Start Investing Little Money!

Start Investing Little Money!

Whenever we listen to the word investment then we come under stress that what to do with investment and savings and how to manage these big words, maximum of us think that only money can be made from money, not by us. Many of us think that investment means to exchange billions in a move, but this is not true. Small investments can reap big rewards and we will discuss this today that how we can become big by start investing little money. Even if you have few 100s in your pocket, that too makes wonders for your coming life.

Start Today Only

The most important is to begin it today only, do it from one pie if you do not have much as if you have not started your investment yet and thinking anything big to come then this would be the biggest mistake of your life.

we have two options with us either make big from small things or wait for whole life to do magics and wait big to come to you, in my approach we should begin ASAP because Time is Money! , understanding the concept of the time value of money is also of great importance to it.

Investing as soon as your earning begin is the only way to make you and your money bigger.

The below-given illustration will make this more worth :

Sanjay earning 25000 per month after tax

Started investing at the age of 30

Initial investment 2500/per month in RD account

At the age of 60, he would have saved approx 30 lakhs rs from this small monthly savings 

Deepak earning 25000 per month after tax

Started investing at the age of 22

Initial investment  2000/per month in RD account

At the age of 60, he would have saved approx 45 lakhs rs from this small monthly savings 

Try like your Grandma do

Investment can be started from anywhere, we all have seen our grandma's to save little money in their kitchen Jars hiding from others. She makes them unable to reach by anyone.

Initiate your saving likewise, save small pennies daily, and forgot, and then you will see that after a year you can have a good amount of savings to invest in any good profitable venture to make it grow.

These techniques especially work for those who are very prodigal in nature and can't save money in their pockets as well as in accounts. They always find some ways where they can do the expenditure. 

Change your star bucks coffee cup to Bru homemade coffee mug

This is really challenging for some of us but not impossible if we try to do it. The question is within us that we really want to save and invest. we generally use saving and investing words interchangeably but actually, they are totally different. Someone asked me a few days back that "how much saving you have of your own then I said I have very few with me as I have invested all my savings" then he smiled and said that ok you have employed most of your savings for your future.

This is a small statement and a very deep meaning.

Saving is saving your money after controlling over your extra expenditure and investing is putting your savings on a job. The investment follows savings and saving could be from anywhere either from your income or from your expenditure. The more you can save the more you will get in return. The early you can start the fast you can grow your money. Your spending habits can make you rich and that only can make you poor.

Go for Employer Sponsered Retirement Plan

You can opt for EPF saving funds to stay disciplined in your investment planning and implementation. Employee Provident Fund scheme is designed in the benefit of employees to make the auto cut sum from their salaries and the equal portion would be deposited by your employers and all the amount is tax exempted comes under section 80 C, this comes under the mandatory saving mechanism for salaried individuals:

Not covered under EPF than go for self-open account governed by Gov. of India

If you are not working with the employer who provides such benefits then you can opt for self-open PPF(Public Provident Fund) accounts, this is designed by the government of India. Anyone from us can open a PPF account and enjoy the high-interest rate benefits on your small savings and that too covered under section 80 C. Returns are fully exempted from tax.

If you initiate investing only Rs 1000 a month in PPF which is not a very big amount then see the wonders of compounding:

This is the magic of compounding, and we didn't realize it until we will not go through. So start Investing Little Money that can become bigger and bigger through the way of compounding.

Try with low-cost Index funds 

Low-cost index funds are another type of funds where an initial investment with a SIP of Rs 500 per month or lesser can be started. Index funds are the funds or exchange-traded funds(ETF) with a portfolio constructed or created to match all the components of the financial market index. Nowadays there are so many options available with you that educate you on how you can select the best index funds. Index funds are the type of mutual funds that are comparatively safer than any other type of fund as it is having the exposure of all the companies listed in the index. Index funds have a lower expense ratio than any other listed fund. What best you have to choose is a good and experienced Fund Manager and company to make your money safer and for better growth.

Summary

"Smart money, smarter you" The more early you start saving and investing, the more benefit you would get. It doesn't matter how much you can save even one penny a day can make wonders. This is true that money can be made from money but initially money will be brought by you. There are many options you can go through with and which required only a little of your investment and the boon of compounding can return it to us in bundles.

https://bijimoney.blogspot.com/2020/06/are-these-investment-options-attractive.html