A common man has limited earnings and if you ask him how he plans to
save for his retirement or children’s education he would probably have
no answer. He may realize that Inflation
is hitting his savings hard and
the amount he would need for securing his child’s future is monstrous.
In fact, the corpus one needs to accumulate appears so big that most
people shy away from making a beginning to achieve this target.
I would say no amount or target is too big if systematic efforts are
made to achieve the same. You won’t even need to stretch yourself
tremendously in either earning or saving. It just requires you to follow
these two simple steps and you would find your small savings has
transformed into a corpus which you never dreamt of accumulating in your
life time.1. Start investing early even if the amount is too little
most important virtue of a successful investor is that he starts
investing from the very first day he starts earning. You need to be a
visionary to understand how little savings transform into large corpus
over time. There are two important benefits of starting early when it
comes to investing.
The first obvious benefit being that the
money you save earns compounded return over a longer duration and hence
the savings continue to multiply with time.
The other benefit
being that you have the opportunity to opt for investment vehicles which
promise significantly higher returns when held for a longer duration.
Take the case of equities, if you hold them over a long enough time
horizon, you can look forward to earn the most lucrative returns.
So, your money earns a higher return for a much longer duration and this works wonder for you.2. Invest consistently
benefit of investing early can only be reaped if it is done
consistently over time. The best way to ensure that you start investment
early, smartly and consistently is to opt for an investment plan
or life insurance policy. Life insurance Policy
combines the benefit of
insurance and investment. So, you not only stand to gain from the
investment but the future of your Dependants
is secured on account of
the insurance cover. Buying such an Investment Insurance Plan
only enforce you to invest systematically but also ensure that your
money is invested in the most rewarding investment vehicles and the
Apart from earning attractive
returns on your investment, you also stand to gain from the tax savings
that most life insurance plan confers.