Investment Over Investment Returns

The most fundamental aspect that impacts wealth creation and is ignored by a majority of individuals is the investment amount. Undoubtedly, return is a crucial factor but if you desire to create a huge corpus you have to invest a huge corpus over period of time

The adventurous year 2021 has come to an end and hitherto we have welcomed the year 2022 with joy and zeal. Consequently, continuing with the same enthusiasm you should kick-start this year by thinking, planning and implementing your financial plan in order to serve various financial commitments in a better manner which you might come across in your near as well as long future. People are getting aware about the fact that an individual must save some percentage of their income which they can utilise to fulfill their future obligations. In today’s rising inflation world, is it sufficient to just save your income? Obviously, no! You cannot create wealth by just saving since with time inflation will eat up the value of your savings.

Hence, with the aim to create wealth you should invest your money in investment instruments which can deliver inflation-beating returns. Now another question might pop up in your mind: what is the difference between saving and investing? Many of you assume that what you are saving is investment. But that is not the case. There is a lot of difference between investing and saving and the major one lies in how much risk you are ready to take. Saving is the process of setting some portion of your income aside for future spending by parking it in bank accounts. Investing is the process of utilising your funds or money to purchase assets that create value over a period of time and deliver higher returns in exchange for taking higher risk.