MUTUAL FUNDS - INFO GRAPHICS

START SAVING EARLY

" MOST PEOPLE DON'T START SAVING IN MEANINGFUL AMOUNTS UNTIL A DECADE         OR TWO BEFORE RETIREMENT,WHICH SEVERELY LIMITS THE POWER OF    
       COMPOUNDING.THAT'S UNFORTUNATE ,AND THERE IS NO WAY TO FIX IT
          RETROACTIVELY .IT'S A GOOD REMINDER OF HOW IMPORTANT
    IS TO TEACH YOUNG PEOPLE TO START SAVING AS SOON AS POSSIBLE"

SAVE or SPEND

" So, I understand that an insignificant event of spending Rs 1,000 now can cost me a significant Rs 16,000 that I can make of that Rs 1,000 by earning 15% annual return on it over the next 20 years. A simple math but a startling fact, isn’t it?

If I can comfortably do with a car costing Rs 6 lac instead of giving in to the temptation of buying a car worth Rs 12 lac (just because my neighbour has it!), and I compound this Rs 6 lac of saving at 15% for the next 20 years, I would end up with almost Rs 1 crore of extra savings.

So, the decision to buy the lower-priced car means I would end up with 16 times more money than I saved. A massive impact of a relatively much smaller cause!

Consider another example. Opting for a mobile handset worth Rs 15,000 instead of one priced at Rs 50,000, you save Rs 35,000. This, when invested at 15% annually compounded return for 20 years would amount to about Rs 5.7 lac!

A few seemingly small saving decisions can produce huge difference in your level of wealth over the long-term.

Now, imagine making hundreds of decisions – big and small – to save and compound instead of to spend and consume over the course of your life. Choosing to save Rs 500 here, Rs 5,000 there, and Rs 50,000 there can have a huge impact on your future life."      Safal Niveshak

3 Steps to Change Bad Money Habits