A good start is to put every rupee earned into two separate bank accounts – one for regular expenses and the other for investments.
Mr Sharma was waiting at the cafeteria eagerly for his mutual fund agent. He had promised his children a movie in the evening and was getting late. In a few minutes the agent walked in and soon they were discussing the various investment options. Sharma said, “I want to plan for my children’s higher education. How much should I invest for that?”
The agent, with an important look on his face, opened an Excel template, put in some values and said, “You have to start an SIP of ₹25,000 per month. Then in 10 years, assuming 12 per cent per annum return, it will become ₹56 lakh.” Sharma said after a deep thought, “A commitment of ₹25,000 looks difficult, let’s start with ₹15,000.”
Does this kind of conversation sound familiar? The agent knew that he had to draw a big enough line upfront, so that even if the customer settles for a lesser amount, gives him a sizeable business! He is happy, Sharma is also happy. He can now take his children to the movie with the feel-good factor of having started a ‘forcible saving’ for the children’s future. He knows for sure that investment works only this way. One has to force oneself into it, while ensuring that one is not over committed.
Denne historien er fra June 2018-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra June 2018-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Here's How To Claim Tax Refund If You Missed The ITR Deadline
The Income-tax Act, 1961, allows the refund of any excess income tax deducted on your income beyond your actual tax liability.
26 Spiels You Should Not Fall For
We have a list of 26 traps that you should avoid in your journey to creating wealth
Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024, guaranteeing 50 per cent of the salary as assured pension for central government employees.
Unlocking Financial Freedom with Freedom SIP: A Beginner's Guide
Freedom SIP is the smartest way to finance your retirement because it allows you to ride the compounding rocket to build wealth, even by investing a small monthly sum.
Asset Allocation Strategy to Safeguard Against Market Fluctuations
Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.
The Role of Asset Allocation in Investing
A proper mix of asset allocation that aligns with investor's goals is key to the portfolio's long-term performance and reaching milestones.
Why Retirement Planning is Crucial in Life
Retirement planning is the key if you want a financially secure life in your sunset years.
IS SENIOR HOUSING FOR YOU?
Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost
WITH OR WITHOUT INDEXATION: WHEN DO HOMEOWNERS PAY LESS?
Calculating taxes under both methods-considering inflation and property appreciation-can yield a more precise result
Flexing Its Way Across Market Cycles
Very few funds meet investors' expectations of delivering superior returns across market cycles, and HDFC Flexi Cap Fund is one of them.