Sunday, March 14, 2010

Save for Yourself

Lot's of people buy lotteries in order to get rich quickly. Lotteries are so addictive that I remember how Delhi Government put a ban on it.

People who buy lottery tickets want to use small sum of the money to get rich quickly. Well I am not sure of what will be the odds to get rich that way, but I know one sure way which will give you some wealth in long run. It's called power of compounding.

Let's say a lottery tickets is for Rs. 100 and you buy lottery ticket every week. At the age of 20, if you start saving and investing this Rs. 100 in some recurring deposit or mutual funds or stocks, then over the long period of time it may yield much better secure returns.

For example of savings give 9% of return, then this savings will become Rs. 59430 in 30 years.

So, don't save to make others rich rather save with discipline to build wealth for you.

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