Saturday, 26 April 2014

Nothing Else Matters

No matter how much you are earning, you going to find it difficult. Because, Bcos! You are not putting that earned income at the right place.

Now, what this right place could be?

First, decide your need. What are your goals for future? And then, according to that decide the right place to park your money. There are lots of financial vehicles where you can invest your money, like Mutual Funds – Debt, Equity, Balanced, Bank Fixed Deposits, Direct equities, Bonds etc.

 One thing you need to care more than all these financial products is INFLATION. If you will fail to beat inflation then it doesn’t matter what you are earning, anyhow it is going to fail in long term. Let’s take a small and simple example; In India on average inflation rate is 8 to 10 per cent. Return from bank saving account is only 4 per cent, which simple mean your real rate of return is in negative 4 to 6 per cent.

You decide to put 1 Lac in bank FD at rate 9 per cent and in the same year Inflation index CPI was around 10 per cent. What progress you hard earned income made? Nothing. Negative. Really! After 1 year, original value of 1 Lac becomes around 99 K (inflation adjusted), Loss of 1000. Now after 30 years same 1 Lac would be around 74 L (inflation adjusted), Loss of 26,000.

My Friends, it is your hard earned income, not mine. This is a right time to start. You afraid of equity, Okay.  Chooses financial vehicles – at least which are able to beat inflation. If you will fail to do so, You would be intelligent Monkey. Don’t fool yourself, we are human. 

Nothing Else Matters – if you are able to beat inflation. Not even your small monthly incomes, which might counts in few thousands. Only things you need to do it is by choosing right investment vehicle.

So close no matter how far
Couldn't be much more from the Heart
Forever trusting who we are
And nothing else matters


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