There was a time when it was considered good to keep cash with you or in the bank for bad times.
But now if you are doing this then it is your foolishness because the bank is making you close and slowly stealing your money from you. You must have played the game of snakes and ladders in your childhood. In this game
Bank takes money from you and puts you down
The bank is everything that takes you back in the money game. You try to become rich by arranging your money doing extra work and climbing one step at a time but your bank takes money from you and puts you down.
You feel that by keeping money in the bank you are saving money for your future
but knowingly or unknowingly you are making such a mistake which if not now will
put you in trouble and you will not be able to save yourself from it.
To prevent this from happening to you in today's article I
will tell you how The bank is keeping you close and if you do not do anything
now, then how will you have to face inflation later? Let's start number one for
you should not keep your money in the bank.
Let me ask you a question. You keep money in the bank? Right
but have you ever thought why you do this? Then you will say to this question
that your money stays in the bank and increases but stop for a minute and think
carefully. Is it really so?
Pay attention when you keep your money deposited in the bank
If you pay attention when you keep your money deposited in
the bank that money definitely increases but in reality, its value decreases
due to the inflation. Whereas if you invest the same money in some other place then
you can earn more money from it and its purchasing power increases with time but
now the question arises that if the value of your money is not increasing by
keeping it then also why do you keep money?
So the answer to this is that it allows you to keep money in it. But you can see the policy of any bank. In every bank you will get an interest of 2.5 to 3 %. But if you look at the report of the same then the inflation rate in India is 7-8 percent which will increase with time.
In such a
situation think that the thing which you are getting now for 2000 the same
thing will be available to you for ₹ 2140 next year but the value of your money
lying in the same pack will be 2060.
Now you tell me by putting money in the bank are you doing
good to yourself or bad? Because inflation is increasing at its speed. You can
buy many things in ₹ 100 but now you do not even realize how ₹ 100 gets spent.
The bank makes super cash of your hard-earned money
The bank makes super cash of your hard-earned money. Now the
bank itself gives 9-15 percent less interest by lending that money to the bank.
But in return it does not even give you half the interest due to which your
purchasing power decreases.
For example, suppose you put ₹ 5,00,000 in the bank and after 1 year you say that it is worth 5,00,000. Because of this a cash worth Rs. 5,00,000 will become worth Rs. 7,00,000. But you will have Rs. 500000 in cash so where will the rest of the money come from?
You thought right that the money will come from the bank but look to get that money you will have to give it to the bank.
That means the police is giving the money to the thief for
safekeeping. He is earning money from this but we the middle-class people get
trapped.
Poor people focus only on the interest
Now it is possible that some of you may say that if we do not keep our money then how will we spend it because our money remains safe in the bank and we do not have to worry about money.
Maximum people among you may
be thinking the same, poor people focus only on the interest but they do not
pay attention that for this little interest the purchasing power of their money
is decreasing due to which the banks are becoming rich but the middle-class
people are not getting close.
most of them don't react and remain silent. Now the question is what should we do about it? Well the answer to which is the next point number two improve your cash flow.
Didn't you understand? Let me explain. Cash
flow means in-out movement of cash
i.e. movement of
money coming and going. When you work earn money then money comes to you. And
when you spend your money then your money goes from you. In our society there
are people of free category.
Rich people focus on money
Poor middle class and the flow of money keeps moving among these people only. Poor and middle-class people focus more on money. Whereas rich people focus on money. They think how they can earn more money.
This is
the thing that creates inequality of money among these people and why am I
saying this?
When middle class and poor people focus on the outlook of money, they ignore the fact that money is necessary for the outflow of money and if you have an income but your outlook is increasing.
So how do you manage your
expenses? If we talk about inflation, how will you cope with the rising
inflation? Now you will say obviously because in bad times no one is better
than them but in bad times if you have FD money it comes in handy.
If you think so then you are wrong. You can understand how it is with an example because Rohit and Murali Vicky also come from poor families. Rohit is from the middle class like us and the guy from Murali has a job.
He barely manages his monthly expenses he earns ₹30,000 a month. Although
Rohit earns more money than Vicky but more than half of his money goes in
paying EMI of house and car. After doing this and paying for his expenses he
gets the money deposited into FD which gives him barely 7 to 7.5%.
Now you must be thinking that Rohit is doing great.
Everything is going on as usual but wait. You haven't even seen Murali yet he
earns ₹30,000 a month he lives in his father's house and uses public transport
to go to office. Hence, he has no loan of any kind and neither does he have to
pay EMI.
