There is a famous saying by Benjamin Franklin “If you would know the value of money, go and try to borrow some." There is no better saying than this, to make you understand the value of money. Yes…money is very important, but what if some things which make you rich, never had anything to do with money. Is it possible that some things which have nothing to do with money, can make you rich? Time to find out…..
You must have heard the saying “If you fail to plan, then you plan to fail”. This saying holds true in everything, including money. Newly married…you and your spouse have to jointly plan your finances. Just got a job, you have to plan your finances. The birth of your first child…You definitely have to plan your finances.
So what planning do you do? Which financial products to invest? How much to invest? When to invest? Planning to save on tax? Planning for your expenses? Well planning is everything, if you want to make money. You just cannot make money without planning. When you leave from home to office, you plan on how to reach office in the shortest possible time. You make allowances for a traffic jam, or a delay in the bus. In the same way when you plan for your finances (money), you must anticipate problems which could stop you from reaching your goal.
“Take care of your body. It’s the only place you have to live.” There is no better saying than this, to tell you just why you need to be healthy. If you do not have time for exercise, then you have to make time for disease. If you are forever ill, all your money goes to the doctor. You have nothing left to live on. This is the path to poverty.
No matter how much time you spend trying to earn money, make sure you have time to exercise and maintain your health. This is one investment which will definitely pay good dividends.
You want rewards…you got to take risk. There can be no rewards without risk. “Watch the turtle. He only moves forward by sticking his neck out”. There is no better saying to explain risk and reward. You want great returns from an investment in stocks. You must buy reputed stocks in fairly large quantities. You take risks by investing in equity mutual funds and stocks for great rewards. When you invest in equity, you even have a disclaimer “Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing”.
What happens if you play safe? You could invest in a fixed deposit which pays you interest regularly. Your money (principal you invest) is safe. You also get interest on the money, you invest in the fixed deposit. But can returns from your fixed deposit beat inflation? Inflation, the rise in prices of goods and services with time, eats up all your returns. What money have you left?
You need to remember that only thinking about money, does not make you reach. Sometimes things besides money, make you rich.
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