As the time passes by and we grow older and become independent, with branches.
Therefore now is the time you need to now ask yourself some questions.
- Are you ready to take on these responsibilities?
- Are you well prepared or armed enough to successfully take care of those responsibilities? In this phase of life we somehow conveniently ignore the importance of savings.
Most of us think that it is too early to start thinking of investing, “abhi tho kamana shuru hua hai, investments ke bare me sochne ke liye puri zindagi padi hai” does this sounds familiar?
So if you haven’t, then my friend you are already late. Through this article I intend to not just help you understand the importance of investing but also show you that it does not take much effort to plan it prudently.
Remember the rule 1. Of investing – One should start investing the day you get your first pay cheque.
More often I come across the question from Younger group of clients,” but why” ?
Here are some pointers :-
- Emergency cushion – This could be any number of things: a new roof for the house, out-of-pocket medical expenses, or a job layoff and sudden loss of income. You’ll need money set aside for these emergencies to avoid going into debt to pay for what you need.
- Retirement – If you intend to retire someday, you’ll probably need savings and/or investments to take the place of the income you’ll no longer get from your job.
- Average Life Expectancy – With more advances in medicine and public health, people are now living longer (and needing more money to get by).
- Volatility of Social Security – Social Security was never intended to be the primary source of income and should be treated as a supplement to income.
- Education – The costs for private and public education are rising every year, and it’s getting tougher to meet these demands.
Cost of MBA from good Universities or Engineering from Reputed Institute is not less than
Rs. 4- 5 lakhs today.
Thus, without savings smartly and investing, you may open yourself up to other risks as well.