Power of Compounding: It is the mantra given by a great scientist Mr. Albert Einstein. “Compounding is the 8th wonder of the world. He who understand it earns it, he who doesn’t pay it”. Compounding refers to the reinvestment of earnings at the same rate of return to constantly grow the principal amount, year after year. This also helps to create wealth in future. Even a 1% more CAGR (Compounding Annualised Growth Return ) over long term can give a humongous return. Let is understand this with examples.
Importance Of Budgeting: Its not about waiting for our finance minister announcing the budget, its about how we can take the benefit of the budget by planning our own financial budgeting.
Budgeting not only saves your money but also help you get rid of the difficult situation. Budgeting draws a line towards your spending and controls your financial planning. Budgeting saves you the stress of suddenly having to adjust to lack of funds.