An apple a day keeps the doctor away!
A 1000/day can keep Financial Woes at Bay!
How to generate small savings
First things first-from where do I get 1000/day to invest? Try the following:
- Going for a Movie and then eating out could cost 5000 for a family of 4. If you are doing this weekly, making it monthly could save 15000/month
- Smoking 10 cigarettes less per day would save 100/day or 3000/month
- Do you really need that new Colour Plus Trousers and Arrow Shirt every quarter? Or the new Model of Cell Phone every 6 months? Bringing these down to once a year could save around 25000/year or 2000/month
- Ordering Pizza and Coke every Saturday could cost 1000/week – bringing it down to once a month saves 3000/month
- At times, walking distance upto 2 kms and avoiding driving down or using the metro/monorail/train instead of driving out every time could save 4-5000/month.
The above 5 measures could save you 25000/month or 1000/day! Additionally, each of the above habits will make you healthier as well-most ailments today are obesity, backache – arising out of bad eating habits and bad sitting posture!
Best Investment Plan
Now, you may ask, what is the use of saving money if you can’t keep your family happy?
- Assume a return of 15% – dividing this by 300 days would give you a return of 0.05% per day. If I invest 1000 per day for 1 year, I make 3.2 lakhs. In 5 years I generate 22.3 lakhs ,10 years fetches 69.6 lakhs and 20 years 3.81 Crores!
- Today you are going out for every Friday release movie-saving 1000 a day and generating 3.2 lakhs could fetch you a Home theatre system!
- You are taking your family out today in a Suzuki Swift or Hyundai Verna – 5 years later, using the additional corpus of 22.3 lakhs you could take your family out in an Audi or a BMW! Wouldn’t your family be happier?
- 10 years later, the corpus of 70 lakhs generated thus would give you 35 lakhs for each of your two children-sufficient for their Future education or you could upgrade to a 3BHK flat instead of the current 1 BHK!
- 20 years later, 1000/day would fetch you 3.81 Crores, enough for generating a pension of 2.5 lakhs/month. Even after adjusting for Inflation of 6% the present value of the pension would be 77950/month-not bad!
We all know doing exercises helps in reducing weight and feeling more energetic. Complimenting this with dieting enables us to increase the probability of weight reduction. Similarly, reducing your spent on daily basis is one way to increase your wealth. Managing the savings by investing wisely and prudently in order to get satisfactory returns will only compliment your wealth growth efforts.
Now what are the various avenues of investment ?
Investment can be made in Financial assets expecting fixed or variable income or Real assets.
Financial assets include equity securities, debt securities, mutual funds , postal savings, fixed deposits. Real assets include land property, house property, bullion, precious stones, art objects. Each of these investment avenues have inherent risks, benefits, expected returns level, pricing trends. Investor needs to have a detailed study on these parameters before choosing on the investment avenue to match it with its objectives.
So, just as an Apple a day keeps the doctor away, a 1000 a day keeps Financial Woes at Bay!
image credit: reveremagazine.com