UNDERSTANDING THE IMPORTANCE OF INVESTING

INVESTING is an absolute necessity - I would call it part of the 5th R-Money! It is also scary! Imagine it is at a cross of politics, mathematics, emotions, markets, salesmen, and your own future.

- PV SUBRAMANYAM

For a non-investor it is unavoidable and scary.

How can a person explain investing to a person who is scared about investing? Simply by giving examples of our day to day living.

Tell a housewife that if she can plan and run a house, she can look after the house's portfolio too Tell a man if he is doing 'costing and budgeting' for his employer, he can do the same thing for his family too.

Tell the family that building a financial plan is like building a bridge - you should assume that there will be overloading and likewise some excess capacity has to be provided for.

Compound interest is like buying mango and using the seed to start a mango farm.