Wednesday, September 06, 2017

How to plan for a good life?

After completing education everybody wants to earn money. Some enter into business while many look for jobs. Sooner or later everybody finds a job. This is not the end of your life story because once you start earning you start spending. Many times in life, this earning and spending practice faces hurdles when you plan to change your job or come to a situation of sudden joblessness. The question arises that one cannot control this hurdle of life because it can happen with anybody but there must be a way to make arrangement to handle such hard time in life.

Here is the secret. Between your earning and expenditure there is one practice required to be entered and that is INVESTMENT. You can save a part of your income on regular basis but keeping it in saving bank account does not get you much gain because banks can only give you coverage to inflation.

There is another way to make good use of your small and regular savings. It is Investment in public companies. In other words it is known as STOCK MARKET INVESTMENT. Big companies are started with public money. Companies issue shares and get money from people who are called small or big investors. Over a period of time when a company performs well and makes good profit, the value of share in the account books of company increases. Due to this profit making ability of the company many investors take interest in that particular company. The share of a good company is bought and sold everyday on the stock exchanges like NSE or BSE and over few weeks, months and years the share price of a company can increase in multiples.

Here is an example share price of KRBL Ltd. company on 13.05.2013 was Rs. 24.00 and on 05.09.2017 it reached to Rs. 492.30, it means investment of Rs. 1,000 became Rs. 19,510.00 almost 20 times in 4 and half year. There is another example of Venky's (India) Limited. The share price of Venky's on 30.10.2016 was Rs. 524.45 and on 10.07.2017 it reached to Rs. 2,550.00, a gain of 386% in less than a year of period. There are many other such companies whose share price has given a reasonable to very good profit to their investors.

Hope now you understand how to use your small savings in a better way to convert your future into a good life. Through regular investments, patience and timely updated knowledge you can control risk and improve your profitability.

Your comments are most welcome and spreading this message among your friends can be an interesting and helpful initiative for those who find hard to make their future better with little money.

Good luck to all of you,

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