The quiet edge: saving more trumps the exciting habit of investing better
Let me show you why the larger one wins, because the arithmetic is more lopsided than people expect. Imagine two savers, both starting from nothing, and investing every month for ten years. The first is sensible but unremarkable and puts away ₹20,000 a month, earning a quite ordinary 8% a year. The second is the clever one, the sort who reads everything and picks brilliantly, and, let’s say, manages 14% a year, a return that is hard to sustain over a decade. This clever saver, feeling proud of his cleverness, sets aside only ₹12,000.
