2. What is Investment? How to Start Investment Plan?

Where to Invest Money

There are different ways for investing like bank fixed deposit, real estate, gold, currency, stock market, bonds, etc. Before you park your in any of the market one should perform research to analyze returns with time duration based on the past performance and conclude whether your investment opportunities is going to fulfil your retirement expenses. We will get into dept to understand best ways to invest for retirement.

Let us take an illustration to understand with the basic concept of investment. Let us assume Mr. Trader’s current monthly income and expenses report.

Income: Rs.65,000/- (approx. around $1000)
Expenses Summary:
1. Home Loan Repayment Rs.25,000/- (approx. 39% of Salary Income)
2. House Hold Expenses Rs.20,000/- (Includes Food, Transport, Shopping, Medical, etc)
3. Miscellaneous Expenses Rs:10,000/- (Including Society Maintenance and Electricity Bill)
Total Monthly Savings: Rs: 10,000/- Calculated as: Income – Expenses(Lets ignore the income tax fact for the time)

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