Safe Investments for Seniors

Safe Investments for Seniors

If you want to sale any Financial product in India than add a pre-fix “Safe” on the name of that financial product and people will buy it. The word “Safe” is a Magic Word. You can sell any Investment product to literally anyone in India by applying a pre-fix “Safe”.

This shows the lack of Financial Literacy countrywide. Senior citizens are also targeted. The market is full of financial products like “Safe Investments for Senior Citizens”. Now, the question is that, how Safe the “Safe Investments” for Senior Citizens are?

Well, almost every financial product ultimately divert your money towards the equity or at least part of the money towards equity and part of it in a debt. Well, see. Growth is not at all possible without Equity.

Now, what my argument is that, if you are a senior citizen and want to invest your money than why not invest that money in starting your own Business? I know that you will now tell me that but it’s risky and I am looking for Safe Investments.

Well, owning your own Business is the Safest Investment in the world. This is because you have a management control over that business. Say for Example take the example of this Blog. This blog is my Internet Business and it’s my safest investment than the mutual fund investments or fixed deposits in my bank. This is because I have a full control on the management of this Business.

I can hire and fire “N” number of writers and Internet Marketers for this Business. And not only this but this business runs even without my presence if I hire a team of writers for it. So I think that my own Business is the safest Investment for me in this world.

And so is for you. Remember, your own Business is the safest Investment for you in this world because you have a full control over that business. So according to me the Safe Investment for Seniors is – Your Own Business.

How To Earn Crores?

How To Earn Crores?

This is one of the commonest question that people ask me. Well, it is possible to earn crores of rupees in your life. Here are the possible ways to earn crores. I have divided these ways into 4 broad categories.

01) Job – Get some high paying job at the management level of some large Corporation or at some multinational company

02) Self-Employment – Another thing you can do is you choose some high paying profession such as Doctors, lawyers, Film stars, IT Professionals…etc…

03) Become an Entrepreneur – You own a Business and earn crores

04) Investor – You Invest your money and make your money work for you rather than you work hard for the money.

Thus, you can earn crores of rupees from any one or all of the above ways. It is possible to earn crores from any of the above ways. However, I personally like the third and fourth way to earn crores. This is because these are the types of Passive Income.

It is possible to earn crores by doing a job or self employment but the only problem is that these are the types of active income means you will have to work hard for whole of your life and if you stop working, you will loss that entire income stream.

But in case of a Business or Investments this is not the case. You will have to work hard at once only to develop a successful business. Now, this is the one time hard work. Once you do this hard work, your job is over. That money will keep flowing into your bank accounts. And this is why I advise you to develop the passive income streams in your life.

Take the Example of this Blog. This Blog is my Internet Business and it is my passive source of Income. So I have to work hard at once only to develop it. Suppose if today I stop working behind this blog, this will only stop growing. But it will still make money for me for the rest of my life.

So Focus on building a passive income stream from your early life and you will become financially free.

Premature Encashment Rule 16

Premature Encashment Rule 16

Are you the holder of any of the government savings scheme like KVP, NSC, MIS or anything else? Than the Premature Encashment Rule 16 is very important for you to understand. Here is the rule.


Sub-Rule: 1 - Notwithstanding anything contained in rule 15 and subject to sub rules (2),(3)and (4), a certificate may be prematurely encashed any time in any of the following circumstances namely:-

(a) On the death of the holder or any of the holders in case of joint holders.
(b) On forfeiture by pledge being Gazetted Government Officer when the pledge is in conformity with these rules; or
(c) When ordered by a court of law.

Sub-Rule: 2 - If a certificate is encashed under sub-rule (1) within a period of one year from the date of certificate only the face value of the certificate shall be payable.

Sub-Rule: 3 -If a certificate is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On the encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under rule 15 shall be deemed to discount.

Understand the above rule so that it can help you to understand the premature encashment of your certificate.

Life of a Day Trader

Life of a Day Trader

Let me explain you the life of a day trader. The Life of a Day Trader is a hactic life. He swings between his job and his routine day trading activity. Let me give you one such example of my friend. My this friend works as a software engineer in some multinational company. He earns lots of money from his company but still he can't focus on his company work because of his day trading activity. I would say it a day trading addiction.

