Let’s be honest, how many of us have thought that investments need at least a suitcase full of big bucks. What if we were to tell you that it is simply untrue. The stock market is not a playground only for the rich. Let’s figure out the truth.

First, let’s tackle money. To invest, there have to be savings. How to save then? The original equation of saving is:

Income – Expenditure = Savings

Now, let us change the equation a little,

Income – Savings = Expenditure

As soon as income arrives from the source, set aside at least 25% as savings. The remaining can be used to fulfill your needs and necessities. But be cautious about spending. As Warren Buffet once said –

If you buy things that you don’t need soon, you will have to sell things that you do need.

Once we have the amount that we saved, we can start investing it. But you may be thinking that the meager amount that you saved may not be enough to invest. That is just a limiting belief.

You can invest in mutual funds with as little as Rs.500 a month. Choose a fund that fits your risk profile or take help from an adviser to start your wealth creation journey.

Mr. X invests Rs.500 for 20 years in mutual fund (Top large-cap fund). What will the investment amount to if he expects a total earning of 18%?

The total investment in 20 years will amount to Rs.1,20,000 and the total earnings from this will be Rs.11,71,744 and the total wealth gained will be Rs.10,51,744.

Another famous example is that of Warren Buffet:

At 11 years old, Warren bought his first stock. He purchased six shares of Cities Service preferred stock, three shares for himself, three for his sister, at a cost of $38 per share. The company’s stock falls to $27 but shortly climbs back to $40. He kept investing his savings systematically over the years. His net worth stands at over $85.6 billion as of December 2020, making him the world’s fourth-wealthiest person.

So, making investments is very important, the seed that you sow now will be fruitful in the future.

For more information on investments, check out our previous article and the rest of our website. We can help you achieve all your goals and dreams. Look us up and drop us an email if you are interested in what we have to offer you.

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