Wednesday, February 17, 2010
What will you do with unexpected windfall of money?
Let's assume you had a windfall, or may be someone gifted you Rs. 10,000. Now, what would you do with the money?
One option is that you can spend that money on wants/needs. How about new dress, new movie, nice dinner?
Other option is that you can save it for future. Save it somewhere in your house so that it can be used when you are out of cash.
And one more option would be to invest it for future. This money came unexpectedly after all, so today's life can run smoothly without same but it might help in future. So, let it grow for future. Now, if you decide to invest it for future, again there are two options to decide which bucket of investment:
1) Safe Investment - You do not mind if the returns of your investment are less, you anyhow don't want to lose money. For example a Fixed Deposit.
2) Risky Investment - You are ready to take little risk with the money in lieu of possibility of higher returns. After all, this Rs 10,000 was never there to start with.
If this happens to you, what will you choose?
None of the approaches is wrong; it just shows your outlook towards money.