Literally millions of people are addicted with this syndrome. The desire to make instant money is very much high in the day traders and that's why they can't concentrate on their daily work during the trading hours.


My this friend has lost lots of money in the day trading activity. He doesn't believe in long term investing and appreciation of stocks on the fundamental basis. He believes in short term gains.He loves to speculate and not only this but he has spent lots of money behind his broker also for hot tips and advise. But none of such advises have made him rich yet.

When he reaches to the office, he starts his Laptop and open his online trading account. While doing the trading, he starts his routine office work. And because of his trading activity, he can't concentrate much on his job work.

I really can't understand that why people waste both of their time and money behind day trading. It is much more easy to build the wealth by doing a long term investment rather than doing the speculation in the day trading.

Well, I am not saying that trading is not a profitable business. Many Hedge funds have made billions of dollars for their investors by doing trading and taking short positions in the stocks. But well, they are the Hedge funds and they have a team of traders and research analysts and the advanced softwares and the most recent and accurate information about the market.

They can do it with the precise accuracy because they have all the infrromation and they have to do it by a team where the jobs are distributed. Now, you are alone. You have to earn money from your job as well as do the trading and market watch at the same time and you can not do all of these things at one time.

Believe me, in my opinion you should focus on your business or a job and invest your job or investment income in Equity, Bonds, Gold or Real Estate for the long term wealth building rather than speculating in the market daily. Believe me, your life will be much more smooth one you are on the path of long term investing...!!!

Is Medical School Debt Worth It?

Is Medical School Debt Worth it?

Many Students ask me this question after completing their High School. Medical Education is so much costly that to take that education, most of the students have to go in a deep debt up to their eyeballs. I myself is a Medical Student so I can understand this pain very well.

Well, my straight forward answer is - Medical Debt is worth it if you really want to become a doctor and to serve the human being. After all everyone of us will require Medical services thorugh out our life.

And yes, Medical School debt is not at all worth it if your sole goal is to get rich in your life. Let me explain you how? Well, see. medical education takes minimum 1 decade to finish. And by that time the same amount of money that you have spend behind your medical education could have grown like anything if you have invested that money somewhere else.

Accept it. This is a Hard fact. If someone starts his own Business just after finishing the high school and at the same time some other student enters into the medical school than after 20 years the person who started his own business will be much more richer than a doctor.

This is because a doctor starts earning after 10 years from high school. And for the first 5-10 years he repay all of his medical school debt that he had taken to complete the medical education. Now, during the same time, money invested in your own business could have make you a Billionaire....!!!! Yes, Billionaire... And if not the billionaire than by sure shot multi-millionaire.

But of course, not the every start-up business grows into a multi-million or a billion dollar business. Statistics show that 99 out of 100 start-up businesses fail before its fifth anniversary. And that's why if you are a schoar student and want to play it safe than join the medical school. Medical Debt is worth for you if you want to play it safe.

However, if you want to change the world by doing some excellent business than Medical debt is not at all worth it. Take the Example Bloggers & Internet entrepreneurs around the world. Most of the Internet Entrepreneurs aroud the world are in their twenties and many are below 21. And many of them are making literally 6 figure income from their Internet Businesses in their twenties.

And the best thing about this income is that, its the passive income. So you have to work hard at once to develop that income. Once you do the hard work, your job is over. After that weather you work or not the income from your internet business will keep flowing into your bank account weather you sleep or travel the world.

Many of these Internet entrepreneurs will retire in their early thirties when a medical school graduate or a specialist doctor starts earning. Can you believe that people around the world are generating the wealth at this much faster rate?

You can read such stories on this blog. I have posted several stories about the youn Internet Entrepreneurs who have made fortunes in their twenties. Just search this blog more and read more about them.

So now, you think and decide yourself that weather the Medical School Debt will be worth for you or not? Plese let me know that what you have decided by commenting on this article...!!!

