Should I Invest Money or Buy a Samsung Fold Instead
Confession time, we Pakistanis can sometimes be really extravagant. It’s a little odd especially when you consider the economic conditions of the country. Of course, there is nothing wrong with wanting luxuries in life but it’s also true that you need to cut your coat according to cloth.
The thing about luxury items is that you can never really have enough. There is always something new just around the corner. Just take a look at the cell phone market. Everyday there is a new model which has the latest features. The Samsung Fold is a good example.
The Samsung Fold has widely been marketed as the most powerful personal device a person can own. It takes everything that made its predecessors great and improves upon them in every respect. Some of its features include improved identification system and dual rear cameras etc.
However, the question remains, is it really a worthwhile investment? Would you really want to purchase such an expensive device when you can choose to invest that money elsewhere?
Investments Versus Samsung Fold
The price of the new iPhone is somewhere between 80,000 and 100,000. Of course, that’s absurdly high but that’s the impact that inflation has on prices and economy. Of course, that’s not affordable for everyone. In order to get around this fact, consumers opt for monthly installments.
The problem though is that in most cases, the expenses of customers exceed their income and the monthly installments only increase the financial burden.
So, what’s the alternative? Well investing your money is one way to go about it. Now usually when we mention the term ‘investment’ people assume that they need a large amount of money. That’s not exactly how things work. Investing a small amount like PKR 5000 too can make a major difference.
At this point the reader might claim ‘why should I listen to you?’
That’s a fair point and you have all the right to question us. But we would also request you to give us a fair chance and allow us to demonstrate the benefits of investing money with a simple calculation.
Suppose you have PKR 10,000 that you intend to invest in a 5-year, 10-year, 15 year and 20-year mutual fund respectively. Also assume that you get a return at 12% compound rate.
The calculation will be as follows:
· Monthly installments of 10,000 for 5 years will result in a corpus of PKR 8.5 lakhs
· Monthly installments of 10,000 for 10 years will result in a corpus of PKR 23 lakhs
· Monthly installments of 10,000 for 15 years will result in a corpus of PKR 50 lakhs
· Monthly installments of 10,000 for 20 years will result in a corpus of PKR 96 lakhs
Looks appealing right. Just imagine what you can do with all that money.
You Live Only Once
We get it that in spite of all the calculations and rational arguments, there’ll be a segment of readers who feel that they only live once and should make the most of life.
That’s totally understandable after all the future is unpredictable and you never know if you will actually be able to spend all the money that you have saved.
“What if I never get the opportunity to spend all that money in the future?”
It’s true that just because you cannot afford something doesn’t mean you shouldn’t aspire for it. However, the goal should always be on working towards increasing your income.
The trick is to maintain a healthy balance between saving and spending. Once you learn how to maintain that balance, you wouldn’t even have to look at the price tag before purchasing a product.