DISCOVER THE SECRET TO BEING WEALTHY
Posted By: Admin
I was out to meet a customer last week and while discussing he mentioned that he had received some funds amounting to Rs 25 lakhs as an advance for a sale of property. This is likely to happen in a month’s time. I enquired with him what he was doing with the money until then. That is when he mentioned that since the period was only a month, he chose to leave it in a savings account (earning 4 % per annum) with TDS deduction, as compared to parking in liquid funds (getting about 6.50% per annum) with similar liquidity.
I was clearly puzzled. Here was a potentially higher interest, with apparently no greater effort and not for the lack of knowing it (as we already do liquid fund parking for his corporate cash), yet when I pressed him differently as to what would have made him do the liquid funds, he mentioned that 6.50% per annum did not excite him enough to do the change, while an 11-12 % may have been exciting.However we all know that abnormally High returns are a myth. As, even if it did appear, it would be short-lived since there would be near unlimited demand for the same. Yet we go on chasing high returns and pundits who promise these high returns are often worshiped or revered, while wasting a lot of opportunities to get low but consistent returns.
In my humble opinion, CONSISTENTLY EARNING MODERATE RETURNS BEATS OCCASIONALLY EARNING HIGH RETURNS and not being efficient with money the rest of the time. One will grow RICH as long as one lives life within ones means and consistently working to ensure all the money is earning some return all the time.
Be it a Private Equity Investment or the humble fixed deposit, make sure all your moneys are constantly sweating. There you will discover the secret to being wealthy.
Category Finsherpa | Tags Financial Freedom
