Basics Stock Markets

Marketopedia / Basics Stock Markets
Overview
The short answer is, Who doesn’t like to be rich? Before we answer the aforementioned query that question, let’s first consider the consequences of not investing. Let’s assume you make Rs. 60,000 per month and spend Rs. 30,000 on living expenses like accommodation, food, transportation, shopping, and healthcare. Your monthly surplus is the remaining amount of Rs. 30,000. Let’s not consider the impact of personal income tax for this example. Here are a few assumptions:
  1. You receive a 10% salary hike yearly.
  2. The cost of living is anticipated to increase by 8% annually.
  3. Let’s assume you’re 35 and you require a lump sum at the age of 50. You still have 15 years to earn.
  4. Your costs are predetermined, and no further costs are anticipated.
  5. The remaining amount of Rs. 30,000 per month is kept as hard cash.
If we apply these assumptions, here’s the cash balance in 15 years: