Rich gets Richer, it isn’t that way!

                                                    

We would have heard this saying, probably a thousand times that “Rich gets richer & poor becoming poorer”, but I wonder how many have tried to change this saying or thought!. India recorded 2^nd highest rise in HNI’s in the last couple of years, no need to envy all those, even you can be a millionaire with proper investing.

In Financial literacy none of us can literally get through pass mark. Right from school education we were advised to get good grades and get a secured job, but no part of education taught us how to earn money, after all the primary purpose of education is to get a sound analytical and thinking ability. But none of us are interested in understanding the simple concept of savings and investments through the knowledge we get through education.

Save part of your income and spend the left over, but are we following this concept which has been followed in our country. We are forced to buy whatever we want or we are lured into this act of impulse which we never regret. Credit cards has made life easy in many ways by getting things we want so easily at the touch on a phone or a click over the mouse, but it depletes our savings account as we need to pay for the things purchased from our savings account.

Easy money and easy attitude had made many of our investment decisions wrong. The only thing which we still follow is following the investment advice of our fathers and fore fathers i.e. investing in insurance which is completely wrong in modern economic situation or exhausting our taxable savings income.

Money compounding is a simple formula, we all knew the Einstein’s 3^rd law by heart, “For every action, there is an equal and opposite reaction”, this law applies to money compounding. For every penny you invest, it compounds and grows over a period of time.

In Einstein word’s, “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

Rain drops makes a mighty ocean, power of compounding is as simple as that, you can dream of becoming a crorepati, but if you aren’t thinking or planning to invest in equities, it will be a dream forever.

Start small and earn big. Discuss about the investment avenues available with your peers and those who know should impart the knowledge of making money to others.

Mutual fund is simple and easy tool to make money; it is highly regulated by AMFI and SEBI.