We all work hard to earn money, but are we making our money also to work hard so that we achieve our life’s goals?
Yes! Money also must be made to work hard to produce the desired results for money, if kept idle doesn’t grow or multiply.
In order to make your money work properly, it is imperative that we first identify our life’s goals- Short term Medium term and the Long term, so that this exercise of goal setting enables us to “SEE” the target first so that we can then take the necessary action. This exercise is IMPERATIVE for the simple reason that how can we hit a target if we cannot see it in the first place.
It is our responsibility at Wealth Nest to help you first systematically identify your goals and then to help you systematically and clinically achieve your goals.
Coming to the question of How money works, it would certainly be very enlightening to read the following short story.
There was once a poet who fell upon such hard times that he was no longer able to feed his family. Hearing that the king greatly encouraged talent and was famed for his generousity, the poet set off for the Royal Palace. When brought before the king, he bowed low and asked that he may recite a poem. On hearing his recitation, the king, well pleased, asked him to name his reward.
The poet, pointing to a finely wrought chess board before the king said "Your highness, if you place just one grain of rice on the first square of this chess board, and double it for every square, I will consider myself well rewarded." "Are you Sure?" asked the king, greatly surprised. "Just grains of rice, not gold?" "Yes, your highness" affirmed the humble poet.
"So it shall be" ordered the king and his courtiers started placing the grains on the chess board. One grain on the first square, 2 on the second,4 on the third, 8 on the fourth and so on. By the time they came to the 10th square they had to place 512 grains of rice. The number swelled to 5,24,288 grains on the 20th square. when they came to the half way mark, the 32nd square, the grain count was 214,74,83,648- that is over 214 crores! Soon the count increased to lakhs of crores and eventually the hapless king had to hand over his entire kingdom to the clever poet. And it all began with just one grain of rice!
Moral of the story
Never underestimate the power of compounding. If you stay invested long enough, it'll work for you.
A small sum invested every month from the beginning of your work-life can lead to a very impressive amount at the time of your retirement.