Introduction

Are you also someone who likes the great road trips, the amazing food, the fashion  obviously who doesn’t like that but did you ever wonder the amount of money that you spend on these things can turn out to be a shock when you realise that the same amount can be worth lakhs and even crores by investing them right?

Oh did I drop a heavy word on you, let' us understand it together. Investment is the process of actively trying to make that money grow by buying (investing in) something you think will go up in value. You tend to save smaller proportions of your income but with a bonus known as return on investment. 

When we are in our 20’s we usually think of life as an adventure where we want to be carefree. This makes me think that it's the best opportunity to take risks as nothing comes for free. Similarly, taking a risk in the right direction can help you establish a desirable life for yourself.

“Someone’s sitting in the shade today because someone planted a tree a long time ago. “ – Warren Buffett

The Secret of compounding

A secret or maybe a technique when you compound your money you are magically multiplying it by investing just to keep regenerating it by investing a small amount.

Let me explain this with an example let there be 2 persons A and B both of them started investing  but A started investing at the age of 20 while be starting investing at the age of 30

At the age of 20 A invested rupees 2000 for the next 40 years, similarly at age 30 B invested rupees 4000 for the next 30 years. Both at a ratrate oof interest 5% .

Now you must be wondering that even though A started at an early age B could have been able to reach the same amount as  A invested because he’s investing exactly double of what A is investing??

Calculate it for yourself and find out??

Did it shock you? Well Of course it did But wait that’s what secret of compounding is and the power of starting investment at an early age.

“NEVER UNDERESTIMATE THE SMALLER STEPS YOU TAKE TOWARDS YOUR GOALS”

According to me the concept here is not just pertaining to money but it's also related to having a safe and secured future. Which is why you might have several calculations happening right now after reading this, well that's good news you are trying to think about your future. Executive your plans for better knowledge.

Doubts about investing?

Do we have to invest all the money that we are earning?

This is the most asked question amongst teenagers,  the answer to this is short and simple small proportions of your income or stipend or savings can help you reach your goal

This visualization of investing hefty amounts to earn greater return is a myth if you start early you earn rapidly

Where do we start investing?

To start investing specific kind of account is required which is known as the Demat account. Earlier without stable income people were not allowed to open a Demat account but again today it has become much easier and anybody can invest in the market.

If it was this important why our teachers, parents and institutions didn’t tell us about this?

 The answer to this question is simple and straight a person who understands the worth of compounding will be aware of the power of investing. Lack of knowledge and awareness amongst people has hindered them from investing in the share market.

Isn’t it risky to invest?

Until and unless you stick to investment rather than trading it is nothing close to risky investing.

How investing impacts an individual’s life?

Investing is an art of discipline, it not only impacts an individuals financial status but it's an overall development of the personality. Understanding the investment mechanism could be tricky but the most important thing to be understood that learning is the key.

Numerous benefits can be seen in an individual life, Apart from those that are monetary.

·        A certain sense of controlling the money generates in own self.

·        It can help you perform better budgeting for the smooth functioning of the cores.

·        Investing helps in forming a smart mind which also helps in understanding the economic mechanism.

·        Last but not least it can be great as a skill enhancement and for career-building opportunities

  “Patience is the key while we start to     invest in the  stock market”

Books to read if you want to invest.

1.      The richest man in Babylon

2.      Rich Dad, Poor Dad

3.      The intelligent Investor

4.      Money Master the game

5.      Happy Money