Investment for Senior Citizens

Investment for Senior Citizens

Are you a Senior Citizen and want to invest your Money? Well, than there are lots of Investment Products available in the market which are ment only for the senior citizens. All of them have the advantage of 80C, tax benefits, higher interest rates than the regular products and many other advantage.

This is because it is belived that Senior Citizens need the safe and secure investments for their retirement. It is belived that now they are old and disabled and that's why they can't take more risks while investing. And keeping in mind this need all the Senior citizen Financial products come with one word - "Safe"...!!!!

But well, I don't think that all the senior citizens around the world want to invest in "safe & secure" investments. What My Question is that, Why Can't a Senior Citizen start his own Business? What about starting your own Blog Business? What about starting your own Home based Business? What about starting some Internet Business?

I mean why can't a Senior Citizen start his own Business? After all, Investment is not risky, being uneducated is risky. Why don't many sebior citizens think about starting a new business and creating jobs in the economy?

what I personally think is that, there is no as such rule that Senior Citizens should always do the "Safe" Investments. Of course, if you like to play it safe than play safe. But if you want to take some more risk and start your own Business than there is nothing wrong in that.

After all, developing a business in the economy means creating jobs in the economy and it's a good thing i think. So try this new strategy if you want to do something new and creative in your post-retirement life...!!!

How to Multiply Rs.1 Crore?

How To Multiply Rs.1 Crore?

Do You have Rs.1 Crore of Corpus? Well, than it's really a great thing. This is because very few people in India can reach up to this mark. And if you have achieved this much level of wealth than you are financially free (Keeping in mind that your expenses are under control).

Most of the people ask me that they have 1 Crore rupees and now they want to multiply this money like anything. Some ask me that Should they go for the Wealth management or Professional Portfolio Management Services (PMS)? While some people thinkg about investing this much capital in some high rish high return (But lack of Transperancy) schemes.

But well, my back fire question to all of you people who want to multiply their Rs.1 Crore is that, "How did you make your first 1 Crore? I mean where did you used to invest your money when you had just Rs.10,000 in your pocket?"

Most probably in Groth Stocks, Equity Diversified Mutual Funds, Gold, Bonds, PPF and National Savings Schemes right? Or some may have invested their first Rs.10,000 to start their own Business right?

well, Than my answer is that, Invest in the same things in which you used to invest when you had just Rs.10,000 in your pocket. Today the only difference is that you have few more zeros behind that 10,000. But that doesn't mean that you start searching something new. This is the commonest and most dangerous psychology I have seen in my life.

I mean if you have become a Crorepati by inveting in equity mutual funds over a period of 10-15 years than please continue the same way and you will have crores of rupees in the future also. Don't change your Investment Strategy.

It is the commonest psychology of the Investors. Means when they have 1 Crore on their hand they started thiking that they become smarter than before and that's why they started searching for the new investment vehicles. But remember that your Financial IQ remains the same irrespective of your Net Worth.

Never Forget this lesson. If you ever have Rs.1 Crore of Corpus in your life than continue the same investment strategies that you used to apply when you had only 10,000 bugs in your pocket...!!!

How Much To Spend on a Car?

How Much To Spend on a Car?

Do you know that how much you spend on a car affects your wealth in the long run? Yes, This is true. Buying a Car is a Financial Decision and what will be your future wealth will really depends on which car you buy in the which stage of your life?

What most of the young working couple do is, they buy expensive and luxurious cars during the first 5 years of their working life. This is because they are earning a lot. But they don’t realize that this financial decision will erode their over all wealth over a period of long time.

Ideally you should buy a car which is less than 1 % of your total net worth. Rich people buy their new car in this way. While middle class people buy a car that may be worth of 30-70% of their total net worth…!!!

You will ask me than that, in my city I am seeing lots of luxurious cars. Does it mean that all of them are rich? Well, No. 95% of them are upper middle class. They just earn more and that’s why they qualify for large loans. But in reality they have a little accumulated wealth.

Remember, A Wealth is something which you accumulate. Your Income is not your wealth. Many people don’t agree with this argument. But this is the Truth. Your Bank or a Car Company will never tell you this Truth. Because they are not in the business of spreading financial awareness to the people. So if you understand the meaning of this article than never buy a car that is worth more than 1% of your total net worth.

