Things Lord Ganesh teaches us about Wealth Creation

o   Big Eyes:- To look beyond today’s needs & plan for the future

An investment is all about future. One needs to plan today so as to meet commitments arising in future. A typical working person will have all or some of the goals in life as under:-

1.       Buying  a home

2.       Children education

3.       Vacation with family

4.       Buying a car

5.       Children marriage

6.       Retirement

A person has a finite working life during which not only has he got to provide for current expenses, but also accumulate funds to meet future liabilities as stated above.

o   Big Head:- To plan big goals in life

Inflation raises the cost of the goal with every passing year.

For example The Fees and other charges payable by the PGP students of the 2015-2017 batch for their first academic year is approximately Rs.8,88,000/-. (IIMA)

Assuming there is no cost escalation for next 10 years; Mr. Sundar will have to accumulate a sum of Rs.23 lacs for his son who wants to pursue MBA. (Sectoral Inflation assumed 10%). This is just for the higher education of his son. His daughter wants to pursue medicine and will be seeking admission in next 12 years.

Then there are other goals also which also needs to be provided for.

o   Large ears:- To listen & act on professional expertise

Remember these are YOUR goals---set by yourself. You and only you are responsible for its achievement. Take professional help(Read:-Free advise can be costly).  Professionals like a financial planner are experts that can help you in working with your goals—taking into account your income, expenses & savings. They can help you by drawing up a financial plan for yourself which will tell you whether these goals are achievable or not. If not, they will also suggest remedial measures. Remember, fees that you pay will only be a fraction of what you will achieve—financially. 

o   Broken tusk:- Monthly sacrifice needed for pursuit of wealth

A small financial sacrifice made today can ago a long way to meet your goal.

Mr. Sundar eats out on Sundays with family with average monthly billing of Rs.10,000/- approximately. If instead Mr. Sundar eats out only twice and manages to save say Rs. 5,000/-, it can go a long way in meeting education expenses of his son. If he invests this saving of Rs. 5,000/- by way of SIP for next 10 years, he can accumulate a sum of Rs. 13.75 lacs (assuming a return of 15%)

o   The axe:- To Cut off portion of your income to save regularly

Today’s pain is tomorrow’s gain they say. Warren Buffet says-“spend what is left after saving, rather than save what is left after spending.” START AN SIP TODAY.(Read--yahi hai right way) SIP is the best vehicle to create wealth. Compounding works best through SIP. A monthly SIP of Rs. 10,000 can yield a corpus of Rs. 3.20 crores over 25 years (returns of 15%CAGR).

o   Large stomach:- To compound your investment & grow your wealth

Albert Einstein has described compounding as the 8^th.  wonder of the world. Compounding works best over long term. For example an SIP of Rs. 10,000 in DSP BR TOP 100 Equity fund since April 2003(a month after its inception) would have yielded a corpus of Rs. 47.30 lacs(against an investment of Rs. 15.10 lacs)---an annualized return of 16.99%.