What is KAIZEN principal & how it can help in our FINANCIAL PLANNING ?
What is KAIZEN's principle & how can it be utilized in your FINANCIAL PLANNING?
First, let's discuss what is Kaizen?
It's based on the law of "Incremental Improvement". Incrementally we can improve our habits & implement that learning into our practical life day by day, Japanese call it the Kaizen Principle, the principle of continuous betterment, getting a little better every day.
If you wanted to increase your product performance and output by 1/10 of 1% per day, could you do that?
Could you increase your productivity performance and output by 1/1000th in a day? I think yes you can,
If you were the tiniest bit more efficient or you had worked a little harder & consciously on a more important task you could become 10th of a % better in a day, well if you do that every single day for a week you would be 1/10th of 1% times five, you'd be one half of 1% more productive in a week, yes I think you can do that if you did that every week for 4 weeks you'd be 2% more productive over the course of a month if you did that every month for next 1*12 months you would be 24% more productive, is that possible? if the answer is yes, then your result would be a practical example of the theory "Momentum Principle ", if you do this 24% each year for the next 10 years you will be 1004% better, a little more productive every day - every week - every month and after a year you find a new person within you, first your inner circle will recognize this change. This principle will not only increase your Income it will also increase your life span, people will also love to be attached to you, and you will be a magnet in society.
My next point is, how the Kaizen principle is applicable to your financial journey
You start your investment journey early with a proper financial plan & invest money according to your pocket, we may all know this but " ISE ME NAYA KAYA HAI ", every new year you increase your investment by at least 10% for the remaining period of your desired financial goal.
How it will affect your corpus let's explain
Scenario - 1
If you invest Rs 1000 per month for the next 12 years @ 12%, your total investment would be, Rs 144000 after 12 years your return would be Rs 319061.56
Scenario - 2
You invest Rs 1000 per month for the next 1 year @ 12%, here the difference is you increment your investment @ 10%, your total investment would be, Rs 186000 after 12 years and your return would be Rs 483562.
Your extra investment would be ( Rs 144000 - Rs 186000) = Rs 42000, but the return would be
(Rs 319061.56 - Rs 483562 ) = Rs 164501, so only 10% more investment in your portfolio can create a great difference in your investment portfolio, that extra return may give you better purchasing capacity as your spending habits always give pleasure to you & your loved ones.
I believe
What you earn in your life, doesn't attract the people around you, how you live your life & your spending lifestyle always attracts people, your success in your life is a result of your
" Momentum Principle ".
Raja Bhattacharjee
posted by Raja Bhattacharjee @ February 27, 2023
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