The Eighth Wonder.

You know what is the 8th wonder of the world?

It is the power of computing. In other words it is the compound interest that banks and financial institutions pay to us when we invest money with them.

For eg. if you are 25 years and if you start investing Rs.1000/- per mensem, at the age of 55 you will get Rs.30.8 lakhs.

On the other hand if you are 35 years and if you start now, your net return at your 55th year will be Rs.9.19 lakh.

So the power of computing is the eighth wonder of the world.

We have to evolve a S I P a systematic investment plan. One such plan is put some money in a R D account in a bank or post office. R D means recurring deposit.

We can make a minimum investment of Rs.l000/- for a period of five years or ten years .

We can instruct the bank where we receive our salary to credit the amount from your salary every month, to a R D account . It will help you to avoid the monthly visit to the bank. The bank will automatically debit the sum from your salary.

Or we can have two or three RD accounts in the name of wife, son or daughter according to our earning and saving capacity. It will have more useful results.

What to do after the RD matures? Convert it as Fixed deposit . So if you are in your 30th year and you invest in RD continuously up to your retirement, you will receive your maturity in your 35th year, 40th year, 45th year, 50th year and your 55th year. So you will have five FD accounts at your ripe age.

Continuous flow of drops of water will fill the bucket very quickly.

For some obvious reasons some people might forget to withdraw their salary in banks every month. Never do that. This is a dangerous thing. Whether you need the money or not, we should withdraw the money immediately and we may reinvest in something . It will avoid lot of problems in the long run.