Now, what if your current net worth is very low and it’s 1% is not sufficient to buy a new car? Well, than buy a second hand car. The people who are rich today have drive the second hand car for several years of their lives and that’s why they are rich today.

Financial Planning for your Child's higher Education...

Financial planning for your child's higher education abroad is in important planning.

if you have a school going child than don't think that you have a time so you will manage the education fee for your child.

you have to consider into account Inflation while counting the future cost of your child's higher education abroad.

let's take the example of Rakesh.
Rakesh is studying abroad. He is doing his masters at New Jersey state.
Today when i am writing this article, the total cost of MS eductaion in USA is around Rs.25,00,000 (25 Lacs). including lodging, food, tution fees, accomodation charges and travelling & Visa expenses to go to USA.

Now if we consider the inflation at the rate of 7% (at present when i m writing this article the inflation in India is 8.24%..).

so what do u think that after 20 years how much money you will need for your child's higher education abroad.?

well... if we run the compound interest calculator than the figure goes beyond Rs 1 Crore.

so if inflation is 7% per annum than today u need Rs.25 lacs for your child's higher education at abroad but u will need more than Rs.1 Crore after 20 years for your child's higher education abroad.

So please take into account the Inflation factor before you plan your child's education expense after a decade or a two.

now let us calculate the amount and rate of return (%)you have to invest to achieve this goal.

if we consider that Indian equity market will give you 20% Compounded annual return for next 2 decades and than if we run the compound interest calculator than u need to invest Rs. 4000 per month for next 20 years in some good well diversified equity fund to achieve this goal.

it means that u need to invest Rs. 4000 * 12 months * 20 years = Rs.9.60 Lacs over 20 years to achieve the goal of Rs.1 Crore after 20 years.

but if y start investing 10 years late than to achieve this amount in a decade u need to invest Rs. 25,000 per month to achieve this goal.
means u have to invest Rs. 25,000 * 12 months * 10 years = Rs. 30 Lacs to achieve this goal.

so what it suggests?

it suggests that,

- start early or as soon as possible.
- Compound interest is so powerful over the time that it will multiply your money in a breathtaking way.
- so don't take it lightly and start svnings & investing now for your child's higher education.

Kiddy Branding

Kiddy Branding

Kiddy Branding means advertising various products (mainly financial products like Credit Cards) in young people (Usually Teens) in hope that when they will get older, they will have a strong sttachment with these product brands which they have used in their teen age.

Kiddy Brnading is an amazing concept. But well, when it comes to the credit cards, it’s really a danger concept. What the credit card companies do is they do tied up with famous games, tou companies and websites for their credit cards.

Say for Example Monopoly Game and Barbiw Dolls come with Visa/Mastercard Debit Cards. Parents think that, this is how their children will learn how to manage money.

PAYjr company has recently introduced VISA Buxx Card – a prepaid debit card for teens that can be fully managed online.

In order to use the option with the debit card, the child has to be at least 13 years of age. For children under the age of 13, they offer free chore-tracking online and printable chore Calendar which help children and parents manage what chores are assigned and what associated rewards are given. It also has a "balance owed" so that children know how much money they have coming from their parents.The service is definitely very unique and is an inevitability of the World Wide Web. Surely Visa Card will make a lot of money long term through this website because of what's called "Kiddy Branding," which is advertising to children when they're younger in hopes that they'll make use of the products when they're older (ie, use this debit Visa Card now, and chances are you'll use a Visa credit card when you're 18.)

So beware of Kiddy Branding. It is good for your Business but it’s definitely not good for your Kids.

13 Things that will erode your Wealth....

Here r the 12 things that will Erode your Wealth in long-term.

1) Smoking
2) Tobacco
3) Alcohol
4) Non-Veg Food
5) Parties
6) Extra Marital Affairs
7) Stress (Physical & / or Mental)

8) Car
9) Mobiles
10) Electronics (Cameras, Laptops...etc)
11)Shopping
12) Credit Cards
13) Debt Products (Personal loans, Car loans...etc.. except Home loans and Educational Loans)

The above 12 things will erode your Wealth in a very bad manner in a long term.
u won't even realise that how dangerous these liabilities r...

