Investment Plan

The purpose of our life could be summed up into one right word — Happiness. Finding and unlocking the secret to lasting happiness is a duty we all owe ourselves. One way to bring happiness into our lives is fulfilling our ‘Life Goals’.

We all have different goals – buying a house, giving the best education to the kids, see them building family, retirement and a lot more. Many of us also hope to achieve a level of wealth while providing for other goals. But the ultimate goal for anyone would be achieve the freedom from financial worries. This freedom is possible with smart goal-based investments.

Just as people have different goals, there are investments to help achieve these objectives. Smartly investing your hard-earned money ensures that the right amount of funds are available in the right time.

What is Investment – What does it comprise of?

When you invest, you commit your money or resource in the expectation of future benefits. For instance, when you want to accumulate some Rs. 20 lakh for higher-education of your child, you may need to save about Rs. 10,000 per month for next 10 years to achieve the goal.

This Rs. 10,000 that you forgo now towards a goal in the future is your investment in that goal. Also, investing implies that you have committed the money to a financial product with the hopes of getting significantly more money in the future.

Why Should You Invest?

Majority of us have a single source of income, but we have several needs that are immediate, medium term and long term. And if we start to fulfill one goal after other with our accumulated savings, we would be hardly left with anything for our long-term goals.

Savings = Income – Consumption

This equation shows savings as the remaining amount after the deduction of total expenditure from total income. Mathematically, the equation gives higher importance to consumption first. However in real life, experts recommend to invest/save for future first and then manage your spends with the remaining amount. Thus, if you plan to save more money to fulfill your goals, there are only two possible options – reduce spending and increase your income. Often the former is easier than the latter.

So, coming back to this question- “Why should you invest?” The answer is pretty simple – ‘You should invest to create wealth, so that your savings are safe’. And why do you need to build wealth?

  • To beat inflation, that keeps eating into the value of your savings, unless you invest smartly
  • To fund your different life goals like planning for retirement, children’s education, buying a car, going on an international holiday, and so on
  • To keep a financial buffer for unplanned expenses and emergenciesa
  • To deal with higher life-expectancy, which means people are living longer and therefore need more money to maintain their lifestyle.

Hence, it is critical not just to have money in the savings account, but rather utilize it to make investments that enable you to create wealth over a long period.

Contact me to know more :
IRDA Registered Financial Advisor :  C. J Ajesh
Max Agency Code : 146946
Mobile Number / Whatsapp  : +91 98193 05450