(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)
One compelling reason to manage your money effectively:
Power of Compounding:
There are many compelling reasons to manage one's money effectively, but I can tell you one compelling reason as to why you have to manage your money effectively, and Power of compounding is that reason...
Story of Five friends:
Mr. Lazy
Mr. Fun
Mr. Cautious
Mr. Calculator
Mr. Smart
All of them put Rs 1 lac at the same time and after 20 years lets see how they have done?
Mr Lazy @ 6% - Rs 3.21 lacs
Mr Fun @ 9% - Rs 5.61 lacs
Mr Cautious @ 12% - Rs 9.65 lacs
Mr Calculator @ 15% - Rs 16.36 lacs
Mr Smart @ 18% - Rs 27.40 lacs
If you observe, the difference between each one is just 3% in returns, but look at the difference in returns over the period of time... And that's the power of compounding for you my friend... It works very silently...
Remember earning money is only one side of the coin; but creating wealth is the important another side of the coin...
Just by effectively investing the money Mr Smart has got 21 lacs more than Mr Lazy, who had kept his money in his savings bank A/C...
So decide if you want to be Mr Lazy or Mr Smart on managing the hard earned money... End of the day, you work really hard to earn money... The next time you leave it in your savings bank a/c, think about the power of compounding...
(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai which offers i.S.M.A.R.T financial plan. Feedback can be sent to ismartfp@ gmail.com)
Good reason you drove out. Specifically in order to maintain a strategic and streamlined fashion in terms of the money management, one term that keeps utmost importance in the segment is the expense. Whether its a small or a big but the expense literally keeps an utmost importance to be considered there of. And to have those managed in all possible case, one tool that I believe to be practically inclined is the cloud based expense reporting software from Replicon. The hassle free tool which is featured with the user friendly and calendar based interface makes it an intuitive tool to work with.
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