(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)
Leading an i S.M.A.R.T financial life...
http://timesofindia.indiatimes.com/tech/news/hardware/iPhone-4S-to-sell-for-Rs-44500-in-India/articleshow/10780622.cms
News headline says iPhone 4S to cost around Rs 44,500 in India... Rs 44,500 for a gadget which may last for a year or two.. And am sure even if one does not change it, it will be outdated by then...
For an assumption lets see what Rs 44,500 can buy other things in our life which can secure our and our family's financial future...
For an average 35 year old person, can you imagine what would be the approximate life insurance cover he can get for the same Rs 44,500?
A whopping....
Rs 2 Crores of life insurance cover...
If one invests Rs 45,000 in equities earning a CAGR (compounded annual growth rate) of 18%, can you imagine what kind of wealth he would create after 20 years?
A whopping...
Rs.12.33 lacs. Yes, Rs.12 lacs & 33 thousands...
In simple terms, Rs 45000 would have multiplied by more than 25 times... That's the power of compounding.
Lead an i S.M.A.R.T financial life for a brighter financial future...
(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)
This has to be a relative comparison. For that matter if rather than spending, you invest any money it will be worth more but that is not the point.
ReplyDeleteThe idea is to show a bigger picture of the money's worth and not to discourage spending. The message I wanted to convey is that investing and spending has to happen side by side.
ReplyDelete