Consider EQUITY To Be Your Third Child

You will understand this better if you are a parent. Parents will do anything for their children's education and upbringing. They sacrifice everything to make sure their kids have the finest lives possible. For the sake of their children's hopeful future, parents are sacrificing their needs. When parents are not working, there is hope that their kids will take care of them. I don't know if a child will take care of themselves or not, but if you want to be independent when you retire, plan on having one more child.

The majority of households have two kids. You should count it as three if you have two. The third is called EQUITY. You must be wondering how we can take care of a third one if we can't afford to take care of two. Consider that you have three kids.

The amount of money parents spend on their children's schooling, extracurricular activities, weddings, etc., is sufficient. About 25 years are needed for this. If you have two children, you may assume you have three. Spend the same monthly money on one child as you do on an equities fund. Repeat for a further 25 years. Whether your real children take care of you or not after 25 years, this third child will take excellent care of you for the rest of your life.

You're probably wondering: Why equity? Why is investing in equity regarded as a low-risk, high-return strategy? You should ask this question, it is nice. Prior to engaging in equity, it is wise to thoroughly understand it.

Let's analyse a straightforward query. What is generally your primary source of income? If you are employed, your salary will be your source of monthly money. Other income from investments or rent if you own real estate that is rented. You make money from your business if you run one.

Who now makes more money is a new question. paid a salary or a businessman? Yes, of course! Businessmen. There are no salaried individuals on the list of the richest people in the world. How do these businesspeople make money? Consider this. In order to operate a business, you must cover costs such as the employee's wage, office rent, loan repayments, power, and other expenses. What businessmen get after conquering all of these challenges is a profit. Additionally, this profit fluctuates every month. Although there are good and bad months, on average, a business makes more money.

The point is that running a business can help you become wealthy. Nothing but a business is equity. A group of these operating enterprises is an equity fund. The business has its ups and downs, including equity. Similar to how you can lose money in your firm, equity funds can also lose money occasionally.

Even if you choose not to manage a business, you can still make money by investing in equity funds that do so. You get higher returns from equity funds than from fixed deposits.

Let's use the scenario where someone starts working at age 25 and retires, say, at age 65. To save for your retirement, you have 40 years. Let's say you save $1 annually in fixed deposits that pay you 7.2% interest. It will take ten years for your money to double. Thus, after 40 years, you will have 16 dollars. However, if you invest the same $1 into equity, which yields 14.4% returns, your money will double in value within five years. Therefore, after 40 years, you will have 256. Major difference

This easy Maths will get you to consider where to put your money. Treat your third child equally, take good care of it, groom it, and it will take good care of you. After all, pleasure and freedom may be purchased with money.

-Kain