By Irshad Mushtaq
Most middle-class people tend to save their money in fixed deposits, insurance, and traditional social obligations such as gold?
This has been a common practice for many years, but is it really the best way to save and grow your money?
Many middle-class individuals are comfortable with putting their savings in fixed deposits in banks or buying insurance policies because they feel that these are safe options. They like the idea of guaranteed returns and the security that comes with these investments. However, what they fail to realize is that the rate of return on these investments is often lower than the rate of inflation. This means that their money is actually losing value over time.
Similarly, investing in gold has been a popular choice for many people, especially in countries like India. However, the traditional way of investing in gold by *buying jewelry* or Bank issued coins is not always the most profitable. When it comes time to *sell* these items, the buyer often deducts a significant amount for making charges, premium leaving the investor with less money than they had hoped for.
In today’s world, with advancements in technology and access to various investment options, there are better ways for middle-class individuals to grow their money, with some percentage of money Investing in quality shares or mutual funds, for example, has the potential to provide much higher returns than traditional savings methods, generally which rich people do,like FIIS, With proper research and guidance from financial experts, it is possible to see significant growth in your investments over time.
It is important for individuals to understand that their money should be working for them, not the other way around. By diversifying their investments and choosing asset classes that have the potential for higher returns, middle-class individuals can ensure that their savings are growing and keeping pace with inflation.
In conclusion, while it may be comfortable to stick to traditional savings methods like fixed deposits, insurance, and gold, it is important for middle-class individuals to explore other investment options that have the potential for higher returns. By taking a more proactive approach to their finances and seeking out expert advice, they can secure a more financially secure future for themselves and their families.
Irshad Mushtaq, Founder of M I Securities and Business Partner at Sharekhan Srinagar J&k! An investor, author Contact : [email protected]
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