How to make your money to work for you ?
Do you believe in Hard work ?
Whenever we see Sachin, Dhoni or Kohli appearing on in any advertisements some of us may hate them as they are getting crores for endorsing that advertisement. Did we realise that they have worked hard. Still working hard to get those endorsements. All of them always had respected cricket. They have maintained their body and their ability to play throughout the matches easily. They were booked for those ads based on their ability to score in each of the series and being popular amongst the playing eleven.
Each one of them has worked on their fitness levels from their childhood, under 19 and till now, which nobody can question. Money what they are getting paid is for all these hard works they do at the back end during their training sessions. Dhoni had practised helicopter shot to perfect by hitting by hitting balls perfectly for hours together.
Make your money to work hard;
Lesson from these giants are that just like hard work they put in for years yielding result like playing matches perfectly, getting endorsements etc. You need to allocate time for your investments also so that it can get compounded during bull run. Almost everyone will agree that any real estate investment needs time and we wont sell unless and until we need money urgently. Real estate investments either commercial or retail will boom during economic activity. There will be a period where price will stay almost flat, if you consider a period of more than 10 years the investment return will be around 10-12% only.
Gold also needs time to make a handsome returns of 10-11% at times and it remains flat for even a decade.
We had seen the Gold to reach new heights during last decade. The price was around 3200 per gram for 24 carat during 2011. Even after 5 years in 2016 also, the price of gold is oscillating in the same price. Gold is mainly for hedging against inflation and when inflation softens price of gold standstill. We keep these 2 investments for long time and at least understand that we need to possess for a longer period due to the cost of investment involved in buying real estate and gold. Why not stay invested in equities also?
Barring few, many of them had sold equity in making profit in short time or lost their money by selling during wrong time. You need to understand that equity market remains volatile. You can accumulate during these times and it reaches new heights every 5-7 year period. We may not know the power of those rallies in bull market. If we are convinced about our economy we can buy any known shares at first and remain invested for a longer time. Continuous SIP in share investment can yield you tax free dividends and also growth which you would have not imagined.
L&T and Infosys are known names in Indian economy. They can take the sensex forward or drop the index by great margin based on their stock price. Such is the power of these companies and their market capitalisation.
If some had invested just 10000 during the launch of IPO in Infosys and stayed invested for these many years they would have earned tax free dividends in lakhs. Along with splits and shares their worth would be more than hundreds of crores.
If you still have any apprehensions, think about mutual fund investments. You need to allocate some amount which will be automatically deducted from your bank account. You can keep investing based on goals. Allocate your investment needs into many goals so that you don’t need to break that investment for any urgent needs. Maintain emergency fund for very short term needs. Apart from this save some amount for buying new things or any other entertainment needs.
Make your hard earned money to work hard for you and compound in long term. One simple step is to have rich and wealthy mindset.