Skip to comments.Save And Invest What You Save Wisely, IRIS Business Services, India
Posted on 06/13/2009 6:57:07 AM PDT by Son House
Everyone dreams of becoming rich and considers ways of minting money, so much so that one may be able to live one`s entire life comfortably. Make a resolution that you will convert a big portion of your savings into investments.
The simplest way to get rich is to save a part of your hard earned money first and make investments from the savings. Savings are an indispensable element of every one`s life.
Here`s Robert Allen`s take on the subject:
There are two meanings for the word save:
(1) To pay less for your purchases, as in `Safeway saves you more! `
(2) To create a surplus, as in `I need to save money for retirement.`
One should start saving from the early stages of your earnings. Some people are good at this, while some are not. We should take steps for savings and imbibe the investment concept as the most crucial part of our life.
Savings should be part and parcel of your hard earned income. Some chunk of money must go for savings so that they may be utilized during emergencies.
Not just saving will help your money grow. It has to be invested wisely. So it is advisable not to keep your entire savings like that.
Generally there are three kinds of people: - A) those who are good at savings, B) those are good at investing and C) those that are good at both savings and investing.
Some people do mere savings and don`t go for investments as they are scared of losing their hard earned income due to risk element involved in investing. Such people think that while investing there is no guarantee of getting good returns so they keep themselves away from the investment option.
Let`s take an example of a housewife who believes in savings but not investing. She is of the opinion that the savings are an important part of life and for meeting the future contingencies. She considers the investment option, as risky and thus refrains from investing her savings, belonging to the `A` kind of people mentioned above.
However, she needs to understand that mere savings cannot help her money grow. Suppose she is having savings of about Rs 50,000 and does not invest it anywhere, in due course with inflation and rupee fluctuation the savings may lose its original worth. So it`s better invest part of your savings into various investment options like bank fixed deposits, local equities, mutual fund investments, etc.
Now let us take the case of the `C` lot of people good at both options; savings as well as investing. Such people know very well how to keep track of savings as well as investments.
Let us suppose a salaried individual with the monthly salary of say Rs 45,000, spends Rs 20,000 on domestic expenditures, Rs 5,000 he keeps as cash for meeting emergencies and from remaining Rs 20,000 he goes for an investment. He keeps Rs 20,000 in bank`s Fixed Deposit (FD) account for about ten years at the fixed interest rate of 10% p.a., after which his money will get doubled to Rs 40,000.
So, in order to become wealthy, one must not only save from one`s earnings, but also rightfully and wisely invest them into lucrative investment options available, by imbibing the mentality of the `C` lot of people, who are good at both savings and investing.
So while our free enterprise fails under Obama, India and the rest of the emerging markets will get all the good businesses and job opportunities.
America will be stuck with Green, high energy and gas prices because Democrats got their dreaming idealistic way, which isn't working now, nor will in the foreseeable future.
Thanks Democrats, you've ruining all the compounding interest in our market, effectively making investing in American business stagnant for now, and a loss for the future because nobody wants to do business with Democrats in charge.
I wonder if investing in green companies is a good idea for the individual investors. I think “green” is just the “in thing” and will go away in the next ten years or so. Remember everyone was stocking up on oil investments in the 1980 and it went bust eventually. In 2000, it was the semi-conductors and they went bust. Greenie may go bust eventually.
Care to share?