Thursday, May 23, 2013

Mom is so special

Motherly love is beyond comparison. There is a saying that - "God cannot be there for all of them. So, he created mom". There is a great truth in that. All the mothers in the world love their children and want to give whatever they want.

My mom is so special. She gave love, provided care and taught good and bad. She was really fun-loving and enjoys comedy a lot. She laughs and make others laugh with her words. She is a role-model in many ways. She gets up even before the sun rises and gets all the required things for us on time. She knows where things are in the house and helps everyone - from my father to my brother in getting their things.  She was kind and lived for us. There are no words to explain her love.

My mom is so special. When my father had Jaundice (Manjal Kamalai), my mom helped him to recover faster. During my campus interview days, I told, I am planning to move out of Chennai for my job. My mom immediately said "you need to move places far away as well, if required, to make money" and was helping me to make that decision faster. When my sister gave birth to her son, mom was there as a pillar of support. Even though my mom's uterus was removed during the same time, she was confident. Her great attitude helped her to recover faster. She helped my sister and her son all the day. 

My mom is so special. She encouraged everyone to bring the best out of any person. She managed to do this all the day. She believed that her younger son can become a banker and he is now. My father was really caring for my mom. They were really made for each other is an understatement.

I lost my mom due to heart-attack about a year back and I am still missing her. My mom is so special. I miss you, Mom.

Saturday, May 11, 2013

Get 3x more money by investing early

If you can live with 90% of your income, it is possible for you to make a choice of saving or investing for the remaining money. If you can't live with 90% of your income, you need to concentrate more on your career to increase the income. As a rule of thumb, it is better to live with 90% of your income. I mean, it is better to spend less than what you earn and its even more better if you can save at least 10% of your income. 

Once you make sure you are living within your means, the next step is to invest as little as you can. Saving just makes the money safe but won't grow the money beyond the inflation numbers. If you are investing, it grows your money and gives you better return. Please read Begin Investing for more information.

Why should one invest early?
Investing early gives more time for you to grow your money. 

Lets take a small example. John and Joe are childhood friends and of same age. They earn the same amount of money. John invests Rs. 20000 every year and gets 12% returns from the year 2013 till 2030.
Joe, after seeing his friend investing for ten years, thought he also needs to invest. Joe also invests Rs.20000 every year and gets the same 12% returns from the year 2023 till 2040. So, both of them, invested the same amount of money and got same returns for 17 years. What do you think is their returns on their investments on the year 2050.

At the end of year 2050, assuming that they are going to get the investments out now for their retirement/children's marriage/higher education. 
John gets more than Rs. 1 crore (Rs. 1,07,55,561/-) and Joe get only around Rs. 34 lakhs (Rs. 3463003/-).

Please note that John and Joe invested the same amount of money and got the same amount of returns. But the only thing John did is investing early. Also, they invested only for 17 years. Just by investing early, you can get 3 times more than the person investing late. 

So, its plain and simple. Invest the maximum that you can as early as possible. 

Please share your thoughts.