We read from time to time that India is progressing at a rapid pace. It's economy is ticking at a nice rate (around 7%). We also witness the changes that have taken place in the attitude and lifestyle of the Urban Indians when we (NRIs) visit India. From time to time we receive emails and attachments about our achievement in various fields such as better infrastructure (modern roading), more satellite channels etc. and that the number of rich people in India has grown exponentially.
Bush visits India and is shown India's pretty face. We also think all is spectacular with India except a few problems such as corruption and bureaucracy.
Are we aware that around 70% of the population still lives with a wage of under $2 per day? (Courtesy - The Time Magazine). This growth rate of around 7% would translate into a couple of hundreds of rupees per month for the poor people of India. And it is these people who are the real face of India.
So...the real question is 'have we progressed economically?' Or are we cheating ourselves and the world?
It is said that when Nehru visited the Rural India (before he became the P.M?) he was moved to tears seing the plight of the Rural India. Have we moved forward from that position or have we merely created an illusion of progress?
Thursday, March 16, 2006
Monday, March 06, 2006
Who doesn't want to be a millionaire?
Everyone wants to be a millionaire. A million bucks in whatever major currency is big money. We envy the lotto winners pocketing megabucks. Though the smart ones among us know that these big money winners seldom live happily ever after, we still feel that a million bucks will somehow set us free.
How many of us know the eighth wonder of the world - "Compound Interest". Even if we know, how many of us have the character to apply the basic rules of investing and compunding a sum of money from an early age - so that we become millionaire a few decades thence?
Yes, there is a wait period but the certainty that we will eventually become a millionaire is a heartening feeling.
Warren Buffett follwed his path to riches by making the eighth wonder his fast friend.
$10,000 invested at 15% compound interest for 35 years will make the coveted million. A little more added to it every year will result in a million more.
So, the challenge is to keep the money invested for the whole period. A tougher challenge will be to earn 15% average compound interest over the period.
Have you found a formula for investing which yields 15% p.a, or have you come across a fund that pays the same return?
If your answer is yes - then you are certainly on your way to the millionaires club.
How many of us know the eighth wonder of the world - "Compound Interest". Even if we know, how many of us have the character to apply the basic rules of investing and compunding a sum of money from an early age - so that we become millionaire a few decades thence?
Yes, there is a wait period but the certainty that we will eventually become a millionaire is a heartening feeling.
Warren Buffett follwed his path to riches by making the eighth wonder his fast friend.
$10,000 invested at 15% compound interest for 35 years will make the coveted million. A little more added to it every year will result in a million more.
So, the challenge is to keep the money invested for the whole period. A tougher challenge will be to earn 15% average compound interest over the period.
Have you found a formula for investing which yields 15% p.a, or have you come across a fund that pays the same return?
If your answer is yes - then you are certainly on your way to the millionaires club.
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