How to invest your first Rs 500 💰 !!

Hey Readers,

Everyone has to start somewhere. For me, it was with Rs 300 in stocks as my first investment.

For Warren Buffett, it was just a small amount that led him to build his $ 66.7  billion empire.
Warren Buffett is one of the most successful investors of all time.

Buffett runs Berkshire Hathaway, which owns more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen.

What that proves is that it isn’t about the money you have — it’s about the knowledge you have. 

So good news: it’s okay if you only have a small amount to invest… that’s where most investors start anyway!

How rich you can get by investing just Rs 500 each month. 

So what're you waiting for? Read this blog post that shows small investment ideas for. 

RS 500 Investment ideas but “Without any knowledge Investing is risky and you can lose all your money.” 

To that, I would have to add that putting money into things you don’t understand is NOT investing. It’s SPECULATION.

This means it’s also Gambling.

“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1” 

Ask yourself what you’re trying to accomplish before you start investing. If you have enough money and that you don’t need a high rate of return to retire or stay retired…

If you love working and aren’t looking to retire early…

If a normal 4-6% return will do it…

Then you can buy a nice mix of stocks bonds and ETFs and you’ll probably (in the long run) see about that level of return.

But, you should know that in 20 years, it will take a portfolio of about $2.5 million to produce a $50,000 a year income for life in today’s buying power.

How are you going to accumulate $2.5 million?

The answer is you can’t at those low rates of return.

That’s why you should consider learning how to invest (real investing, not speculation).

“Risk comes from not knowing what you are doing.”

First, Understanding the meaning of Greed. 

A few months ago, I watched a Netflix movie 'Triple Frontier' Few Military guys want to take down a drug lord on their own & take his millions of dollar n disappear. Full-fledged plan & Perfectly Executed with almost 100% Accuracy. 

Just one thing, They planned for a Helicopter that can lift a certain weight, But never calculated the weight of huge cash they carried. So, eventually in the mountains, due to air pressure, it crashes & the whole debacle starts.

Will help a lot to understand GREED. MUST WATCH !!

 What Is an Investment?

An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

Making Small Investments Strategy.

Investing is, in my definition, buying something worth $10 and paying $5 for it. You are pretty certain you’re going to make money almost no matter what happens. That’s investing.

Gambling is paying full price for something and then hoping it goes up. If you’re going to invest a small amount, you first want to consider how much the thing you want to invest in is actually worth. What’s the real value? Then, what’s the price?

If the price is less than the value, then that’s probably a good investment.

The best way to invest Rs 1,000, Rs 500, or Rs 5,000 is the same basic investing strategy as it is with Rs 10,000,000.

Investing is always investing.

How to Invest Rs 500 

Are individual stocks the best way to Invest Rs 500?  When you’re thinking about how to invest Rs 500 you need to consider individual stocks. Rs 500 isn’t much to start with, but it is a start.

If you can start with Rs 500 per month with 17 to 20 % interest ( take 17 % interest)  and come up with Rs 7070 per year and invest like Warren Buffett, you might have Rs 4.1 Million in 30 years with an investment of Rs 6,000 per year.

It’s the power of compounding interest that can make you rich even with almost no money.

If you put the Rs 6000 money in ETFs and get the long term historical return of 7%, all you’ll have in 30 years is Rs 584726

Same return for mutual funds but remove 1.5% for fees and you’ll end up with Rs 1.03 Million 

Same thing with bonds but worse. If you average 5% in bonds with no fees, you’ll have Rs 407688
Same thing with SAVINGS ACCOUNT  but worse. If you average 4% in SA with no fees, you’ll have Rs 254347

Bonds are the safest, but how safe is a retirement of Rs 254347 ?

Go get a part-time job and you can make it back in a month and take another shot. If I were you, I’d try to find the place where I could combine my skills and passions with hard work to make a high return.

For me, it’s the stock market. If only because you get good at it, people will give you more money to invest for them than you can imagine.

Best Way to Invest Rs 1,000

Another common question “What is the best way to invest Rs 1,000?”

Here’s the deal:

Charlie Munger says that there are four things you’ve got to focus on when you invest your Rs 1,000 or any amount of money.

1). Be sure you’re capable of understanding the business that you’re getting into.

2). Be sure that this business has this thing that we call a moat. Something deeply embedded in it that protects them from the competition.

3). Make sure that the management team are people who share your values, have integrity, are talented.

And finally, you have to buy it on sale. We call that a margin of safety purchase price.

Investing isn’t about jumping in wherever with Rs 1,000. It’s not about saving more to jump in with. It’s about finding something that you love and you understand to buy. Learning to invest takes a bit of time, but the rewards are well worth it.

The key thing to understand is that we make money by buying wonderful businesses and buying them on sale. We make the money when we’re certain that we have what we think we have.

Shoot for 15% Returns on Your Rs 1,000 Investment

A great rate of return would be 15% a year. If you’re starting with a small amount of money and making 15% you’re doing good.

It’s really not about the amount you’re starting with, it’s about the strategy you’re using that going to continue to grow that pile over time.

Invest in Yourself 

By far, the best investment you can make is the one you make in yourself. The better you equip yourself with the knowledge and resources that you need to be successful as an investor, the better your returns will be.

Really, the only thing standing between you and the ability to pick great companies each and every time is the right education.

What Can I Invest in to Make Money Fast?

The answer to this question might disappoint you. Investing and making money fast go together about as well as oil and water…

If you want to make money fast, go to Las Vegas, bet everything on black and hope you come out on top. When you’re taking risks just to make money fast, you’re not investing, you’re gambling.

We don’t gamble with our money here. We buy wonderful companies at attractive prices.

If you really want to learn how to invest and learn how the richest people in the world invest, it takes a good amount due diligence. But the long-term payoff is worth it. And you won’t ever have to risk losing all of your money to do it.

IMPORTANT:

- An investment always concerns the outlay of some asset today (time, money, effort, etc.) in hopes of a greater payoff in the future than what was originally put in.

Depending on your goals the strategy may be different for everyone, but that’s the beauty of investing! There is no one path to success.

Now… go play! AND WIN 

THANK YOU !