Excellent article. It is about money management and culture of saving, but still there is something I can not ignore. It is called "devil is in details". Author has only talked about expenses, but seems to have forgotten to include in formula. And then comes unexpected expenses, that come when you are most unprepared. One thing I don't understand is how you can save 2,864.50 per month at the age of 20. At that time, most of people are students and depending upon their parents. I say good article but faulty formula.
there are many other ways to be a millionaire.. but there is a sure way to loose money if you invest into equity. Many businessmen like dirubhai, naraynmurthi... earned money doing business.. created wealth. companies may not post yearly sales equilent to the money taken in IPO. they declare dividend and then do not pay.. annulled.. many other gimmics they play.. once the qty. is within their control then you can see how stock price rocked up.. listed companies do business.. they earn money in market with operators..
As mrs. sharma sugest to inest 2827 pm up age of sixty mrs sharma forget it that it is not possible to save such amount in rutine and second most worst think is inflation suposed i save 100,00,000 at the age of sixty it remain 40Lac only as per inflation on this day, so is there anybody ready to throw his 60,00,000/- in the mouth of inflation, No doubt Idea is great for the saving point of view
I dont know whether this will work, but yes it has actually motivated me to start saving the money. I have been earning from a year now, but did not take savings seriously. But now as moving ahead in life, I have to come to the conclusion - Savings are your financial strength and not your expenditure. If we have money and still need it then we need to be moneywise.
I dont know whether this will work, but yes it has actually motivated me to start saving the money. I have been earning from a year now, but did not take savings seriously. But now as moving ahead in life, I have to come to the conclusion - Savings are your financial strength and not your expenditure. If we have money and still need it then we need to be moneywise.
Nice article... but a word of caution to all readers, MF is not the best way to invest your money as there are lot of risks in it. 1) It is linked directly to the equity market and thus profit will not always be the same. 2) Lot of MF have entry, exit load and lock in periods which make it difficult to exit when the stocks crash. My suggestion would be to invest in FDs and put a small percentage of your money directly in stocks. Would you want your money to be managed by some MF owner or yourself? Cheers
I do not agree completely with the author on mutual funds being the best option. Having myself invested in the stock market, here are a few pointers from my end which readers should be made aware of 1) MF is impacted directly by a fall or rise in the stock market... what this means is a 22% rate of return will not always persist, there would be times when the stocks that the MF invests in would nose-dive based on FII, economy, govt and a host of other reasons. It is possible for a negative rate of return as well 2) Most cases, MF is a gamble where in the MF managers do not have any idea themselves what or which stock they should buy? My final suggestion is if you have the appetite for risk, why don't you take the risk yourself by investing in stocks directly rather than some MF manager manage your money Else FDs from bank is still the best option. Cheers Kartik
RE:Can somebody explain me how this works?
by on Oct 06, 2007 07:00 AM Permalink
The algebraic formula I like to use is A=P(1 (r/n))^nt where A = total amount, P = initial amount of deposit, r = rate of return, n = how often it is compounded ( ex. if compounded quarterly "n" would equal 4, annually would be 12), t = time in years. Hope it helps.
