Imagine training for a marathon. You wouldn’t lace up your shoes and run for 26.2 miles right off the bat, would you? The same principle applies to investing. Systematic Investment Plans (SIPs) are like your daily running regimen – a disciplined, regular effort towards a larger goal.
Just as running every day builds your stamina, investing in SIPs monthly nurtures your wealth. Compounding, the ‘8th wonder of the world’, as Einstein put it, works best when given time. Regular investments allow compounding to spin its magic, amplifying the growth of your wealth. It’s like turning a single grain of wheat into a whole wheat field over time.
But what happens if you don’t keep up with your regular training, or in this case, miss a few months of your SIP? Let’s say you delay your SIP investment of Rs. 10,000 at an assumed growth rate of 12% p.a. by just 5 years. The difference in your corpus at the end of a 30-year period can be over 1 Crore!
* Start at 25 years, keep investing till 60 years (35 years): Your corpus could be around Rs. 3.3 Crores.
* Start at 30 years, keep investing till 60 years (30 years): Your corpus could be around Rs. 2.2 Crores.
That’s over 1 Crore less just because of a 5-year delay!
So while it is not legally ‘compulsory’ to invest in SIPs every month, it’s much like regularly training for that marathon – skip it at your own risk!
And remember, it’s never too late to start. With discipline, patience, and consistency, your financial goals can be within reach. As your wealth grows and your needs change, you can always reassess and adjust your SIPs, much like a runner tweaks his training schedule.
Investing is a marathon, not a sprint (in investing sprints are like options trading!). So lace up, start your SIPs, and keep going. Your future self will thank you!
