Written By Saesha Bansal (Grade 8)
Are you a teenager, and want more than Rs 1 crore in your account by the time you’re 40???
I have a trick, and you can earn this money by doing almost nothing. Surprised, read on. But before that, let’s talk about savings. Savings are a life’s best kept secrets that promises a great future! One’s savings should always be deducted from their income. Each individual should ensure to have their savings to be more than or equal to their expenditure. There’s no defined amount about how much one should spend, but one should only spend a specific percentage of their earnings. A general rule of thumb is to save at least 50% of your income. Now let’s come to the trick on how you can make so much money in just a few years. Growing money is a process known as compounding. It is crucial for everyone to understand this idea; even for a young child. This concept is often explained to us during our early years through the story of 1 grain of rice getting doubled on a chess board. That doubling is nothing but “COMPOUNDING”. In the same manner, if all of us make a small compromise, by cutting a Starbucks a month, one trip to H&M and one dinner with friends, we can easily save 3000 rupees a month, especially those of us who are so privileged! If we invest just 3000 rupees every month from the age of 13, we’ll make a whopping 1 crore 9 lakh rupees by the time we are 40! We can simply invest a specific amount into mutual funds every month, or invest into Sensex or NIFTY which are a group of the top 30 companies at any point of time, ensuring no loss of one’s money.
So, what are you waiting for? Apply this simple trick and everyone can be a millionaire!
Featured Image Courtesy – Corporate Finance Institute
