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What is "Making Money More Productive"?

“Out of the money you are earning today, how much is indeed earned by you how much by your money?!”

You get tired and one day get retired from earning money, money will never! We believe, one should have the scenario depicted in the graphic beside

Making that happen is “Making Money More Productive”

Most of the time it is seen that many people earn more than enough, but due to irrational and inappropriate management, chunk of the money gets wasted. As a result by the end of their earning tenure, they will have just enough (sometimes insufficient) money to live rest of their life in a confined and perhaps compromised way.

For example, a person earning a very handsome salary (more than 3 times of his current monthly expenses or more) would choose wrong products to save for his long term goal, say, retirement planning. So his money won't earn good enough returns that it is potential of. So, even after contributing excessively to such investments, by the time he retires he will have barely enough corpus for his retired life. This corpus perhaps be just sufficient for his simple retired life.  Well, that's not bad but it should have been a big lot better!

Had he been managing his money wisely from the beginning he would have had more resources to do all that he loved to do and not be confined to a "LIMITED" life style.
One more important thing that people seem to under estimate is the compounding effect of inflation. Most of the high earning youngsters do not think or believe that when they retire, they would need more than double their current salary as pension to lead very simple lifestyle. In our country Govt. has  hardly made anything for social security of the senior citizens. We have to do it on our own for the rainy days. Hence, if money is not made more productive, there is a high chance that they will have to struggle for good living in their old age.

When money is invested well and made to work smartly, gradually thanks to the power of compounding it snowballs into a big corpus / wealth that the amount of cash flows / income generated by such corpus will be higher than the big, fat salary / income one would be earning just  before retirement. If that is the case one would not regret losing the income because of retirement.

The graph in the picture below makes it more clear.


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