BOOK EXCERPT: Mint Your Money

To enter in this loop, the condition was to channelise savings in a way such that it increases your True Assets, which in turn raises your Personal Capital. This channelising of savings is nothing but investment. Your Personal Capital is something that works for you and earns money for you. An increase in your Personal Capital opens doors to new streams of income which, in turn, increase your savings. To harness the power of this loop of wealth creation, the only thing you need to do is invest your money in buying True Assets. If you are able to create a considerable amount of Personal Capital, you wouldn’t have to worry about fuelling the loop after retirement, as after some time, it takes care of itself.

Pranjal Kamra

Many people misunderstand investing as a mere tool to save taxes. A life insurance policy or contribution to your PF account will definitely help you save some taxes. But saving taxes should not be the sole criteria for an investment decision. The overall returns, in line with your objectives, should direct your decision-making

And saving tax is not enough. Investing possesses the power to provide you with inflation-beating returns and will enable you to harness the benefits of the loop of wealth creation. Your investment in True Assets will ensure that you meet all your goals at the right time. You should start focusing on investing proactively by buying True Assets. Otherwise, all your efforts will result in just trying to beat inflation, and not creating wealth, or enhancing your Personal Capital.