Page 46 - Banking Finance September 2024

ARTICLE

Every extra rupee you invest will take you to your Goal automatically see an increase in your investments to
closer and quicker. accelerate your wealth creation.

Other Benefits : 3. Discipline :
Maintain consistent investment habit and avoid
1. Outpace Inflation :
withdrawing your funds unnecessarily.
Topping up Your Investments acts as a natural hedge
against inflation, ensuring that your money grows
Challenges?
faster than Inflation.
1. Your income may not always see an annual increase.
Even if they increase, there could be situations
2. Flexibility :
wherein the expenses would have shot up alarmingly
Unlike traditional investments like FD, RD, the SIP
leaving little room for topping up investments.
Top-ups offer unmatched flexibility letting you have
complete control over increasing your contribution 2. Unforeseen events like a Job Loss, accidents, deaths
based on your financial situation like salary could impact significantly both the earning capacity
increments, bonus, etc. as well as steep rise in expenses.

Yes Challenges will always be there but the advantages
Strategy to top up SIP :
of Topping Up Sips are too many and highly beneficial
1. Start small:
to ignore them.
Starting with a small increase lets you manage your
budget without burdening your finances. Keep finding ways to increase the SIP Top up and reach
your goals faster!
2. Increase Annually:
Every annual increase in your income should Happy investing!

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4. COVID-19 type events would corner Mr. Credit in a return. Delhi's Rajouri, Vasant kunj & Karol bagh boast
dire state with no job & chasing recovery agents. lone elderly in huge mansions. We're christened from
being Owners to Loaners for life. Advance Salary, Zero
Story - Vanderbilts were the wealthiest American family. cost EMI are a curse. Pain & Pleasure are parts of the
George Vanderbilt spent 6 yrs building 1.35 lakh sqft same coin. One who enjoys advance pleasure on borrowed
house with 40 rooms & 400 staff. But spent little time funds bears the pain in decades of repayment.
as it "utterly unaddressed to any possible arrangement
of life." The maintenance cost nearly ruined with 90% Don't get us wrong as if to strangle your dreams. Instead,
of assets sold to pay taxes & turning the house into all what we are suggesting is to own, not LOAN, your
museum. A slew of Indian Forts face the same. dreams. Small savings & delayed gratification on
impulsive buying would be able to correct the equation
N Taleb wrote - "The richer we become, the harder it as below.
is to live within our means. Abundance is harder for us
to handle than scarcity."

Credit is abundant today. Parents hypothecate life's
savings to fund fancy foreign education & kids never

42 | 2024 | SEPTEMBER | BANKING FINANCE