Investment is nothing but Planting a Sapling

One of my blog reader, wanted me to put the Rational & Significance of Investment for an Individual, in simple words.

My Mind gave me an analogy of the mother Nature, to derive a food for thought, for each one of us.

Most of the times, once we are starting our earning lives, 1st & foremost thought which comes to our mind is:

Let’s enjoy… That Enjoyment comes to us, in form of being extensively spendthrift ,spending in various forms of Liabilities in Balance Sheets terminology, such as Purchasing Latest Gadgets, Going for Loans or Revolving Credit by using Credit Cards & ending up Paying Interest/EMI’s, rather than Creating Financial Assets (Investments)…

Investment is the last thing that comes to the mind of this individual.

Now coming back to mother Nature:

Once, we sow a Sapling, it takes its own due course of time, along with our periodic care (watering, putting fertilizers,pest control & weeding out the waste), to finally become a tree, which would one day give us shade to lie down & relax .

Same is the case with Investments. We need to develop habit of patience, here as well & take periodic review of our Investments & let them flourish over a longer duration of time & let the magic of Compounding play its significant role.

It will provide us a cushion or shade to us in those days, when we will be not able to generate Active Cash Flows for us (Retirement) & we can live our own lifestyle, without making any compromises.

This reminds me an apt Quote in context from Warren Buffet: “Someone’s sitting in the shade today because someone planted a tree long time ago.” So plant your seeds (investments), give it some time and let the power of compounding show its magic.

One of the Famous & Widely used Methodology to achieve this is SIP, which we come across very frequently to gain from the benefits of Rupee Cost Averaging, without timing the Market.

SIP = SMALL IN PLENTY

Watering the Investments Slowly & Gradually

Start Planting your Saplings (Investments), at the earliest, to get the maximum benefits in the longer run.

Hope this helps.