It is school reopening time, the vacations are over. You have a message from the school that reads like a notice: “Fees for the next academic year for your ward are due. Kindly pay the amount before the 10th of this month.” And you think how in heavens am I going to arrange for such large sums instantly? It feels like a déjà vu.
Wikipedia explains Déjà vu as the feeling that one has lived through the present situation before. The phrase translates literally as “already seen”. Yes, this same scene plays out year after year. So do you feel like Tom Cruise, or do you feel the same as Tom Cruise does, in the movie Edge of Tomorrow? If you’ve seen the movie you can tell the difference! To be clear, it sucks.
But, relax, the same scene does not have to play again next year. All it takes is a tiny effort on your part to correct the situation. Just like you would pay an EMI or installment on your home loan or vehicle loan every month, you could pay yourself an ‘EMI’ every month that goes into a special kitty that at the end of 12 months, funds your child’s school fees. If the fee amount is Rs.1 lac a year, just divide that into 12 equal parts. (That is Rs.8,333/- a month.) Now all you have to do is start a SIP (Systematic Investment Plan) into a liquid fund. Voila! This time you have control over your destiny and no need to search for the money anymore. Liquid funds are very, very safe and even earn you about 5%pa to 6% pa on your investment. They are also fast to redeem – only one working day needed to get the money back into your account along with the gains.
Try it. And see how your life changes. Become Tom Cruise!
T. Srikanth Bhagavat
Managing Director & Principal Advisor