<p>With the onset of Diwali, everyone is busy cleaning the house, decorating it with lights and preparing delicacies. This is also the time for financial planning. As you prepare to welcome Goddess Lakshmi and invoke her blessings, you need to work on your investment portfolio too. With foresight and planning, you can achieve your financial goals for the coming year.</p>.<p><strong>Create a nest egg</strong></p>.<p>To become prosperous you need money. Once you have created a corpus or nest egg the money can be invested to earn more money. Building a nest egg takes time and work, but it’s not complicated. All it takes is harnessing two most powerful wealth-building tools - your income and power of compounding growth.</p>.<p>The first key to building a nest egg is simple. You have to actually save money. If you never set aside any money for your future, you cannot use the power of compounding to make your nest egg grow. Setting aside a part of your income for the future is tough, especially when your budget is already stretched thin. But it can be done. One usually saves what is left over after all expenses every month. What if you flip the statement and save on the first of the month a predetermined amount and spend what is left? Yes, it will be tough in the beginning but it will get easier as your nest egg grows.</p>.<p><strong>Harness power of compounding</strong></p>.<p>Time is your best friend. The longer you save, the more you can earn on your savings. Similarly, the earlier you start investing, the longer time your money has to grow. This is known as power of compounding growth, a powerful tool which can help you on your path to prosperity.</p>.<p>Saving and investing should ideally start from your first pay-check. By time you retire, say in 35 years, you would have created a sizable nest egg from your savings and interest or dividends earned from investing it in shares or fixed deposits. Interest income and dividends can be your second income, reducing the pressure on your salary.</p>.<p><strong>Investing right</strong></p>.<p>Creating a nest egg is the first step towards prosperity. It is equally important to invest it right. A few decades ago, the only options to put your saved up money in were either property or gold.</p>.<p>Today, you have many more options to park your hard-earned money. Financial assets like stocks, bonds, fixed deposits and mutual funds have proliferated, giving you many more avenues to invest in.</p>.<p>With so many choices how do we choose where to invest? It is a difficult question. Investing decisions have to be made with careful consideration. Each choice comes with its own risk. The returns or rewards are commensurate with the risk you take. In case of some investments, you have to set aside your corpus for a long time to get handsome rewards. In some, you can invest for shorter durations and get smaller returns. Some choices like stocks, if not chosen well, can erode your nest egg while choosing the right one can multiply it. Hence, take care to take the right decision.</p>.<p><strong>Mutual funds</strong></p>.<p>They are a safe way to invest as there are professionals who manage them. Choose the correct fund based on rankings given in newspapers and your own analysis.</p>.<p>Your path to prosperity depends on some concrete efforts from you. Do not underestimate the power of time - start today on the road to wealth and happiness.</p>
<p>With the onset of Diwali, everyone is busy cleaning the house, decorating it with lights and preparing delicacies. This is also the time for financial planning. As you prepare to welcome Goddess Lakshmi and invoke her blessings, you need to work on your investment portfolio too. With foresight and planning, you can achieve your financial goals for the coming year.</p>.<p><strong>Create a nest egg</strong></p>.<p>To become prosperous you need money. Once you have created a corpus or nest egg the money can be invested to earn more money. Building a nest egg takes time and work, but it’s not complicated. All it takes is harnessing two most powerful wealth-building tools - your income and power of compounding growth.</p>.<p>The first key to building a nest egg is simple. You have to actually save money. If you never set aside any money for your future, you cannot use the power of compounding to make your nest egg grow. Setting aside a part of your income for the future is tough, especially when your budget is already stretched thin. But it can be done. One usually saves what is left over after all expenses every month. What if you flip the statement and save on the first of the month a predetermined amount and spend what is left? Yes, it will be tough in the beginning but it will get easier as your nest egg grows.</p>.<p><strong>Harness power of compounding</strong></p>.<p>Time is your best friend. The longer you save, the more you can earn on your savings. Similarly, the earlier you start investing, the longer time your money has to grow. This is known as power of compounding growth, a powerful tool which can help you on your path to prosperity.</p>.<p>Saving and investing should ideally start from your first pay-check. By time you retire, say in 35 years, you would have created a sizable nest egg from your savings and interest or dividends earned from investing it in shares or fixed deposits. Interest income and dividends can be your second income, reducing the pressure on your salary.</p>.<p><strong>Investing right</strong></p>.<p>Creating a nest egg is the first step towards prosperity. It is equally important to invest it right. A few decades ago, the only options to put your saved up money in were either property or gold.</p>.<p>Today, you have many more options to park your hard-earned money. Financial assets like stocks, bonds, fixed deposits and mutual funds have proliferated, giving you many more avenues to invest in.</p>.<p>With so many choices how do we choose where to invest? It is a difficult question. Investing decisions have to be made with careful consideration. Each choice comes with its own risk. The returns or rewards are commensurate with the risk you take. In case of some investments, you have to set aside your corpus for a long time to get handsome rewards. In some, you can invest for shorter durations and get smaller returns. Some choices like stocks, if not chosen well, can erode your nest egg while choosing the right one can multiply it. Hence, take care to take the right decision.</p>.<p><strong>Mutual funds</strong></p>.<p>They are a safe way to invest as there are professionals who manage them. Choose the correct fund based on rankings given in newspapers and your own analysis.</p>.<p>Your path to prosperity depends on some concrete efforts from you. Do not underestimate the power of time - start today on the road to wealth and happiness.</p>
