Skip to main content

How is investing really beneficial?

First, we need to know the difference between savings and investment, then its benefits will be known in the future. Inhale as soon as the air comes in.
gold saving
In article's

First let's have a brief look at savings, investment


storage; Money set aside for your needs. It will remain the same. It does not grow. For example, money stored in a safe deposit box at home alone.

investment; When you need it, the money saved is kept somewhere else instead of just being kept. Because money doesn't stay the same in that other place. is growing There are various examples of that other place; Bank Savings Account (This also has an interest rate. Money grows.), Bank Fixed Deposit, Employee Provident Fund, Public Provident Fund, Post Office Savings Schemes (Post office Saving schemes, National Savings Scheme, Kisan Vikas Patra etc., Ancient Painting, Ancient Artifact, Chartered Land, Built House, Mutual Fund Schemes, Stock Market Shares)

Let us see the difference between the two with an example.

Not investing, just saving;

A mother in the year 1979, Rs. Suppose he deposits 10,000 in a safe deposit box. Now, it is worth Rs. 10,000 only.

Investment in gold;

If he had invested the same money in gold, if it had been invested in gold in 1979, the price of 10 grams of gold would have been (Rs. 937). For 10000 rupees, you can buy almost 10.67 grams of gold. Today's gold price (Jan 19, 2023), 10 grams of gold costs Rs 55,500. That is, it has increased by 45.00 times. So, 10000 x 45,00 = Rs. 4,50,000/- would have increased.

Investing in stock market index based mutual funds;

If the same money had been invested in an index based mutual fund, it would have multiplied by 364.81 times (today's stock index; 63,384). So, 10000 x 63,384 = Rs. 633,840000/- would have increased.

Every investment has its drawbacks;

Every investment has pros and cons. In every investment three elements of risk, liquidity and rate of growth vary from investment to investment. For someone new to investing, read my advice in the following post.

Impact of Inflation;

Thus, money has no chance of multiplying if it is not invested in any way. In an inflationary society, if no investment is made, the same standard of living cannot be maintained. Today, we cannot live the standard of living we had in 1979 on Rs 10,000. A house can be bought for Rs 10,000 that day. Today, we can pay only one month's rent.

 warning; There is also the risk of losing money in investments. Be very careful.

 As Warren Buffett said,

 The first rule; Never lose money

 The second rule; Never forget the first rule.

Therefore, investment is very necessary. Let's start early and harness the power of compound interest to grow money and make retirement a comfortable one.
Tags:

Comments

Post a Comment

Like this 22k jewelers blog?

Popular posts from this blog

What is the new rule of bank locker agreement

The bank locker facility helps in keeping gold jewelry, money, important documents, etc. safe. Those who use the locker service must sign a renewed agreement.    Bank locker How to avoid the risk of bank locker service being suspended? Those who have not yet signed the renewed agreement should do so immediately, banks are reminding them. If the renewed agreement is not signed, there is a risk of the locker service being suspended. Let's see the important aspects related to locker agreement renewal.   Locker Agreement: The Reserve Bank of India ordered in 2021 that a new rental agreement should be obtained from the beneficiaries using locker services. The Reserve Bank took this step considering customer complaints, technical aspects, and Supreme Court guidelines. Extension of deadline: The objective of the locker renewal agreement is to improve transparency and security regarding the operation of the locker service. The deadline for this was extended twic...
Post a Comment
Read more

No tax on gold, gold prices plummet

New Delhi, Aug. 13-Gold prices fell by nearly two percent in the international market yesterday after US President Trump announced that there would be no tax on gold. Gold price gold price fall reasons The US Customs Department issued a statement last week that the tax would also apply to gold bars . Following this, prices rose sharply. The price of one ounce of gold, i.e. about 28.35 grams, reached a new high of Rs 3 lakh. White House sources said at the time that the tax would be applicable and that an official clarification would be made soon. Following this, Trump announced on his Truth Social social networking site the day before yesterday that 'there will be no tax on gold '. This announcement allayed investors' fears regarding price hike, leading to high selling of gold. Following this, the price of one ounce of gold fell below Rs 2.90 lakh. The international market situation was also reflected in India. In the last 2 days in Chennai, the price of 22-ka...
Post a Comment
Read more

This gold price is not permanent.

This gold price is not permanent, but when people think of a problem in the country, they buy gold first. It is good to buy as much as needed, but buying too much is foolish. When there is a famine, the things they buy are food, clothing, and money. If we don't have money, it is difficult to sell gold for urgent needs. Gold price Gold market crash history   Will there ever be a situation where gold , which has been rising very, very rapidly in a short period of time, will become a commodity? Studies on gold say that it may come. If we look at the price of gold over the past 50 years, rather than just 10 or 20 years, it seems that what you are saying has happened. That is, in September 1980, the price of 1 ounce of gold touched $666. 19 years later, in September 1999, the same 1 ounce of gold was sold for $255. A 62 percent decline. An ounce did not touch $666 again until 2007. That is, 27 years later. Next, in 2012, 1 ounce of gold touched $1,772. But, in just three ye...
Post a Comment
Read more