All of these r liabilities...

Example-1

Let us take the Example of Aditya.
Aditya is a top class person in his career and earning a lot of money every month.

he is fond of all the above 12 things.
Now let us discuss his expenses.

1 Party means,

5 cigarettes

2 Drinks (60 ml + 60 ml) of Alcohol

1 Dish Nonveg (biting)

1 Dish Food/meal

This is the routine per person consumption of every party right?...

what it costs?

well... 1 cigarette costs u Rs.4.
So 5 Cigarettes means Rs. 20

1 peg of Whisky is Rs. 75
So 2 pegs of Whisky means Rs. 150 right? (May b more right?...)

1 dish Non-veg biting costs u average Rs.80

1 Dish of Meal will cost u Rs.100 right?

So total per person expense per party is Minimum Rs. 350
This may be as high as Rs. 1000 to 1500 per person per party.

So we r counting Average Rs.500 Expense per party right?

And in 1 month there will be average 2 parties right?
so Monthly Expense behind these parties is roughly Rs. 1000.

So yearly Expense behind these parties is average Rs.12,000 per year.
Right?.....

So in 30 years he will do minimum Rs.12,000 * 30 years = Rs. 3,60,000

but wait....
The Actual Expense will be much more higher than this...y?

bcoz once u become addicted to these kind of parties....
Year by year its frequencies will increase and the duration between these parties will be decreased.

Eventhough let us consider the basic figure of Rs.3,60,000 ok?...

Let us assume that if Aditya Invest this money into well diversified equity diversified funds at Rs.12,000 per annum rate for 30 years.
than what do u think after 30 years at the rate of 20% per annum it will be?

Well...it will be worth Rs. 1.7 Crores (1,70,00,000)

Now let us assume that Aditya has started these kind of parties when he is in early 20s. so after 40 years means on his retirement on age 60 what will be the worth of this Investment?....

Well... u won't believe but it will be worth Rs. 10.50 Crores (10,50,00,000) or may be much more than this....

Only Rs.3.60 Lacs wasted behind the un-necessary parties can cost u Rs.10.50 Crores on Retirement.

Actual Expense behind parties is much more higher than Rs.3.60 lacs.
So now think that how much will be the loss on retirement?....

Example-2

Aditya is a Smoker and smokes average 5 cigarettes per day.

Now one cigarette will cost him Rs.4. so 5 cigarettes per day is Rs.20 per day expense right?...

So per year his expense behind cigarettes is 365 days * Rs.20 = Rs.7300 per year.
We don't count the expense of those cigarettes which he consumps on parties, weekends and on vacations.

Aditya has started smoking since he was 20.
so on 60 at his retirement means excatly after 40 years (if he survives) the total expense behind the cigarettes will be 40 years * Rs. 7300 = Rs. 2,92,000

Actual Expense will be much more higher than this bcoz every year prices of Cigarettes will be higher and higher.....

Suppose if he invest these Rs. 2,92,000 in equity diversified indian mutual fund that gives average 20% per annum return in long term than what will be it worth on his retirement?...

Well... it will be worth Rs. 6.43 Crores

Yes this is right.....

Aditya will have clear loss of Rs. 6.43 Crores on Retirement
Those Cigarettes will cost him Rs.6.43 Crores.

So if u understand the above 2 examples than please stay away from the above Wealth eroding things. Especially the first 6 ones.


The later 7 things r Wealth Eroding but r necessary.
so what u do is Buy cheap or second hand ones. so that someone else has already taken the loss.Ex- Car, Mobiles, Cameras, Laptops....etc....

Investing to Become a Millionaire

Investing to Become a Millionaire

Investment is a game of making your money work for you rather than you work hard for the money. Investment is the game by which rich people multiply their money. If you want to become a millionaire some day in your life than, you will have to play on the playground of the Investment.

You will have to make your money work for you harder to become a millionaire in your life. Your money has the same potential to work like you in the economy and generate more money. The advantage of making your money work for you harder is that, your money can work for years and even decades for day and night without being fatigue.

