Today is International Savings Day. It is also called the ‘thrift’ day. It all started in 1924 when the first International Savings Congress was held in Milan, Italy. Since then, a lot of savers have turned into investors. Yet, many fail to realise the importance of savings as the step of investing.
Start saving early to start investing early Keeping some portion of your income aside for a rainy day is common. But, putting your money in a Bank account or investing it is better than keeping it under the pillow at home. It will fetch you returns and will be useful when you need it the most. Financial planners often say you should have about 3-6 months of your expenses as savings. QUICK TIP: Invest through regular Systematic Investment Plans (SIPs) in Liquid Funds.
Save and invest in tandem When you invest, your money grows. Your savings above your emergency fund, should work to beat inflation and meet your financial goals. Invest regularly to generate returns over the inflation rate. QUICK TIP: For long-term investments to beat inflation and generate wealth, invest in Diversified Equity Mutual Funds ().
You can invest as low as Rs.500 Do not be disheartened if you are unable to save enough to invest. You can begin with as low as Rs.500 per month in an SIP. Moreover, step-up SIPs allow you to increase your SIP contribution over time. QUICK TIP: It is only wise to keep increasing your SIP amount as your income increases.
Understand Time Value of Money The money that you have today is worth more than the same amount in the future. This is because of its potential earning capacity. The sooner you invest your savings, the more you can accumulate, thanks to the power of compounding. QUICK TIP: Prioritise long-term investments. Do not stop your SIPs.
Save Tax with With , you don’t just save for your future, you also save Tax. If you invest in an Equity- Linked Savings Scheme (ELSS), the amount invested up to Rs.1.5 lakh can be deducted from your Taxable income. QUICK TIP: Stay invested in ELSS beyond the lock-in period of three years to meet your long-term financial goals.
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