While it is okay to enjoy life, investing and saving is also equally important. Here’s how you can do it
Today’s generation are not like the previous generations. They no longer succumb to the wishes of their parents. They believe in enjoying life to the fullest and prioritise experiences over material things. As a result, millennials procrastinate savings and investing for other day. While it is okay to enjoy life as it comes, it also equally important to save and invest for a better tomorrow. You may say that we have not seen the future and that we may not live long. But what will happen if you live? Investing is nothing but exercising delayed gratification for a better future. With the rise in technology and availability of cheap data, it has become easy for millennials to start investing at a click of a button. We need to invest for various reasons such as to fulfill our financial goals and have a happy retirement. Some of the popular investment avenues for millennials are recurring account, fixed deposit and mutual funds. Here’s how you can start saving and investing:
- Open a Recurring account: Many millennials live paycheck to paycheck. Hence, the option to save or invest the surplus money does not exist. The right way to go about it will be to save a portion of the income before spending. Opening a recurring account is an easy way to take the first step towards a financially secure life. You can open a recurring deposit either with your existing bank account or with a new bank through the bank application and online banking. All you have to do is set the monthly investment amount along with the investment time frame of your choice. The amount will be automatically deducted from your bank account which will make you financially disciplined. You can also use RD calculator to know your maturity value.
Open a recurring account
- Invest in mutual funds through systematic investment plan: Investing in mutual fund through systematic investment plan(SIP) is also an easy investment option for millennials. Just like in RD, when you invest in mutual funds through SIP, a specific amount is automatically debited from your bank account. There are different types of mutual funds and you can choose your fund based on your investment horizon and risk tolerance. You can start investing with as little as Rs.100 per month.
- Opening a Fixed Deposit(FD): FD is still an attractive saving instrument for millennials. It is a good saving option if you want to park your money for a few years. As the money will be locked for some time and withdrawal before the maturity date attracts penalty charges, you should be sure before opting for FD. The tenure of FD can vary from seven days to 10 years although now-a-days banks hardly offer fixed deposits of more than five years. FD Calculator will help you to find out how much you can earn through our Fixed Deposits, know the maturity amount and interest earned on your deposit.
Open a Fixed Deposit
Just like any other habit, it needs time and patience to cultivate saving habit. These were just few of the ways to help you kickstart your investment journey.