing sight of the land.