“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Every people in the world earn money with moderate to high hardwork and dedication towards job especially if he/she serves to private and limited sectors also enterpnures get markable profit by putting efforts towards worked bussiness plan, creativity and new idaes to beat the competition.In short earning money is not quite simple without passive income there.
When you earn money periodically, every time some portion you expend on basic needs and liabilities like car, fashions, on hobbies etc. and you save the rest one.
Now what about saved money by hardworking? If you put it into locker, there is no interest you earn on the same and with the passage of time value of your money get decrease due to INFLATION there.
Let me explain you Inflation by example-assume current inflation rate in india is approx 6% pa ,that mean you will pay for a good or service Rs.106 after 1 year if current value of the same is Rs.100.
Now it is clear that you should earn atleast 6% interest to overcome the damn Inflation.
If you go through the financial instruments like banks FD, Recurring deposit, PPF, post office saving scheme, LIC, NPS etc. this all are low risk financial instrument no doubt but earned intesest seems to be low as maximum 7-8% most of the time and still you loose your valuable gain on capital into the inflation and there is very little gain after cutting inflation.
You shold be walk towards invest in stocks market to get higer rate of returns.Financial instruments offer by stock market gives you higer rates of return but it all depends on stock market condition.As stock market is higly volatile, you should select suitable risk level for your portfolio. You shold know figure(money) that required in futute for your different goles and base on that you should create your risk profile and invest to the different stock market product like STOCKS, BONDS, MUTUAL FUNDS etc.
This way you overcome the inflation and beyond that get markable return on your capital.
You can built large corpus with small regular investments into the stock market over long time.This happen due to the magic of compounding .According to Albert Einstein-
“Compounding interest is the 8th wonder of the world.Those who understand will become rich.Those who dont understand will remain poor”