As I was sipping on my cup of tea (I hate coffee) on a rainy day, in a cafe where I usually chill, I overheard two gentlemen having an interesting conversation. One of them was continuously, during the course of the conversation – trying to explain the other, the importance of saving money. I could not hear much as these gentlemen left the cafe within a few minutes of my arrival but they did manage to start a series of thoughts in my head. I started thinking about money and how saving all your money in the bank is the dumbest thing you could possibly do with it!
Think of this – What’s the first thing that happens when you put your money in the bank? – It disappears!
It becomes a random series of digits that just turns into a virtual number…. Boom! just like that, all gone! So, where does this money go?
While a good chunk of the money goes into extending loans, a big part of it is invested in real estate, stocks, other businesses, and projects.
Banks generally provide an interest of 3.8% on a savings account (which I think will start going down further) and an interest if 6.8% on fixed deposits which means they will need to invest in things which provide a higher return than the interest they provide.
The interesting part is – we as educated people who have direct access to the markets that these banks invest in – still refuse to invest in stocks or real estate!
If this isn’t dumb.. what is? It’s just math and a bit of analysis. When we put so much effort to earn the money, why don’t we go the extra mile to understand these markets which can give us exponential returns? We all know about the real estate prices and how they’ve skyrocketed in the past 10 years.
To give you an interesting fact, the Sensex, the S&P 500, Nifty 50, Nikkei….all of these have given at least 15% returns on average.. year on year keeping in account 1991, 1997, the 2008 crisis and every other thing that has happened on the planet that shook global finance.
The best part – these banks put out a list of the 5 best stocks to invest in. What may also surprise you is that it is free for everyone to view and those who’ve read the last article or understand how the markets work know – how sharing this information is only beneficial for these banks and they have no reason to hide it. In simple words – Cash is trash, cashflow is the real deal!
The best thing to do with money is to invest it thoughtfully.
Similarly, when you invest in your business, you need to see the ROI on your investment- which brings me to branding! In today’s world, the perception you create about yourself becomes the reality. Branding is that one thing that can set you up by helping you hand craft that perception. for my two cents on branding – please stay tuned for the next article and to make the best investment in branding and your business