Poisa Kotha 3: A series on Financial Literacy

Two young professionals are celebrating their 30th birthday together.
Ajay: Bro, we have to start thinking about retirement. I’m going to set aside Rs. 3,000 every month for my retirement, and I plan to retire at age 60.
Naga Manu: Ayah, I’m still young. I’ll think about retirement only after I turn 35.
Ajay: I think it’s smart to start early while we’re still young, healthy, and earning.
Naga Manu: Arey, I’ll start when I turn 35. Anyway, what difference does it make if I start now or 5 years later? It’s just 5 years!
We all have different goals—and in this case, it’s retirement.
Who do you think will have more money for retirement? Common sense tells us Ajay will have more. But by how much? That’s exactly what we’re going to discuss today.
If Ajay starts investing Rs. 3,000/month from age 30 until age 60, earning 6% annual return, his final portfolio value will be Rs. 29,37,769.
For Naga Manu, if he invests the same amount but starts only at age 35, assuming the same return of 6%, his final portfolio value will be Rs. 20,38,742.
That means Ajay will have Rs. 8,99,027 more than Naga Manu! This is the cost of delaying your investment.
Some of you might be thinking, “Sure! Ajay had a head start of 5 years, so no surprise.”
Fair enough. Let’s try another scenario. Suppose Naga Manu decides to start investing at age 36—just one year after Ajay. His total portfolio will be Rs. 27,36,424. Even this one-year delay means his ending portfolio will be Rs. 2,01,345 less than Ajay’s!
If you want to see for yourself how delaying your investments can affect your returns, visit this resource: dspim.com/investment-calculator/cost-of-investment-delay.
So, whether you’re planning for your retirement, buying property, planning for your children’s education, or saving for a world tour, remember that delaying your investment—even by one year—can be very costly.
Until then, take care and make sure to invest early for your future!
Disclaimer: This guide is provided solely for educational purposes to raise financial
awareness and help you make informed decisions. It is not investment advice, nor
is it a solicitation or endorsement of any financial products or services. Always
consult with certified financial advisors and invest only through well-established
and regulated companies to ensure the safety and suitability of your investments.