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Stay Lazy and You Can Get Rich
Do your family members and friends often call you "lazy"? Do most repairs in your home take months to get fixed? Does the smile in the ever-smiling bank guy vanish when he deals with your requests like updating your passbook once a year? Do you often discover things you thought you lost when you have no choice but clean up your home expecting guests? If the answer to such questions is a yes, then congratulations! You have almost everything it takes to get rich.
No, we are not joking. You can be ridiculously lazy and yet get rich. All you need is a simple plan. Allow us to explain.
Why banking on luck to get rich is not cool
You can do nothing and bank on getting lucky to get rich. It could be winning a lottery, marrying into money, get adopted by a billionaire uncle and so on. While all these may sound quite romantic, they are hardly fail-safe options. And then, why work hard when then there is a simple plan that could help you to get rich without breaking into a sweat? So, what is this simple plan?
Your money, not you, should work hard
To become rich with your own money, it's not you, but your money, that needs to work hard. A simple plan called systematic investment plan (SIP) offered by mutual funds can do that.
SIPs allow you to invest fixed amount of money every month in mutual funds. If you invest in equity mutual funds or, mutual funds that provide typically high growth thanks to investments in equities, you can save astonishingly large amounts over long periods.
Crorepati, the lazy way
If you invest Rs 14,000 every month for the next twenty years and the investments grow at 10 per cent, you end up saving Rs 1 crore. That's right! You can be a crorepati and that too without sweating it out. All you have to do is to just stay invested.
True, there will be upheavals in equity markets in the interim which will make the value of your investments fluctuate. But here, your laziness will help. Since you will not bother to check out the status of your investments like the junk accumulated in the your car's boot, you will end up doing what's required to get high growthâ€”stay invested.
The fixed investment amount of SIPs will buy more units when markets and price of units are down. The reverse will happen when the markets are up. As a result, on an average, you will end up buying units at a reasonably low cost and can potentially make handsome gains over long periods.
People will tell you of fables like the "Ant and the Grasshopper" and recite Sanskrit shlokas to tell you why it is important to actively manage your life, especially finances. Don't change if you don't want to. In the end, you still get to win thanks to the "easy plan for the lazy man".
Similarly, you may have multiple dreams and each dream requires its own plan! One plan may not fit all, Isiliye, Jitne Sapne, Utne SIP.
Disclaimer:Past Performance may or may not be sustained in future. The calculation, based on assumed rate of returns, is meant for illustrative purposes only. SIPs does not guarantee or assure any protection against loses in declining market condition. In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax advisor. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.