Make Money From Money

We dream from childhood that I will grow up to buy a car, I see a big bungalow and I think that I will grow up to build such a bungalow.

I will earn a lot of money and travel the world.

Growing up we earn money but cannot save properly.

We all earn a lot of money but spend even more than that.

Suppose you have made a profit of 100000 in your business this month but against this your personal and household expenses are 120000. So if you avoid saving money, you are instead increasing the debt.

Saving money and proper investment is very important for long term. For our future, for our children and most of all for our old age.

All these things are not taught to us in school or college but they are most important.

An average person starts employment at the age of 20 to 22 years. His salary is 15000. His monthly expenditure is 12000. They will have Rs 3000 as savings every month.

He will deposit those rupees in that savings bank account or FD. So 36000 will be invested every year.

Assuming his salary will increase next year, he will be able to invest 3000 per month even if the expenses also increase.

If you save for ten years it will be Rs 360000.

If he has a savings account he will get 3 to 4 percent interest. If a person invests in FD then he will get maximum 9% 7-8% interest. If a person has invested in that mutual fund then he will get 15% interest in ten years. If he invests in that stock market for 10 years, he will get 30 to 40% interest.

Stock market will give the highest returns.

More returns will come from the stock market than real estate, gold or bonds.

If we talk about inflation, let's say that when that person starts investing, the price of petrol will be Rs 60 and after ten years it will be Rs 100. It has increased by more than 50%.

The grain which used to fetch Rs 25 per kg will fetch Rs 40 to 45 per kg after 10 years. One cylinder of gas costs Rs. 500 to Rs. 800 will be available. Conversely, the return on their savings will be much lower.

A person takes insurance from an insurance agent. In which if you pay 40000 to 50000 premium for some years then you will get 20 to 25 lakh rupees. When that amount is received after 15 years

The advantage is to the insurance agent as he gets 20 to 30% commission.

If a term insurance is taken against it, the premium ranges from 10000 to 15000. There are different premiums based on age. It provides insurance up to 1 crore. An insurance agent gets 10 to 15% commission.

First insurance has an insurance cover available from 200000 to 2500000. After 20 years if we get him a bank account or FD he will get 150000 to 200000. 12 to 15000 rupees per month will be given to the family.

While in term plan you will get 1 crore. If it is deposited in a bank account or FD, 6 to 7 lakhs interest will be earned every year. That means the family will get 50000 to 60000 per month. Such amount will be very helpful for the family.

As for the second investment, if that amount is invested in stock market every month through SIP rather than insurance, he gets both dividend and bonus for life till the company is closed.

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