Wednesday, April 29, 2009


Different individuals may happen to influence our lives at different points in time. My paternal uncle is working for a bank, he one day exposed me to money management, while I was pursuing my graduation at Varanasi. After my mother expired, savings and investments were haphazard. But my father balanced every phase of our lives. The time then arrives, when my father started discussing with me his savings and investment strategies. Gradually over a period of time, I observed the family managed to create sufficient savings to meet many of our responsibilities like by my post graduation, my brother’s higher education etc.
From this above narration I just want to imply that when we are young, we can set the ball rolling, so after graduation its inevitable for all those who are either from business back ground or not but should save for fulfilment of future needs and accomplishment of dreams.
Even though if one’s income is low, expenses are well controlled, them one can easily sustain the golden rule of savings. It is not like compromising it is more like investing. For example, if one has an annual income of Rs.3.4lakh (P.A) almost 43%of his or her income is being saved (as per my information). As we all know demands and desires are keep on increasing with each passing day, similarly as age increases, expenses also keep pace, But remember your income and the experience of managing it is also increasing. As such when this Mr.X with Rs.3.4lakh (P.A) package reach to his 30s, he’ll have home EMI followed by expenses related to his dependents. In his mid to late 40s expenses will increase and 5os it will be very high. As the trend suggests, in 50s, one is just a decade away from retirement.
Further, in the 20s and 30s many goals are more than a decade away and hence investing in high risk avenue is possible. Ergo while one enjoys one’s new found financial freedom in one’s 20s and 30s one have to keep an eye on long term goal as well.

1 comment:

  1. Agreed. (In most cases expenses & its increase incurred is not on a/c of needs but because of likes/dislikes and because of human nature which relates success purely based on once tangible possessions).

    God (the one in whom you have faith) bless you, with forgetting me, humanity and livings beings.
    Pranav Pradeep Patki