The Art of Saving by a Spendthrift – The Conclusion

Let me give you my own example here. I never saved enough in the first place to be able to accumulate wealth. As the saying goes ‘better late than never’, I started investing a good portion of my salary on a regular basis. The outcome will not be too profitable in the short-term, but, will surely be better than that of those interest rates for fixed deposits in the banks. The investment that I started is the commonest forms these days. The so-called Systematic Investment Plan (SIP). This one is for the risk-averse investors. The average return on investment will be 12 percent and upwards. There, of course, are lots of terms and conditions attached to it. Our life in itself is a big gamble and nothing pays off in life without risks. Bet yes, SIP is the safest bets and a decent way of saving your hard earned money. The basic investment that one makes is their savings and the interest accrued is referred as wealth.

Did you ever think of how would you cater to your needs once you retire? Now this one is targeting the ones working for private organizations. Government employees, on the contrary, have the luxury of handsome post retirement pensions. I see the stock market as the best way to save enough for one’s retirement. Not just the retirement aspect, it can have a positive impact on your normal course of life. However, we need to be smart enough to make investments those are for the long run (good 10 to 15 years).

The three basic principles that I follow is to look at the company’s balance sheet (liabilities, debts, and reserves), management, and its reputation in the market. The key is to anticipate the sustainability of a company considering the demand for its offerings. Let me give you a quick example here.

Pidilite Industries Limited (an Indian-based adhesives manufacturing company) has been dominating the market with its offerings and barely has any competition. Moreover, we expect this to continue for at least next ten years or so. I call such companies as safe bets with high returns in the long run. On the top of it, the dividends paid will act as your retirement pension. If this interests you, please start saving enough and investing. We can slowly, but surely start accumulating wealth to fulfill our needs. In addition to the example that I gave you above, also go through the details of companies like Colgate, Johnson & Johnson, and MRF to name a few.

We all know that most of us want quick money. None of us can deny this fact but it often happens to a lucky few, not that most of us do not work as hard as the others, they are those gifted ones, to say the least.

We get nothing more than or less than what we are destined to. But, during the course of our lives, all that will matter is the efforts we made to reach or goals or targets. Trust me, hard work, patience, loyalty, and discipline are the key to it.  

All that I have written is just a drop out of the ocean called ‘investment’. Hope you guys can take some motivation and try to soak in that drop to make a pond out of it at least. 

The bottom line is *All investments are subject to market risks*. Do not chase me down if you lose money since I do not operate these markets. Gifts are welcome of any kind though if you gain profits. 😛

Please remember one thing, nothing in this life is immortal and there is no guarantee of anything. Life is like those waves in the ocean and will have its ups and downs. We just need to be that opportunist to make the best of the upward trend.

Good luck and keep smiling. See you all soon with something more interesting…

About The Author


Vinay Shah

Vinay Shah

Always ready to make a friend and give a ride back home who is lost. Finance is his bible, and is a financial advisor to all his friends.

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