Investment delay-How many crores you will lose?
An investment delay will cost you very much. You may lose in crores of wealth also in the long run.
Here, in this article, I will explain how many crores you will lose with an example.
Case Study for Investment Delay…
- There are two persons Ram and Shyam whose age is 23 years.
- Both got a job recently, and the salary per month is Rs.50,000.
- The salary growth rate expected is 5% every year.
- Both of them can save up to 20% of the salary per month ( Rs.10,000).
- But only Ram started doing investment Rs.10,000 per month.
- While Shyam wants to spend the money without saving or investing and would like to save after 10 years from now.
- Both Ram and Shyam are expected at age 60.
- The investment return expected is 10% per year.
How much wealth That Ram created and How much wealth that Shyam has created?…
You can see in the above image that Ram has created more than 4 crores of wealth, as he started his investment early(without delaying investment) i.e immediately after getting the job.
Now let’s see that How much wealth that Shyam has created if he starts investing Rs.10,000 from age 33 up to 60 years ( retirement age).
You can in the above image that Shyam was able to create 1.5 crores wealth only if he starts his investment at age 33.
In addition, Shyam had created 2.62 crores of wealth less than Ram ( 4.13 crores).
This has happened to Shyam, as he postponed (invest delayed) his investment for 10 years ( for 120 months).
Conclusion about Investment delay…
Every one of us will be having a few financial goals like child higher education, child marriage, buying home and financial freedom planning ( retirement planning), etc.
In addition, we have to invest in the above financial goals immediately after we started earning money.
I am not against spending money completely.
But I am against spending unnecessarily.
If you do an investment delay for the financial goals with unnecessary spending, you will also end up accumulating less wealth like Shyam in this article.