Why should you invest? The answer is very simple: to create wealth. And why would you want to create wealth? Well, to fund various financial goals you may have in your life like an expensive TV, foreign holiday, retirement, and so on. The trouble is that most of us have a single source of income and there are various needs that are immediate, medium term and long term. If we move from one goal to the other with our accumulated savings, we would be left with almost nothing for our long-term goals. This is why it is important to not just keep money in the savings bank, but use it to make investments that will help you create wealth over a long period of time. If you start your investments as early as possible, you will be in for a pleasant surprise. This is because time and compounding interests are a lethal combination that will multiply your wealth beyond your imagination over a long period of time. Consider this example: Ram and Shyam are friends, both are 30 years ...
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