A 5 year delay in saving money could result in a loss of 1 crore! Understand it here

To safeguard the future financially, it is important to invest as soon as the earnings start. The postponement of saving has the same effect on the financial situation at the time of retirement.

  • News 18
  • Last updated:November 19, 2020, 9:36 am IST

New Delhi. You could lose millions of rupees on your first investment with a delay of a few years. Most financial experts say that saving should start at the start of the job. You do not have to save a large amount for this. Investing can be started with saving small amounts. With this small amount every month, a large fund can be prepared as savings for your future. Today, based on a savings of Rs 5,000 each month, we will tell you how beneficial it can be for you in the long run. You will be surprised to know that you can lose a million rupees just by a 5 year delay in saving. For example, we take three investors. These three investors have started investing Rs 5,000 every month at different ages. All of these investors invest for retirement up to the age of 58. Also read: SBI offers the cheapest home loan! 100% discount on processing costs >> Investor ‘A’ started investing at the age of 23. With an investment of Rs 5,000 per month, they expect an average return of 11 percent. At the age of 58 they have Rs 2.64 crore as a pension fund.>> Investor ‘B’ has started investing Rs 5,000 every month since the age of 28. They also expect a return of 11 percent. At the age of 58 they have Rs 1.40 crore as a pension fund. >> Investor ‘C’ starts investing at the age of 33. They are also expected to get an 11 percent return on their investment of Rs 5,000 each month. Accordingly, at the age of 58, investor ‘C’ will only get 79 lakh rupees as a pension fund. Also read: Why has India failed to join the world’s largest trade deal, what will the impact be?
The example above clearly shows that for an annual return of 11 percent, an investment of Rs 5,000 each month can generate up to Rs 1 crore in 5 years. If you look at the 10-year gap, this number gets even bigger. After this example, it can be said that the sooner the investment is started, the financially stronger your future will be.

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