A small thread on personal finance (my real life experience)

#personalfinance
#investing
#compounding
#Savings

Back in 2007, I was a fresher and had started my career a year ago.

I got a call from HDFC Life sales person for a unit linked Pension plan in Feb.

I was novice in investing then but still I decided to buy a unit linked Pension plan to secure a pension in my retirement years with a meagre amount of 1500 per month.

It's been 14 years, I have been paying premium till March last month.

It has accumulated corpus of more than 5 lakh (more than 100% returns).

I redeemed it this month, to invest it in better long term instruments.

Point I wish to make here is:

1. Being a novice, I bought this plan out of some sheer good coincidence (if I hadn't got a call, I wouldn't have)

2. A mere amount of 1500/month, which generally gets spent in couple of multiplex movie tickets or a visit to a fine dine restaurant.

3. I would not have felt any difference, if this 1500 was spent in vanities mentioned above. Neither I felt any difference, when it was deducted from my savings month after month. Being a small amount, I continued it.

4. Now when I look at the corpus, which has accumulated over 14 years with compounding interest, it looks huge.

That's the power of investing for long term, even if starting with a small amount. I wasn't taught this in college, I wish I was.

Time is also an investment resource along with monthly savings. 35 years is huge time investment, considering one starts as early as early 20s.

Youngsters must start investing some amount from their salary every month. The corpus on retirement will be nothing short of miracle.

I learnt it through real life experience.

*End of thread*