Financial Planning for Higher Education: Start Early

Let us today talk about the Financial Planning for your child’s higher education. Higher education in the fields of medicine, engineering or courses in overseas institutions can be exceptionally high 15 years from now.

A degree in Medicine which costs a parent around Rs.10 lakh today will cost over Rs.30 Lakhs after 18 years if the inflation rate were a modest 6%. So Whenever you start thinking of financial planning for your child’s education fund, you should consider the inflation first. You should consider the future value of the current capital and set your goals accordingly.

Well, Believe me, Bank Fixed Deposits & Bonds are not at all the safe instruments anymore. Because the inflation will eaten up its value over the time making the purchasing power of your money down every year. So it is advisable to invest in stocks and private Businesses if you want to achieve this much of capital gain.

Equity is the only asset class which can beat the inflation in the long run and can give you the best returns than any other asset class. Now, you will think that how to achieve this much huge financial target?

Well, It is very simple. – By Starting Investing Early.

If you start investing small but regular amounts of money every year than the compound interest will work more on your Investments and at the end of 15-18 years, it will give you the huge returns. The only key to beat the game of money is Time. The more time you invest, the more compound interest work in favour of you. And there is only one way to invest more time and that is you Start Early…!!!