Understand The Power Of Compounding…Begin Today!

Since pre-historic times till today, the person who brings up the child is considered greater than the person who gives birth. In the same way earning money is something that any and every one can do- from a peasant, office boy to an officer or a businessman, but one who can give direction to the money earned and derive a meaningful output always has an edge on the rest of the world.

One has to be disciplined as there is no short cut to success and stock market is not a gambling tool. The basic fact all new entrants have to understand a disciplined approach can make wonders in your financial status, generally financial management is considered as a very tactical work and generally people are ignorant towards it.

But I feel it just requires a disciplined approach along with the basic mantra save, invest first and spend the left over, prioritise your priorities and see how your money work wonders for you

A small example to illustrate is given below:

Age: 23 years

Sip amount: 7000/

Tenure: 20 years ie he attains 43 years

Return:15%

Total corpus: 10754839

Age: 23 years

Sip: 10000/

Tenure: 20 years

Return: 15 %

Total corpus earned now: 15364056/-

Age: 23 years

Sip amount: 15000/-

Tenure: 20 years

Return: 15 %

Total corpus earned now: 23046084

He still has 17 years to go for retirement and investment to compound further. Have you planned for it in this corpus he can easily cater to education of child and buying a house for him. Lifestyle is directly proportional to savings you make (plan B).

— Akshay Bhargava/Lucknow

(The author of ths article is Akshay Bhargava Amfi certified Advisor. Views expressed are based on his professional experience and expertise)