Tiwari passed me this link from rediff.com. The title is 3,500-year-old investment tips that still work! by Akhilesh Tilotia of PARK Financial Advisors. I was so impressed by this that I decided that the whole nation should know about it. So here it goes on a Sunday morning:
- Pay yourself first - Before you pay others for the services that they give you, you should save money for yourself. You are working for yourself and not just for paying your bills
- Make your money work harder -Indians typically 'save' a lot -- as demonstrated by the savings to GDP ratio of around 30%. However, in many cases, savings do not translate into investments, which earn returns. Leaving money in the savings account for a rainy day is not investment. Such savings are like impotent people, who are progressively eaten away by age -- and inflation.
- Take calculated risks -- but do take them - Depending on your circumstances, you should define the amount and nature of risks that you can take. If you are nearing your retirement and have painstakingly built your nest-egg over your working life, it is important for you to ensure safety of your principal. Conversely, if you are young and without responsibilities, you can risk your savings for higher returns.
- Be persistent - There will be shocks on the way, but it is important that your savings are working for you
Amazingly simple. Now that you have acquired the gyan...start implementing it. This is where our nation fails. We are a nation of consultants and critics. All know the way but do not know how to drive.
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