My Investing journey starts from the age of 20 wher i First go to Know about The Stock markets and
Mutual Funds
Most dreams and goals come with a financial cost attached to it. Following your dreams can be
expensive if not planned well in advance
This particular line made me realise that i should early Investing so that i might do not end thinking
twice to get my favourite holiday plan or for buying some
of my favourite goodies!
After Exploring a lot and reading some good financial books which i'll mention in my next Blog i got to
know about some the really techniques and some saving hacks and a Magical formula
such that if i start early it goona help in a good run
POWER OF COMPOUNDING
The most important benefit of investing early is the power of compounding which is referred to as the
greatest mathematical discovery of the world by Albert Einstein
For better Understanding let us go through a simple Example
2 potential investors, Ramesh (age 25 years) and Suresh (35 years). Both of them have a common goal of
investing for retirement at the age of 60. Ramesh starts investing early and he invests a sum of Rs
10000 @7 percent (with a contribution of Rs 10,000 every year thereafter). As Ramesh turns 60, after 35
years of staying invested he earns a sum of Rs 14,89,135. At the same time, Suresh who began investing
at
a later stage in his life with the same investment amount of Rs 10,000 @7 percent (with a contribution
of
10000 every year) was able to accumulate only Rs 6,86,765 at the age of 60, after 25 years.
This difference of about Rs 8,02,370 just by starting early just blew my mind and motivate me to start
the things
off earlier it might not be of Rs 10,000 be a small amount by saving through the pocket money or
somewhere else
but starting off things earlier do create a lot of impact
The graph speaks all about the growth Ramesh got by just Starting 10 years Earlier than Suresh.
Smart way to create wealth
Age is not just another number when it comes to investing. Taking a decision to start investing at an
early stage of your life, say in your twenties gives you exceptional advantages in the form of time and
ability to tackle or overcome the investment risks that might persist at a later stage. An investor’s
age has a considerable impact on the amount of risk he or she can withstand. At a later stage in their
life, people shy away from investments, especially individuals reaching retirement age. It is better to
start investing early so that you have enough disposable income to cover your risks which otherwise
would be saved for retirement.
Summary
This was My Experience With Power of Compounding also i'll write more blogs on how was my
Experience with the Indian Stock Market, CryptoExchnages