You can not work for decades with the same efficiency for day and night. If you know how to invest, becoming a millionaire will be very easy and automatic for you. However, you will require lots of financial IQ to make your money work for you.

You will have to find good places (Assets) to park your money so that it don’t get hurt and where it can grow easily without hurting by Tax & Inflation. Yes, Tax and Inflation are the 2 major money killers. They hurt your money. So you should always invest your money in such a manner that these 2 money killers hurt your money little.

So if you have not started investing yet, start investing now. This is because Investment is the only way to become rich and financially free. The earlier you start, the earlier you will become a millionaire. It is as much easy.

So start making your money work for you rather than you work hard for the money.

How Much to Save to Become a Millionaire?

How Much to Save to Become a Millionaire?

This is the commonest question people ask me when I say them that, it is possible to become a millionaire by regular savings and investing. The obvious question is, how much money anyone should save regularly to become a millionaire one day in his life?

The US Stock market has historically given 11% annual return in the long run. Dow Jones has given 10-11% return every year in the long time horizon (More than 10 Years). So we will assume this rate of return from the US Stock market in the long run for the future.

Now, if you run the compound interest calculator than if you start investing $ 2000 every year in the Vanguard Index Mutual fund at the age of 25 years than after 40 years, on the age of 65 you will have US $ 1 Million of Corpus assuming the rate of return of 11% from the stock market.

Now, What if you save $ 4000 every year from the age of 25? Well, in that case you will become millionaire 10 years before means at the age of 55 years only means just after 30 years from you start investing. Well, see becoming a Millionaire depends on three things.

01) Amount of Money you Invest

02) Amount of Time you Invest

03) Rate of Return on your Investment

Now, What if you Invest this money in something which gives you 20% annual return? Say for Example, The Internet Business? You can expect 20% annual return from the Internet business easily. Well, in that case after 40 years, your $ 2000 invested annually will become $ 40 Million….!!!!

And you will first time become a millionaire just after 20 years means at the age of 45 years (Assuming that you have started investing at the age of 25).

Thus, how much money you should save to become a millionaire really depends on the rate of return on your investments as well as how quick you want to get rich. So Save Accordingly…!!!

Ways to Become a Millionaire

Ways to Become a Millionaire

Becoming a Millionaire is anyone’s dream in life. 1 Million Dollars is the landmark of financial success. If you reach this landmark than you can fulfill all of your dreams in your life. People ask me about the ways to become a millionaire. Well, you can become a millionaire in any field. There are lots of ways to become a millionaire.

Read here 41 Ways to Become a Millionaire by millionaire-opportunities.com

You can see in the above list that, you can become a millionaire from any field. You can become a millionaire by doing a high paying job at management level of some large corporation, by becoming a successful professional in any field, by doing a Business or by doing Investing.

There are lots of ways to become a Millionaire and I divide these ways into 4 broad groups.

01) Become an Employee (Here you work for someone else)

02) Become a Self-Employee (Here you work for yourself and provide some kind of professional service in the economy)

03) Become a Business Owner (Here you own a Business and you hire employees & self-employees for your business to run it properly and you collect money from the investors to do a business. Here a System (Business) works for you rather than you work hard for the money)

04) Become an Investor (Here your money work for you in the economy and generate more money rather than you work hard for the money like employees & self-employees)

Thus, you can become a millionaire by any one or more of the above ways. But your life will be different in all of the above ways. I Personally prefer to become a millionaire by becoming a business owner & the Investors and that’s why I have started my own Blog Business.

The only problem with becoming a millionaire by being an employee or a self-employee that, the more you will become rich, the less time you will have for your family and for your own life to enjoy. If you are doing a job at some high management level of some corporation than more you get rich, the more responsibilities you will have and the less time you will have to enjoy your life.

If you are a famous and rich doctor, you will have more money but less time for your family.

But the thing for Business Owners & Investors is different. For a Business Owner or an Investor, the more they get rich, the more time they will have to enjoy their life. Because the more their business and investments grow, the more they become independent and afford to higher high class level of business or investment managers to run and manage their businesses and investments.

