People are spending-oriented. Even before they get their salary, they are thinking about how to spend it. If they have any money left, they call it “saving” which they invest in the most atrocious manner, says Mr Anand Mohan Agarwal, CEO of Samvardhan.
This is the reason why I feel people are caught up in the vicious spirals of scarcity, where-in they are experiencing shortage of time, money, love and just about everything in life, he said while delivering the BL Club Lecture at the Siva Sivani Institute of Management here. The event was sponsored by Tata Photon Plus.
To escape from these vicious circles and enter the ever-growing virtuous spirals of abundance and growth, they should learn to save their hard earned money and invest it in the most efficient manner to create multi-generational wealth, he added.
Offering some tips to the students, he said it would be wise to save 25 per cent of one's salary and invest it wisely. Spend the balance. Use a budget planner to keep track of your expenses, he advised them.
Why not delay buying your bike?. Use the company provided transport or public transport for the first few years of your career if you are having a desk job from 9 to 5.
Don't be in a hurry to take a bike loan. Accumulate money to buy a bike and buy a plot of land in a remote area. Further, it is best to accumulate money to buy a car, educate children, get them married, buy a house, plan for annual vacations and retirement.
Invest in avenues where you get some positive return after tax and inflation, he said.
Mindset change
Listing some more suggestions and calling for a mindset change, Mr Mohan said it is possible that a 23-year-old person, launching their career with a starting take-home salary of Rs 20,000 per month, could live a very decent tension free life and accumulate assets worth Rs 39 crore by the time they retire at age 58.
Others may struggle to accumulate assets worth Rs 1.50 crore and live a life full of tensions and worries.
soma@thehindu.co.in