Invest — Because why not?
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett
In the first year of my career I asked my father — Where should I invest money to save my taxes. His only two suggestions were NSC and FD. Gold is another favorite of Indians but owning gold jewelry business himself, he didn’t suggest the same. Well, I am not against investing in these but you should explore all the options before making a decision. I’ve known many close acquaintances who do not invest at all. They seem to be comfortable in spending all they earn or just keep the money in their saving accounts and enjoy their 3–4% interest. Well, there were only a few who believed in the power of investing and did it religiously. I was curious to analyze further the one’s who didn’t invest.
In the Indian context, only 2% of the population invest in the stock market as compared to around 48% in the US.
On investigating further for the reasons why people avoid investing in stocks or even any of the financial instruments, I found a few important points:
- Lack of money
- Lack of trust
- Myths associated with investing
- Not willing to take risk
- Lack of knowledge or awareness
I strongly believe that the government should enforce education related to tax and investment during our school/college. At a minimum, we should not panic when we enter the world of earning, be it job or business, as many of us would have already experienced. Knowing the basics can help an individual to have a better financial condition with the same amount of money they have.
Why should I invest?
One of the first questions that come into a newbie’s mind is that why should I invest? Am I not good enough to keep my savings in my bank account? Isn’t it an investment for those who have a big amount of money?
Well, there are several reasons which will help you understand why should you invest?
- Save Taxes
- Reach your financial goals
- Build Wealth
- Beat Inflation
- Children’s education
- Retirements
Where should I invest?
There are several financial instruments where you can invest based on your need and risk-taking appetite. Make an informed decision. There are several apps that provide you platform to invest. Don’t hesitate in talking to an authorized investment advisor to learn more and make your investment personalized. Consider them as a doctor for your finances. I am sure you don’t want your finances to be off track just like you would like your health to be at its best. I personally like Zerodha for investment and IndWealth for organizing my financial life (not an endorsement)
Ok, thanks for the information, what next?
I am no investment guru. The purpose of this article was just the tip of an iceberg. Intentionally, I didn’t mention the elaborative details of individual pointers above as I would strongly recommend you to do your own research and invest as per your own financial needs. There are several articles, videos on the internet where you can learn. Be very cautious about making a decision before investing. As it is rightly said — Knowledge is power, use this power in the world of investing, and let the magic unfold.
Disclaimer and suggestion: Do your own research!
A good starter: https://zerodha.com/varsity/
