You will not have to work!
You probably have heard the phrase “Let your money work for
you!”. Just incase you do not understand what exactly this means,
let us explain. The whole idea of investing is that you create or buy
an “asset”.
What is an asset?
An “asset” is something that generates money. Just to
give you an example, if you buy a flat for 4 lakh and then rent it out
for Rs.3000 a month then you have created an asset. An
“asset” that generates Rs.3000 a month.
However, this is just one type of asset. Assets are of many kinds. If
you have a “copyright” or patent in your name, for which
you get paid a certain amount when anybody uses it, then that too is
called an asset. If you own a small pay phone from which you make just
Rs.20 each day, then that too is called an asset!
The above given explanation is very crude, but that is the basics of
investing. You want to invest the money you make in assets. Assets that
generate money. The idea is that once you invest your money in enough
assets, you can stop working. All your assets will make money for you.
You can then use this money to enjoy life. Or you can use this money to
invest in more assets that generate more money! So all this gives us
the phrase, “Let your money work for you!” This is the main
aim of investing. However, there are many other smaller aims of
investing and we have explained them to you next...
Next - For making "big buys"! >>
<< Previous - How to manage your money? - Intro
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Table Of Contents
- How to manage your money? - Intro
- Why should you invest your money?
- >> For making "big buys"!
- >> For tax saving!
- >> Inflation
- >> "The power of compounding!"
-
How to invest?
-
Investing in Mutual Funds!
- Assured return investments...
- >> Fixed Deposits (FD's)
- >> Public Provident Fund (PPF)
- >> Employees Provident Fund (EPF)
- >> National Savings Certificate (NSC)
- >> Kisan Vikas Patra
- >> Post-office - Monthly Income Scheme
- >> Post-office - Time Deposits
- Insurance