Every person needs to focus on increasing his fund proportion by multiplying it. For increasing wealth, investment is essential to triple the savings. But there are multi needs for every person as it is categorized into various needs at various time periods. And there is indeed only a single form of income for every person to manage that. The sustainability in the long-term run will also be a question mark if all the savings are swindled for a particular purpose.
For every possible success, there should be a premature growth from the root itself. For achieving a goal, every hour must be valued. There is a proverb that if a person is dying of thirst, digging a well at that time is not a good option for him. As far as for the investment plans, the investor should be an early bird to catch his returns at perfect timings, otherwise, he would keep on saving for the rest of his life. It might be difficult for the younger generation when completing the 2nd decade of their life, to know about the importance of saving and investment and being reluctant like a stubborn kid who doesn’t like to go to school. The new earning members must be ready to save some funds for their retirement, like students starting to prepare for getting into an institution.
Being single and independent is the best advantage in the early form of investment. As the investors are young people, they don’t have to rely upon any other sources. This will be the golden time for developing this kind of habit. Even though the investor being a young person, there will be an instinct for them to go for material products, which doesn’t matter as the investment can also be started in smaller amounts. During the time of progression, the interest from the principal will be compounded which will increase the income value of the investment.
For instance, a person who invests Rs. 1000 every month at the rate of 12% interest per annum for 30 years, will have an outstanding of 30.80 lakhs at the end. Similarly, if another person invests for 10 years with an amount of Rs. 12000 he will receive only Rs. 26.9 lakhs. Though the investment of the second investor is high with returns, it won’t include the time factor and financial stress by projecting it as a late investment. The bottom-line for the understanding is, there must be a proper timeline and discipline in maintaining a financial target to get it achieved.
Due to the job variations, the investment timeline will also change, even though the single source of income remains to be the same. So that bank deposits will be a suitable idea for initiating a financial plan. That is why youngsters need to know the importance of proper investment. Investors need to know some of the poorer judgments made by the beginners to be careful and to go on the right path.
The long wait for a perfect plan: The investors must start their investment at the early period itself. It will be the joker’s idea to wait for the proper portfolio, as the markets fluctuate in nature.
Finding Cheatsheets: There are no easy options to get rich. The investors should not look for any type of investment tips where the backdoors will be full of losses. As always, slow and steady investment always prevails in the market.
Wholesale Purchase of stocks: The investors should not invest in more stocks for a short period as it is always expensive in terms of taxation and transaction costs and also hazardous in nature because you will end up in the streets.
Short term Investment: The investment must be of the nature that it should be focused on the long term run if the investors are depositing large amounts of money. The possible way of sustaining in the market is to maintain the equity investment for five years or longer and debt investments.
Too much fear: There will be a fear within the investors that always makes them make wrong decisions. They must know that by using smaller amounts also they can create a large corpus fund for their future.