INVESTMENT AT YOUNG AGE

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett

This is the simple way to become to rich given by man having net worth of 83.3 billion us dollars, he started investing at age of 11 and when asked about right age to start he said he was 11 years late to start investing. So it is very clear form this statement of mr Buffett why investing at young age is important.

It is important to note that saving money at young age to invest isn't easy, but you simply can't afford to wait until it is convenient. Simply start by making small investment and give them time to mature, let's compounding do it's magic. Investing in share market at young age is the best decision one can make, you can start with as low as 500-1000 ruppes and then when you have gained enough experience you can invest more money

Why is investment necessary?

 It is necessary to beat "Inflation" which means general increase in the prices and fall in the purchasing value of money. Let's understand this by example-
Before 25 years back it use to cost 30-40 rupees to watch a movie and now it cost around 180-200 rupees, this happened because of what is known as inflation.
Inflation reduce the worth of money, average inflation rate in India is around 7-8% , it means that if you keep your money in safe it looses it's value by 7-8% every year.

So what we need to do to beat this inflation?
Answer it quite simple one , we need to invest our money in such instruments which could give us more than 8% return every year.

Where I can invest?

There are many options to invest your money , here are few of them

1 Public provident fund
2 Mutual funds
3 Investing in stock
4 Equity linked saving schemes
5 government bonds
6 bank fix deposit

All this instrument can help you to beat Inflation rate and secure your future but the key is to invest in right instrument and having patience.



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