As a financial advisor I meet many professionals and families regularly to understand their needs and advise them suitably. Often the topic of discussion is in “how prices have gone up” and “how difficult it is to save now” and “how much interest rates have dropped resulting in low returns” etc.. etc..
I usually pose a simple question to them.
How much do you spend monthly on the morning newspaper delivered to your house. The answer I get is Rs 120-150 p.m.
I then ask how many years will you read the newspaper and the obvious response is “entire lifetime” say 80 yrs.
I then tell them if you just saved the money spent on the newspaper (Rs 150 p.m) thru your life time and if we assume just 2% p.a inflation on newspaper prices (which you will anyway pay without questioning) and this money saved fetches an 8% p.a return, then how much it will become?
Most people give a wild guess that is far off the mark!!
Well, the answer is Rs 1.46 crore - in your lifetime!!
Shocking, but true!! See the workings in image attached.
I stopped reading newspapers more that 5 yrs back and still stay well informed. How about you?