It's all about money honey...

Invest, before its too late.

No, I am not advertising for any investment firm. I am writing on this just because I fail to understand how today's youth can be so casual about something as important as their own future. Is living in "today" so important and fashionable that you forget to get your future secured? I started investing when I turned 25, and ideally that's about time when you should start thinking seriously about it. If its earlier, even better.

Investment does not mean that you are depriving yourself of something today. You just ensure that you take part of something that you have and keep it for yourself to be used in the future. So if its saving something to be used for yourself, why are people reluctant to invest! Its not like your giving away something that yours to someone else. Charity is an entirely different ball game, and not many can practice it.

Investment should be done by having an aim and definitely having guidance. I am no adviser, I can only tell what I have experienced. Earlier there weren't many options available for investing, but now there are numerous schemes out there and everyone can surely find more than one which suits him / her. The best and easiest option for me was opting for SIP - Systemic Investment Planning. You don't need to do anything, just the first installment cheque and the amount gets debited from your account on a regular basis. How easy is that!

When it is said that you should invest with an aim, it simply means that suppose your income is A, expenses are B, and you want to buy a car by 2012. You would need to invest C amount to have enough capital for the down payment. It helps to have a clear picture of what your requirements are. If you are amongst those who do not realise when the salary gets over, it would be advisable to have a expense diary for a week atleast. You will realise which area drains away your money the most and then you can work on it.

Depending on your expenses, you can decide how much amount can you safely keep aside every month. Of this amount you can then choose to invest in various schemes so that you do no incur losses. It wouldn't be advisable to directly enter the Stock Market for investment. Unless n until you have thorough knowledge and some expertise in that field, do not make it your first investment option. The MFs are a safe bet and can be used as an option for SIPs. Other safe option is the PPF (Public Provident Fund) and Fixed Deposits. The PPF helps to save income tax as well.

If you just Google the number of options available for investment, you will be surprised. This quote by Abraham Lincoln says it all - You cannot escape the responsibility of tomorrow by evading it today.

-Mayura (28 Dec 2010)

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