• Can I order Pizza thrice a month for all of us instead of four?
  • Can I set aside 1500 Rs from my pocket money, each month?
  • Can I ask my parents to raise my pocket money by 1000 Rs and I save 500 and invest 1500 in total?
  • Can I explore ideas wherein I can make some extra income by working part time?
  • Can I explore turning my hobby into a small business and make some money?
  • Can I work as an intern during my holidays in a startup which fascinates me and make some money?
  • Can I spend little lesser on things I don’t really need and save up Rs.1500 per month?

If the answer to any ONE of the above is “YES”, congratulations!! You are a “MILLIONAIRE” in the making…

Wonder how – here is a simple but very important math – If you save 1500 per month for the next 20 years, you will end up having more than 11 L in your account (considering an achievable 10 % return on investment).  Any guesses what will be the amount if you do the same for 30 years? … well hold your breath it will more than 33 L…

Remember this – many of the richest in the world started saving when they were very young…so what’s stopping us? lack of knowledge or is it lack of intent or thinking that it’s too early for me…? Saving from childhood can be a game changer in your life, so start right away.

Now that you know that its best to start NOW – where will you invest to get the best returns – this is equally important, as a small difference in the total returns can make a huge difference.  For instance, in the above example if you would have made 6 % on your investment for 30 years then instead of 33 L + you will end up with only around 15 L + …shocking right …but that’s true.

There are various investment instruments like banks, mutual funds, gold etc.  Here I would advise that Mutual fund SIPs (Systematic investment plans) would be ideal for long term investing.  Here you can set an instruction to the bank to automatically invest every month an amount of your choice (Rs.1500 in this example).  You can read more about mutual fund SIPs and start. 

Not saving for a long term can cost you MILLIONS – so do your homework now and get rewarded BIG in life…

Author: Mr Nirmal M Jain | Mr Nirmal M Jain is a Co-Founder at HappyWise Financial Services. He has helped over 100 Families over the last 15 years of his services in the Financial Planning Sector. He has been a mentor to several people to help them better understand investments, stocks, mutual funds, financial planning, personal finance and above all his favourite term “The Power Of Compounding!”.

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