The average life span of a person in India is 70 years from which he or he works for around 35 years on an average beginning from 25 to 60 years. The 36 years of our life is the only timeframe in the coursework of which they actively earn funds. The necessity to save & investment is constantly haunting our mind throughout these 35 years of our life. The necessity to save is also accompanied by expenses in order to fulfill our different dreams & obligations. Phew that’s an elaborate plan, which they cannot escape.
In this article they will delve on various issues that obstruct our saving designs. First it is important to understand the technical issues that accompany investment & saving. Inflation is a curse that will always be a part of every financial set up. Inflation means depreciation of the worth of funds. As time progress the cost of production increases, which ends in a higher market retail cost & this demands higher earnings. If they can afford a specific entity for Rs 100 today, they may not be able to do the same few months or years down the line. As long as our earnings increase they will be able to afford cost hike of commodities, but what will happen to our savings, they keep increasing our savings but what additional value are they adding to it? That’s were banks & different financial service providers come to play. They save money in banks & various other financial institutions on which they give us interest. The additional value they get in the kind of interest help us to keep the worth of our savings intact. Sometime if the rate of interest is high the worth of our saving might also increase. But the issue under which they are currently reeling in India is that the rate of interest offered by banks & various other financial institutions is falling.
There was a phase when the rate of interest offered was as high as 14%, but today they have come down to as low as 7 or 8%. A major reason for this is that earlier corporate biggies in India could only borrow funds from the Indian financial institutions but today they are going abroad, since restrictions on foreign borrowings have weakened over the years. Investment in banks & other financial institution is still a viable option if it is completed under able guidance of investment intermediates.
Right financial Planning is an important means to a contented life. It makes you recognize your obligations well before they make their presence felt. It makes you aware about the financial instruments that are available & the risk return profile of each of them, apart from taxation laws & their benefits. Investments thus become an important earning member for your relatives. You are not slogging on a regular basis, but can also enjoy your wealth by letting investments & the return on them share your burden.
In this article they will delve on various issues that obstruct our saving designs. First it is important to understand the technical issues that accompany investment & saving. Inflation is a curse that will always be a part of every financial set up. Inflation means depreciation of the worth of funds. As time progress the cost of production increases, which ends in a higher market retail cost & this demands higher earnings. If they can afford a specific entity for Rs 100 today, they may not be able to do the same few months or years down the line. As long as our earnings increase they will be able to afford cost hike of commodities, but what will happen to our savings, they keep increasing our savings but what additional value are they adding to it? That’s were banks & different financial service providers come to play. They save money in banks & various other financial institutions on which they give us interest. The additional value they get in the kind of interest help us to keep the worth of our savings intact. Sometime if the rate of interest is high the worth of our saving might also increase. But the issue under which they are currently reeling in India is that the rate of interest offered by banks & various other financial institutions is falling.
There was a phase when the rate of interest offered was as high as 14%, but today they have come down to as low as 7 or 8%. A major reason for this is that earlier corporate biggies in India could only borrow funds from the Indian financial institutions but today they are going abroad, since restrictions on foreign borrowings have weakened over the years. Investment in banks & other financial institution is still a viable option if it is completed under able guidance of investment intermediates.
Right financial Planning is an important means to a contented life. It makes you recognize your obligations well before they make their presence felt. It makes you aware about the financial instruments that are available & the risk return profile of each of them, apart from taxation laws & their benefits. Investments thus become an important earning member for your relatives. You are not slogging on a regular basis, but can also enjoy your wealth by letting investments & the return on them share your burden.
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