Take the Example of this Blog. This Blog is my Internet Business. The main advantage of owning this business is that, the more it will grow, the more money it will make for me and more rich i will get over the time and the more rich I will become, the more time i will have to enjoy my life.

If this Blog Business grows sufficiently, I can hire a team of writers to run it even without my presence and by doing this I can add 60-80 more free hours in my life every week to travel the world and enjoy my life.

So which way to chose to become a millionaire is very important decision in your life.

Save to Become a Millionaire

Save to Become a Millionaire

People ask me the following common queries.

- How to become a Billionaire?

- Is it possible to become a millionaire in one generation?

- I am doing a job. Can I become a Millionaire?

- I earn only US $ 40,000 per year. Can I Become a Millionaire?

- Which is the best investment advise to become a millionaire?

- And many more queries like this.

Well, the answer of all of the above question is – It is Possible to become a Millionaire. All you have to do is Start Savings & Investing as early as possible in your life means now.

This is the 95% advise that anyone in this world needs to become a millionaire or even multi-millionaire. If you start saving US $ 2000 every year at the age of 25 years in Vanguard Index Mutual Fund than after 40 years when you retire at the age of 65 years, your net worth will be more than US $ 1 Million assuming the long term US Stock market return of 11% from the Vanguard mutual funds.

Your Total Investment over the period of 40 years will be just US $ 80,000. and still you can retire with a million dollar. It is that much easy. And if you can save more than $ 2000 per year, you can retire with millions of dollars.

The only thing is that, you have to start savings & investing early. The earlier you start, the compound interest will work more in favour of you to make you rich over the time. Most of the people spend lots of time behind learning complex financial products and sophisticated investment strategies. But they fail to take action. They fail to start early.

Time is the most precious element in investing. So Start Saving to become a Millionaire…!!!

Get Rich by Saving

Get Rich by Start Saving in your 20s

Many of you may never heard the miracles of the compound interest. The Compound interest so powerful over the time that, it multiplies your wealth in a breath taking manner over the time. Now, if you are in your twenties and want to get rich in your life than the only thing you have to do is – Start investing early.

Here is the real time example.

Consider this scenario: If you begin saving for retirement at 25, putting away $2,000 a year for just 40 years, you'll have around $560,000, assuming earnings grow at 8% annually. Now, let's say you wait until you're 35 to start saving. You put away the same $2,000 a year, but for three decades instead, and earnings grow at 8% a year. When you're 65 you'll wind up with around $245,000 -- less than half the money.

You can see in the above example that only 10 years of difference in investing makes a huge difference in wealth later on. This is because of the compound interest. If you never start investing, you will never become rich and financially free.

And if you someday really want to get rich in your life than you should start investing as early as possible in your life probably in your twenties. Warren Buffet is the second richest person in the world and he started investing in the stock market when he was just 13. Today he is 80 and he has accumulated tremendous wealth only by investing his money.

Many people have a false belief that, to become rich, they need to build a fortune or do some large scale ventures in their life. But this is a Myth.

To Become rich in your life, you need to do one simple thing in your life and that is – Start Savings & Investing Early.

Yes, This is the 95% advise that anyone needs for his/her financial success and rest of the advises amount for only 5% for getting rich. So if you are in your twenties than it’s the best time to start investing.

Investing for College Education

Investing for College Education

Which is the best time to start Investing for College Education of your Children? Well the Answer is -

NOW…!!!

Yes, The answer is now. According to my theory, the day you have strike this idea in your mind, you should start investing from that day only for your child’s college education. Now, you will ask me that, but I don’t have children because I am not married yet. Well, please don’t give me excuses.

My Answer will be the Same.

If you are not married than it’s fine. But Than also start investing for college education of your children NOW.

Now, you understand how important starting early is? Even if your children are not born, The Best Time to Start Investing for anything in this world is still NOW. This is because the power of compound interest. The compound interest is so powerful over the time that, it multiplies your money in a breath taking manner. But for that, you have to stay invested for the long time horizon say for example more than 10 years.

