How to Earn from what you Earned?
Don’t known? Here are the answers.
Today, in the age of liberalization, globalization, and IT, there are a lot of ways where you can invest your earned money to make it double or more, following are the ways:
- Buy a Property
- Buy gold
- Hold your money in Fixed deposit
- Hold your money in recurring deposit
- Buy a Mutual Fund
- Invest in shares
And lot more, confused which one to proceed on. Ok let it make it simple by calculating initial investment, profit duration, and its worth.
|Items||Initial Investment||Profit||Duration of earning profit||Worth|
|Buying a Property||Very Large||Large||10 years or more||Inflation dependent|
|Buying Gold||Large||Small||Yearly/monthly||Worthy if you have enough money|
|FD||Small/Large/very Large||Fixed, 6.75%||Yearly||Not Worthy|
|RD||Small/Large/very Large||Fixed, 8%||Yearly||Not worthy|
|MF||Small/Large/very Large||Compounded||Yearly||Worthy, if you do it for 15 years, and inflation is very less|
|Shares||Small/Large/very Large||Market Dependent||Day/Week/Year||Worthy|
Few terms: Inflation, Compounded means?
Inflation: is the depreciation in money worth after a years or decades, in simple suppose you want to buy a mobile for 6000 today and after 1 year the same mobile costs 10000, so what changed? Mobile doesn’t, only its price, it means the value of money is decreased.
Compounded: is nothing but earning profit from your profit, like you are earning from your salary.
Given you a rough idea, still confused, where you should invest?
Ok, if you have a lot of money, say crore’s, you can invest it in property, gold’s, or FD, you don’t need to care about it, you can earn a good amount of profit.
If you have money in Lac’s, you can invest it in mutual funds/FD it will give you satisfactory amount of Profit.
Now say, if you are a salaried person with a month salary ranged 25000 to 90000 or can be more, what you should do is:
- Keep 20/30% amount of salary in liquid form, after 5-6 months you can do a FD for that;
- Off course you have a lot of things to buy for daily needs, so you buy all that;
- Now, at last after, spending money for daily needs, 20/30% savings for FD or sip, you might have saved some 2000/3000 Rs. Which is like okay. You can spend it anywhere and you do not feel sorry for that
Now, what you can do is, invest that money in shares (Equity), where you can earn more than double of the amount invested.
For example: you have invested 3000 for a share, u might get profit of more than 3000, that’s the profit of Shares which you can earn in a day or week with the money which is not so worthy for making your life comfortable.
Now how to invest in shares, where to invest when to invest, how much to invest, how to get rid of loss, shares, equities, derivatives, currency all that term will be talked in next session.
By: Nikhil Upadhyay (Manager – Utilities and Boiler Operation DFPCL)
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