"Yes I got a job now I'll soon settle and fulfill all my dreams. First of all, I'll buy a car, then a house, later on, we'll go for a long vacation. Do you think it's all easy? Maybe if we go for proper planning for our future goals then it's achievable, But wait what to do for achieving this. Again a question arises "My salary is only a piece of cake and my goals is a full apple pie" Yeah it is a tough job to accomplish them all in a short span of time, But yes this all can be done over a period of time, As of now I am only 26 will focus to get them done by the time I get settled in my life."
This may be the story of every young boy or girl who got a new job and started planning to get the thing done as soon as possible.
A famous quote of Warren Buffet:-
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful"
An average earning person spends almost 35 years approx by the age he/she retires by the age of 60 till the time he faces many obstacles while in his/her earning span. And at the phase of time, we always plan to allocate our sum in that manner from where we get a good return for our whole life.
As Warren Buffet said "Never depend on one earning" so we should focus on various sources from which we can get an additional earning.
For creating an additional source, one should make sure about the future outlook, what is the major objective and yes how it can be achieved, That's the time when everyone starts saving for their future.
Let's assume the monthly earning of Mr X is Rs 50000/- an individual (age 26) going to get settled after 2 years so how he decided his ideal portfolio where he decided to park approx 30% of his monthly salary in various instruments.
Most Common Investment Instruments for Salaried Individuals
So let's have a look:
The first and the most common instrument one selects is SIP, yes Systematic Investment Plan, An individual can park a handsome sum in a simple installment manner where his pocket won't feel the pressure. One can plan to have 4 to 5 Sip's for his/ her financial goal, this will always be beneficial in long run. And even the most important benefit you get is the rupee cost averaging.
The Second important instrument is an equity investment, one of the most favorable instruments for "High risk & High return" at a young age the risk capacity is more so investment made inequities can be done for a better return. What all we earn is always less as compared to our needs & wants. With the help of equity investment, one can achieve them, though the risk is higher in this instrument.
Life is full of uncertainties. We often face many situations where we need extra monetary support for all such things one should take an Insurance Policy, to secure ourselves and even our family members. Insurance can be any maybe Health Insurance, General Insurance etc., this can't be compared as an investment instrument but yes it's an important part of our portfolio for the future benefits.
Last but not least it's not necessary we get a good return from equity, Debt instruments should be on our list so that at the time we can have a fixed return in our pocket too. Sometimes when risk-taking capacity declines, we may switch our savings in those instruments where returns are fixed so that in the time of crisis or any pandemic situation we will not be affected by it.
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