So, he spends 60% of the money he earns on his day to day
expenses and invests the remaining 40% which gives him a return of 10-12% and
because of his decisions and outlook on money being together the value of his
money increases and his purchasing power also doesn't decrease because Murali
is making more money from his money.
Investing it in securities that give returns
Instead of keeping his money directly in the bank he is investing it in securities that give returns and when he is getting returns on his money the main capital keeps the returns in the bank with itself. This is of his FD.
So now you tell me if there is no shortage that who among these
three will survive well then it is Murali because among these three Murali had
focused more on his inflow than his outflow.
No one told me in real estate. I learned from my experience and used to teach people for a quarter. I focused on it. Now people with this mindset manage their cash flow in this way invest their money in the right place and create their own income.
Number three is like this it is better than
fax relay. People save money in State Bank because they trust the bank.
Investing your money strengthening your cash flow
So, if you do not keep your money in the bank. So, this is that for investing your money or for strengthening your cash flow you will find such a hit that will give you good returns in the future and the money will give results.
If you look at it real estate has been giving very good returns
since ancient times because land is the only thing whose price increases with
time instead of decreasing.
People have been investing in real estate since the time
when people did not even have the concept of it and the best thing is that by
investing in properties real estate your cash flow remains smooth because
whether it is your property or a building you can take it on board and enjoy
rental income.
Robert Kyosaki says that this is the thing to learn from his
rich dad. Money should always be invested in real estate because this is such a
mantra that you can follow today even after 1 year or after the many years but
real estate will never betray you in your bad times. Because in the future even
if inflation is high your rate will also increase.
Real Estate Investment Trust
Now not everyone has enough money to buy real estate and people do not want to invest so what should they do now? Well, its solution is REITS i.e. Real Estate Investment Trust. In this you will not need lakhs of rupees to invest in real estate.
You can start investing in REITS even with less money.
Now let me tell those who don't know. It is exactly like a mutual fund and
works like that. You and many investors like you invest money in REITS which
they invest in different properties.
The income they get from this they give it to their investors as dividend. But suppose your income is good then by giving a small loan you can invest in commercial property of real estate.
There is more income in commercial property so by investing money in it you can earn three times more than normal properties and also clear your loan. If you want to do just that then it is good for you because in this you will get a return of 10-15 percent and the best thing is that you can invest in properties with its help with a minimum of ₹ 10,000.
People have a misconception about stocks
Stocks are best compared to index funds but apart from this if there is anything that can give you a better return than before then it is the stock market.
Now I know that you must have moved away just by hearing the name
of stocks because people have a misconception about stocks. Some say that the
stock market is good some say that there is risk in it.
For some investing in index funds is the best option while
some think that investing in FDs is the best option. So that you do not get
confused in this thing now I will tell you with the help of an example that
which is the best among stocks index funds and FDs.
Ramesh, Ram and Raghu all three are friends and live in the same area. They have a habit of talking. They meet every evening at a tea stall and discuss their lives. Then after some time all three finish their college and get jobs in good companies.
Ramesh gets a job in an IT company with a salary of 1,00,000 while Ram gets a job of 50,000 in a financial firm. Raghu joins a marketing agency there where he gets Rs. 30-35000. Ramesh liked to take risks.
So, he invested 10% of his salary i.e. Rs. 10,000 in stocks. He did not
want to take any risk. Moreover, he was not able to save much money from his
salary.
So, he used his brain and started investing Rs. 5000 from his salary every month in index funds. Ramesh wanted to play smarter than ram. He saved a lot of money for a few months and after saving Rs. 5,00,000 he invested it in FD.
Due to looking after the family all three got busy in their
own lives and stopped meeting each other. This continued. After 30 years the
life of all three had changed a lot. Ramesh invested Rs. 10,000 in stock market
at 14% interest for 1 year.
So, in total he invested Rs. 1,20,000 in stocks and held his money for 20 years which gave him a total return of Rs. 1,32,00,000. Ram invested Rs. 6000 in a fund with which he invested a total of Rs. 72000 in 1 year but held it for 30 years which gave him Rs. 2,65,00,000 after 30 years at the rate of 13%.
Similarly, our smart guy who collected 5,00,000 at one go and
kept it in FD and held it for 10 years got 10,00,000 at the rate of 7%.
Now you can see clearly for yourself what happens at the end of keeping money in the bank if you too are earning ₹40,000 per month and saving it for the future then open your eyes or else I will take away your money.
You must have understood why you
should not be in the bank? Along with this you must have got an idea that if
you do not keep your money in the bank then where can you keep your money? tell
us by commenting.