Even if you are just married today and don’t have any kids than also it is advisable to start investing for your kids. Because the more early you start, the more compound interest will work on your investments and the more capital you will accumulate for your children for their college education.

In USA, the college education fees are getting higher and higher every year and that’s why it is advisable to start investing small amounts of money early but regularly rather than earning a lot when your child grows and near their college education.

So now you have read and fully understand this article. So now it’s the time to start investing for College Education for your Children.

Investing for Children

Investing for Children

Do you have children? Have you ever planned for the financial future of your children such as College Education, Marriage, Career…etc?

Most of the people in United States never think about the financial future of their children. And when they start thinking about their children’s financial future, It’s too late. Yes, This is true. I receive so many queries from USA like, I want to Invest for my child’s future but don’t get enough time from my job or I want to plan the Investments for my child’s future but what’s the hurry? They are just kids and many other excuses.

But well, according to me all of the above are the excuses and nothing else. Ideally you should start Investing for your Children from the first day they born. Yes, Starting Early is that much early in the game of Investment. There are several Child Insurance & Investment schemes available in the US Market. You can chose any investment scheme from the financial market.

However, the thing is that, You have to TAKE ACTION & START INVESTING EARLY. Starting Early is the only key of the Financial success. This is because those who have started early will accumulate more wealth than those who have started late or never ever invested.

Several people I know from USA have their children in High School but they are so much deep in debt that they simply can’t start investing. So your financial life is directly related to the Investment success. If you are a deep in debt than you will never ever invest for your child’s future.

So first of all, chose the sound financial life. Stay away from debt, spend less than you earn and start investing for children as early as possible means now…!!!

Investing for College Students

Investing for College Students

Are you a college going student? Than let me ask you a question. The Question is – Have you Started Investing? I know that many of you will think that, what a crazy question is this? How can a college going student start investing? After all, the college life is the time to enjoy a life and spend money and still there is a long way to go for retirement (probably at 65) than what is the need of Investing for College Students?

Most of the college students think in this way. They think that Investment is a game of old people. Once you get old or near your retirement, you should start investing. But well, this is a Myth. The Truth is that, you should start investing as early as possible in your life means Now.

Warren Buffest has started investing in the stock market when he was just 13. Today he is 80 and he is world’s second richest person after Bill gates. Starting early is very necessary even if you are in your college life. No matter how small the amount of investment is but you should start investing from your college life.

You can do a part time job in your college life and make some extra money or you can save money from your pocket money and start investing in mutual funds, stocks, bonds, gold, domain names, blogs, web properties or any other asset.

There are several assets available in the market. Rather than adopting a hyper consumer life style in the college life, you should try to understand the importance of investing in your early life. Unfortunately, most of the college students spend their time, money and energy behind unproductive things and when they enter into the real life, suddenly all the college life enjoyment disappears.

And they started thinking that, working hard at the job place and living paycheck to paycheck is the life. What they have lost in the college life is TIME & not the money because the lost money can be recovered but the lost time can never be recovered no matter how much money you have…!!!

Start Investing with Little Money

Start Investing with Little Money

Every week I receive this common query from several readers. And that is - “I have little money to Invest. And that’s why I can’t start investing.”

Well, my advise to you is that, Start Investing with Little Money. Unfortunately, most of the people have a false belief that, to make huge money, they need to invest huge amount of money. But this is not true. In fact, the compound interest is so powerful over the time that, little money saved and invested every month over the period of long time can end up with large corpus at the end.

If you don’t have large amount of money to invest than start investing small. Start SIP in some good Equity Mutual Fund and continue SIP for as long as possible say for example, 5 years, 10 years or even more.

Small amount invested every month in SIP can transform into a huge Capital in the long run because of the powerful effect of the compound interest on your investments. Most of the people don’t understand the power of small but regular savings and that’s why they give the excuses that, I don’t have enough money to start investing or nothing left at the end of month for investing and so on.

But these are just the excuses according to me. The reality is that, The Compound interest is so powerful over the time that, it multiplies your wealth in a breath taking manner over the time. And that’s why you should not care about how small or how big you are investing. You should only care about long term, even small but regular investing…!!!