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Don't get into the trap of investment as soon as you get a job, do this work for 5 years, instead of ₹ 15 lakh, you will be able to create a corpus of up to ₹ 1.5 crore!


It is true that the sooner you start investing, the higher returns you will get due to compounding. But this is good only for those people who can invest large amounts.

You must have often heard people saying that the sooner you start investing, the higher the returns you will get. When someone gets a job at the age of 22-23, the first thing he is advised to do is to start investing immediately, even if it is small. It is true that the sooner you start investing, the higher returns you will get due to compounding. But this is good only for those people who can invest large amounts. If people making small investments think this, they will not be able to earn huge returns. Let us understand how.

Suppose at the age of 22-23 you get a job with a salary of around Rs 25 thousand. Now if you can invest at least Rs 10-15 thousand every month, then you will understand the benefit of compounding, otherwise, your investment will not benefit you. In cities like Delhi-NCR, a person spends up to Rs 20-25 thousand on house rent, food, commuting to the office clothes, etc. This means that even if you can save with such a low salary, you will hardly be able to invest only Rs 1-2 thousand every month. Even if you reduce your expenses a lot, it is still very difficult to save more than Rs 5 thousand.

How much return will you get in 5 years?

If you invest Rs 5,000 every month and increase it at the rate of 10 percent every year, then in 5 years you will create a corpus of Rs 4,67,755. Your total investment in this will be ₹ 3,66,306 and you will get interest of ₹ 1,01,449 on it. If this happens then you will get returns at the rate of 10 percent, whereas FDG rates in many banks are not more than 7-8 percent. If you invest at this rate for 10 years, you will accumulate a corpus of ₹ 15,22,926.

So what to do in the first 5 years of your career?

In the first 5 years of your career, instead of investing your money, you should invest it in yourself. Learn a new skill by saving the money you were planning to invest. Make every possible effort to see how you can increase your salary 4-5 times or even more. You should not only focus on learning new skills but also spend money on traveling. In this era of startups, you would often see that people saw a problem and found a solution to it and started a startup. So instead of investing the money in some scheme for the first few years, invest it in yourself and increase your value.

Rs 1.5 crore will be deposited

Suppose you learn some skills with the money you invest for 5 years and based on that you succeed in increasing your salary by 3-4 times, which is not a big deal. In such a situation, your salary which was earlier Rs 25 thousand, can now increase up to 4 times to Rs 1 lakh. Now even if after 5 years your expenses increase from Rs 20 thousand per month to Rs 50 thousand per month, you will still have about Rs 50 thousand left. In this way, if you invest Rs 50 thousand for the next 5 years and increase it by 10% every month, then you can accumulate up to Rs 1.52 crore.

Now compare once

If you had been investing Rs 5,000 every month since the beginning of your career and increasing it by 10% every year, then you would have accumulated a corpus of around Rs 15 lakh in 10 years. Provided that you get an average return of 10 percent every year. On the other hand, if you invest in yourself for 5 years and start investing by 4 times your salary, then in just 5 years you can make your corpus up to Rs 1.5 crore, i.e. 10 times more. So in the initial phase of your career, do not invest for the future, invest in yourself, so that you can improve your future.

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